Consumer Debt Relief – Popular Debt Relief Options

debt relief
by dukeocc

Consumer Debt Relief – Popular Debt Relief Options

The three most commonly used consumer debt relief options are liability consolidation, insolvency and debt consolidation. Out of these three consumer debt relief options; the liability negotiation one is the most effective way of solving liability issues and the insolvency option is considered as the most ineffective one.

In the debt consolidation process the debtor hires a consolidation firm and the consolidation firm adds all the liabilities of a debtor and provides the consumer with a discount on the amount of interest rate he was paying on the amount of loan he has originally borrowed. The debtor then pays the entire liability amount with that discount. The debtor gains relief from liability amount when he has completely paid the accrued amount.

In the case of insolvency the debtor hires a lawyer and files a bankruptcy law suit claiming that he is bankrupt and he is left with no money to reimburse the borrowed amount back to the creditor. If the court believes that the case is made on true foundation; the court allows the debtor to gain freedom from the liability amount without even paying a penny. Many think that this option is a lot helpful but the after affects of this option has ruined the lives of many Americans and the American economy which is considered as a giant has even been affected by this liability elimination method.

In the case of liability settlement a debtor claims that he has no money to repay the borrowed amount and wants to gain relaxation from all issues created by liability. The creditor is presented with the facts and if the creditor believes that the facts are true;’ the creditor allows the debtor to settle the entire amount.

The debtor has to hire a settlement firm which negotiates with the creditor and gains a discount on the amount of money lent to his client. The client even gains discount on the rate interest he has to pay on the remaining amount and gets extra time to reimburse the amount. With so many relaxations; the debtor eventually pays off and clears all his liability issues.

The after effects of settlement on the credit history are unnoticeable and these can be easily repaired after the process and the after affects of insolvency have the capability of ruining the future of the debtor as his ratings are very adversely affected. The selection of one of these methods depends on the financial situation of the debtor.

Debt settlement is a legitimate alternative to bankruptcy and can make financial sense for consumers with over $ 10k in unsecured debt. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.

www.LegitimateDebtSettlement.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

http://www.LegitimateDebtSettlement.com

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