I am very well aware of the fact that debtors want mental relaxation from huge amount of debt they owe and the pressure that creditors have maintained over them. People want to exercise fast debt relief options so they can get relief as soon as possible and begin living a peaceful and well balanced lives. The two major fast debt relief options are liability negotiations and filing insolvency. Both of these two options are considered as the fastest way to eliminate debt because these methods help people get out of debt problems instantly. A debtor has to make the right decision of whether to go for liability settlement or insolvency. If the decision they make comes out to be wrong, they will fail to achieve objectives such as mental freedom and peace.
I will differentiate between the two fast debt relief options and you can then make your final decision. Debt settlement is a process in which the debtor negotiates with the creditor and achieves discount in the amount of loan that needs to be repaid. The discount they are provided is 60 to 70% on the original loan amount. The debtors even ask for some extra time to repay the loan and the interest rate charged on the remaining amount of loan is even very low. Due to all these characteristics, making repayment of the loan becomes easy and fast.
The pros of using this option is that this option leaves a positive remark on the debtors credit report as he paid some part of the money back and did not get away by not paying the entire loan amount through filing for insolvency.
In bankruptcy, the debtor files a legal law suit claiming that he has no money to pay back the loan amount and he wants complete relief from the amount of money he owes. After bankruptcy process comes to an end, the credit report of the person using this option gets badly damaged as the report states bankruptcy filed. Due to this, creditor hesitate in providing loans to these debtors in future and even if they provide loans they charge higher interest rates and give very less time to repay the loan.
The creditor does not only face inability to achieve loans, he even faces difficulties in acquiring jobs as employers hesitate in providing employment to those who have filed for bankruptcy. This is because employers consider bankruptcy as unethical and equal to stealing somebody's money. Even if they provide employment they pay very less wages and get extra work out of the worker. The employers manipulate the financial conditions of an employee.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. 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.
No comments:
Post a Comment