Consolidating debt without bankruptcy
These debt relief programs don’t have a negative impact on your credit but may limit your credit options for their durations.
Bankruptcy: This should be a last resort as it negatively affects your credit for many years.
Types of debt vary, and this influences what you can consolidate.
The first thing to determine is if your debt is secured or unsecured. For example, car loans and mortgages are secured debts.
Many of these options work hand in hand with or as part of a larger debt reduction program, but in general, these are your choices: Debt Settlement: Settlement is the process of negotiating with your creditors in hopes of reducing the total amount of debt you owe them.
While you can undertake this process on your own, many people choose to hire a professional debt settlement company or lawyer to negotiate on their behalf.
While you're building up your funds, the company or lawyer you've selected negotiates with your creditors to try to reduce the total amount of debt you owe.After 100 hours of researching and calling debt consolidation companies, our top choice is National Debt Relief, which is one of the most transparent companies we spoke to.It offers top-notch customer service and its costs and fees are well in line with industry standards.The goal of consolidation is to have a lower payment at a lower interest rate than you currently have.It can be confusing because debt consolidation is also used to refer to debt settlement programs as well.