Debt Consolidation One Option
When it comes to handling your debts, there are many options
available to you. You can easily look into eliminating all of
your debt with a Chapter 7 bankruptcy; you can go into a payment
plan Chapter 13 bankruptcy; you can do a debt consolidation; you
can do a debt settlement; you can do a combination of the last
two; you can keep paying on it exactly the way that it is; or
you can close your eyes and hope your debt will go away. Ok, so
maybe that last one is not really an option, but there are
people who will try it to see if this is one that they can get
away with. The idea behind this list is to show you that there
are options that you can use to get your debts paid off if you
have the money to pay them off or down – and there are ways of
eliminating them completely.
In order to retain a good credit rating however, you are going
to want to look at either keeping them where they are or doing a
debt consolidation as every other option is going to hurt you.
Now, nothing hurts you as much as the bankruptcy does, but still
– you get the idea. A settlement will harm your credit, as the
paid off bill gets reported to your credit agency as settled –
which means that you did not pay off the total amount of your
debt. The debt consolidation will take all of your bills and put
them under one loan – this means that you might have needed some
help getting it all together – but you did and you paid all of
your cards off in full. Creditors like to see you paying your
bills in full.
You can also leave them exactly where they are – which means
that you will probably take longer to pay them off than if they
were in a debt consolidation program and you will probably pay
off more than if you did the debt consolidation loan – but at
least your credit will reflect that you paid your bills in full.
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