Debt Relief Without Bankruptcy – Secrets To Pain-Free Debt Relief

Debt relief without bankruptcy has almost become the holy grail. As more and more people struggle to manage their financial affairs, it is becoming increasingly clear that options such as bankruptcy can do more harm than good. Since you are already sold on the idea that bankruptcy is to be avoided, this article will outline 2 strategies that can act as substitute.

Substitute #1 – Debt Settlement
This option is not as scathing on your credit record as bankruptcy and provides almost instantaneous relief. The process works through negotiating a reduction in the total amount owed to the creditor. This negotiation, depending on how well it goes, can see write-offs in excess of 70% of total debt. Once this amount is confirmed as a write-off, you never have to worry about paying it again. Such is the power of debt settlement.

Substitute #2 – Debt Consolidation
Unlike option number one, this does not result in an immediate reduction in debt. Instead all debt is rolled into one, and a restructured payment plan is ironed out. The main benefit of consolidation is that it can help people who are seriously behind in payments, and who also have the debt collectors calling. The process is handled by a consolidation company who charges a premium, but it is scarcely very expensive, and usually rolled into the debt itself.

Moving forward with your debt relief strategy should be based on your personal circumstance. Debt relief without bankruptcy is possible with either of the two options mentioned above. What’s more, the companies that specialize in these areas can easily be found on the internet. Most won’t charge upfront for a consultation and are way cheaper than their offline counterparts.