What is the Best Debt Settlement Method?

what is debt settlement
by LSE Library

What is the Best Debt Settlement Method?

Sometimes debt can just become overwhelming and in some cases can only be solved with professional help like that you get from debt consolidation but what is the best debt consolidation method? The answer to that question really depends on you as everyone is different, has different types of debt and different options to get rid of that debt. Let’s look at a few of the methods people use to consolidate that debt.

The Home Refinance Can Be Used to Consolidate Debt

When you own your home or a large part of your home but have a ton of credit card debt or owe health bills, then refinancing your home may be the best debt consolidation method. This is an option many people who own their home or almost own their home choose because it is the easiest way to consolidate and the least costly. Many lenders will give you a refinance loan based on the collateral you have in the home. The only disadvantage to this type of loan is that your home becomes the guarantee for the loan.

The Personal Loan Can Be Used to Consolidate Debt

Another great option that can help pay for your consolidated debt is through the use of a personal loan, especially if that debt is not substantial. A personal loan is easy to apply for and generally has an approval or denial within a few days. Personal loans are not hard to get, mainly because you are required with less requisites than other kind of loans. The downside, however, is that the amount you can apply for is not that substantial, so if your debt is higher than ten to twenty thousand dollars you need to find an alternate choice.

Friends and Family

The last option and probably not the best debt consolidation option is to ask your family for help.

Often if everyone pitches in for a personal loan you can cover that debt and make monthly payments to your family. The downside is that you risk having family members say “no” to your petition and making them uncomfortable.

By the way, by researching and comparing the best debt settlement services in the market, you will be able to determine the one that meets your specific financial situation. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

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