Already helped 12554 people to start a debt free life

No obligation FREE counseling

With proper help you too can

  • Reduce your monthly payment
  • Reduce interest rates
  • Waive off late fees
  • Have single monthly payment
  • Reduce collection calls
Name :
E-mail :
Phone :
Debt :
 
Call (Toll Free)

(800) 530-OVLG

Or
Chat LiveOr Call me now

Need quick help

(Provide us your phone no. we will call you back.)
Full name: *
Phone: Ext.


What happens after you opt for free counseling?
Privacy Policy
Home » Debt Relief » Compare debt relief options

Compare different debt relief options

A recent estimate by the Federal Reserve discloses that consumer debt in the U.S stands at $2.40 trillion. This high level of debt has profoundly affected the financial health of American households. Millions of American families are experiencing financial distress due to overpowering credit card bills. Unemployment, stagnant income growth and wage cuts (due to the recent economic meltdown) are making the situation more critical for the consumers.

Many debtors get confused when it comes to choosing a suitable debt relief program. Also, a lot of debtors believe that insolvency is their only choice and they file bankruptcy too early. But you should always consider other debt relief programs before making a decision. Have a look at the following chart for a better understanding of the debt relief processes:

1. Shall I get rid of annoying creditor calls?

Debt settlement Debt Management Debt Consolidation Bankruptcy
Possibly. The debt relief company will approach the creditors to stop all collection activities. However, the creditor has legal rights to contact you. Possibly. The debt relief company will approach the creditors to stop all collection activities. However, the creditor has legal rights to contact you. Possibly. The debt relief company will approach the creditors to stop all collection activities. However, the creditor has legal rights to contact you. Yes. When you file bankruptcy, the creditors cannot contact you for pending debts.

2. Can the high interests on my debts be reduced?

Debt settlement Debt Management Debt Consolidation Bankruptcy
It is possible to reduce the total interest payable to the creditors. Definitely. The debt relief company negotiates with the creditors for a lower interest rate. Yes. The debt relief company negotiates with the creditors for a lower interest rate. Also, the debt relief company can find you a low interest consolidation loan. The interest payments can be eliminated in bankruptcy.

3. Will I be able to save on the principal amount?

Debt settlement Debt Management Debt Consolidation Bankruptcy
Definitely. Your debt can be reduced by more than 40%. No. No. Most of your secured and unsecured debts are discharged in Chapter 7 bankruptcy. With Chapter 13 bankruptcy, your debts can by reduced through an affordable payment plan.

4. What about the fees payable to debt relief firms/law firms/attorneys?

Debt settlement Debt Management Debt Consolidation Bankruptcy
Fee structure of Debt relief firms and law firms may vary. The fee structure may include a success fee on the savings. Fee structure of Debt relief firms and law firms may vary. The fee structure may include a one time representation fee, a success fee on the savings and monthly fees. Fee structure of Debt relief firms and law firms may vary. The fee structure may include a one time representation fee, a success fee on the savings and monthly fees. You would need to pay the filing fee and attorney fees/fees charged by the law firm.

5. Can I maintain privacy while eliminating my debts through debt relief programs?

Debt settlement Debt Management Debt Consolidation Bankruptcy
Absolutely. Absolutely. Absolutely. Bankruptcy is a public record. Anyone can find out that you have filed bankruptcy.

6. Do I need to pay extra taxes if I enroll in a debt relief program?

Debt settlement Debt Management Debt Consolidation Bankruptcy
You may have to pay taxes on the amount forgiven. No tax consequences. No tax consequences. No tax consequences.

7. Can I eliminate tax debt through debt relief programs?

Debt settlement Debt Management Debt Consolidation Bankruptcy
You can settle income tax debt through an agreement with the IRS called "Offer in Compromise". Not possible. Not possible. You can discharge tax debt in bankruptcy completely or partially under certain circumstances.

8. Can I discharge secured debts through debt relief programs?

Debt settlement Debt Management Debt Consolidation Bankruptcy
No. No. No. Yes.

9. How can a debt relief program hurt my credit rating?

Debt settlement Debt Management Debt Consolidation Bankruptcy
Creditors report the account as "settled". This considerably affects your credit rating. But it is possible to rebuild your credit score within a reasonable time period. Minor damage is caused to your credit as you default on the original payment plan. Minor damage is caused to your credit as you default on the original payment plan. Bankruptcy stays on your credit report for 7-10 years. It will blemish your credit report seriously.

10. Will debt relief programs lower my credit worthiness?

Debt settlement Debt Management Debt Consolidation Bankruptcy
Debt settlement hurts your credit rating in a major way. Therefore, you would need to rebuild your credit before applying for a loan. You would qualify for a loan with reasonable terms soon enough. You would qualify for a loan with reasonable terms soon enough. Bankruptcy can lower your credit score by 200 points. Therefore, you would need to wait for at least 2 years before applying for a loan.

Debt relief programs can play an important role in getting you out of debt. Therefore, keep the above points in mind and make sure you choose the option which is most suitable for you. If you are not too sure about your choices, then please call our (800) 530-6854 or fill up the free counseling form. Our debt counselor will help you to take the right decision.

Related Articles

How much can you save?

Monthly payment you can afford
($)

Know us better

Newly joined attorneys

Learn More..

Success Stories

Saved 55% with
National Credit Adjusters
Learn More..

Client feedback

Latest Questions

  1. Is there any differe...(2)
  2. Can the bank sell of...(1)
  3. How the reduced amou...(1)
  4. Can i do probate mys...(1)
  5. Can bankrupty be fil...(3)
  6. Is it possible to di...(1)
  7. Post-bankruptcy disc...(1)


OVLG on Facebook
1,642 people like OVLG.
Susan
Lawyer
Jessica
Blasco
David
Amber
Maria
Brain
OVLG on Twitter Follow Us
9,145 Followers

Latest Articles

Popular Articles

Latest from OVLG Blog

Online Payment Solution

Find OVLG on :

Google+

The services of Oak View Law Group (OVLG) and its affiliates may not be available in all states. OVLG along with its Of Counsel attorneys may also be referred to as "Oak View Law Group", "we", "us" or "the firms".
© Oakviewlaw.com

Disclaimer: The contents of this web site are not intended to establish an attorney-client relationship, provide the reader with legal advice, or substitute for legal advice from an attorney.

  1. The debt settlement program typically lasts between 6 months to 4 years time.
  2. At least 30% of the debt amount per creditor needs to be accumulated in the trust account for OVLG to give the creditor any settlement offer.
  3. Not all creditors or debt collectors will accept a reduction in the balance, interest rate, or fees a customer owes such creditor or debt collector.
  4. Pending completion of the represented debt-relief services, the customer's creditors or debt collectors may pursue collection efforts, including initiation of lawsuits.
  5. That the use of the debt-relief service will likely adversely affect the consumer's creditworthiness, may result in consumers being sued by their creditors, and may increase the amount owed to creditors as a result of the accrual of additional fees and interest;
  6. Savings a customer realizes from use of a debt-relief service may be taxable income.
Page generated in 0.30 seconds on 24 May 2013 at 15:37:18