Being in debt for large amounts of money with several creditors can be a scary situation. You might have very little ability to pay some of the collectors, but their calls are relentless. They will try to intimidate you, but making threats, and calling you at work. Day to day living can become unbearable and seem almost hopeless.
A lot of people will find themselves with a very large burden of debt in their lifetimes. Sadly, not many people understand how to relieve themselves of this burden. Many think their only recourse is to file for bankruptcy.
Not only is this not the case most of the time, but will damage the credit score needlessly for anyone involved. When someone declares bankruptcy, they are telling their creditors and the government that they have no ability whatsoever to repay the money that they owe. The only thing they can do is sell everything they own and start fresh. Even when people reach settlements, they are often not mutually beneficial. Can you imagine a company being happy that they aren't going to be paid the money they are owed? Most people get pretty angry when they can't collect on the money they are owed.
Using debt settlement and consolidation agencies is the most preferable way to go about this for most people. Your consolidation agency will work with the creditors, and determine a plan that will work for everyone. This way, the lender doesn't feel short changed, and the borrower regains the ability to pay down his debt. This method is nothing like bankruptcy, where you simply declare that you cannot pay your debts, and cut off all creditors and lenders. Doing this will put a mark on your credit report for years, making it impossible to get a loan for anything, even a house.
Creditors really don't like turning accounts over to collections because then they will never see their money. Because of this, they are generally willing to reduce your debt by 50% to close up the account immediately. You really should let your debt consolidation negotiating agency handle this for you, as they will know the tricks of the trade and applicable laws.
A lot of people will find themselves with a very large burden of debt in their lifetimes. Sadly, not many people understand how to relieve themselves of this burden. Many think their only recourse is to file for bankruptcy.
Not only is this not the case most of the time, but will damage the credit score needlessly for anyone involved. When someone declares bankruptcy, they are telling their creditors and the government that they have no ability whatsoever to repay the money that they owe. The only thing they can do is sell everything they own and start fresh. Even when people reach settlements, they are often not mutually beneficial. Can you imagine a company being happy that they aren't going to be paid the money they are owed? Most people get pretty angry when they can't collect on the money they are owed.
Using debt settlement and consolidation agencies is the most preferable way to go about this for most people. Your consolidation agency will work with the creditors, and determine a plan that will work for everyone. This way, the lender doesn't feel short changed, and the borrower regains the ability to pay down his debt. This method is nothing like bankruptcy, where you simply declare that you cannot pay your debts, and cut off all creditors and lenders. Doing this will put a mark on your credit report for years, making it impossible to get a loan for anything, even a house.
Creditors really don't like turning accounts over to collections because then they will never see their money. Because of this, they are generally willing to reduce your debt by 50% to close up the account immediately. You really should let your debt consolidation negotiating agency handle this for you, as they will know the tricks of the trade and applicable laws.