Bankruptcy Vs Debt Settlement - Avoid the First, Find a Legitimate Debt Settlement Program

Falling into debt with credit cards, medical bills or loans can be frightening, and it can be easy to keep putting off looking for debt solutions. Some people are unaware of the options that are open to them to pay off debt and believe that they may have to declare themselves bankrupt. However, this is a drastic solution and you may wish to find legitimate debt settlement companies online to provide you with information on eliminating debts.

Once you begin to look for debt settlement companies online you will find that there are numerous websites proclaiming to be able to reduce your debt or in fact eliminate it. While it is possible for companies to reduce your debt by around 30% to 70%, you cannot get all of your debt struck off, so be wary of any company who promises to clear 100% your debts.

Also, be wary of company’s fees. While it is understandable that they will charge you a percentage or small fee for their services, some companies may ask for a great deal of money from you. The fee is usually added into the sum of money that you pay each month towards clearing your debt. Look for a debt relief company that comes with lows fees, and who provides free debt help information to begin with.

Legitimate debt relief companies will usually provide a free consultation to help you decide which option might be the most suitable for your circumstances. You may wish to consider very carefully any company that suggests bankruptcy straight off without offering you other debt solutions first.

Finally, any legitimate debt settlement companies should make you aware of the importance of sticking with any plan you choose and continuing with the agreed repayments. For instance if you were to lose your job you still have to continue with your relief plan while actively seeking employment.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.