Only by observing the different methods available to assist people in getting out of debt, can one find the consumer debt solution that is best for their individual circumstances. The programs available today include credit counseling, debt settlement, debt consolidation, and bankruptcy. You can also visit https://www.empireonecredit.com/credit-counselling/ to get the best debt solutions online.
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Filing for bankruptcy should only be used by consumers as a last resort debt solution. Bankruptcy will adversely impact a consumer's credit rating for up to 10 years. It can also stand in the way of finding employment, qualifying for most types of state licenses, and, in most cases, renting an apartment. In addition, there are attorney fees and court filing costs that must be paid.
Any consumer considering a debt consolidation loan as a solution to their debt problems needs to think hard and long before opting for this method. To qualify for a consolidation loan, many people rely on the equity of their homes as collateral.
If a person with a home equity consolidation loan should suffer a major illness or suddenly lose their source of income, they may be in a position of defaulting on the loan and their home could be at risk. Additionally, most debt consolidation loans carry a term of 10 years.
Credit counseling as a solution to consumer debt sounds like a good deal initially since the company will negotiate directly with the credit card companies to lower interest rates and payments. However, any outstanding balances and interest must be fully paid off. The consumer may save on additional interest, but the owed debt must be satisfied.