What Option Is Better For Me? Credit Card Consolidation Vs Debt Settlement Services

Filing bankruptcy is not a better solution to credit card debts. There are many other best bankruptcy alternatives that can help people in regaining the financial freedom without hurting the credit scores. Debt settlement and credit counseling are the two best bankruptcy alternatives.

Although people get relief through filing bankruptcy in a short time but it’s bad after effects are of long term. For many years, a person feels himself as financially paralyzed. For this reason, legitimate bankruptcy alternatives like credit counseling and debt settlement can save people from worst financial crisis.

If some one has only two cards then there is no need for the consolidation. It is only advisable if some body has a debt of more than two cards.

Consolidation is not a permanent relief, it is temporary. No doubt the credit card companies have been paid, from there you have a relief, but you have brought yourself a new loan which is still to be paid.

Debt settlement provides elimination in the debts up to 50% or even more. For getting a successful deal, a person has to hire a professional well-seasoned attorney. These people charge their fees for providing settlement services but it will increase your chances of getting more elimination.

Training and education about credit management is provided in credit counseling. This option does not provide any reduction in debts as settlement does. A person who wants to save his credit history and wants to pay his debts without any elimination and reduction should try this best bankruptcy alternative. In this program, different workshops and lectures are offered to people.

Mostly these counseling programs are run by the government and non-government agencies. Military agencies are also providing counseling services. As millions of people are buried under the stacks of debt, many organizations offer counseling free of cost.

This is because if all these people will go for filing bankruptcy then credit card business will ruined in a few years. There were millions of bankruptcy filings that were filed in the year 2010. This number is increasing day by day.

Harris Smith is a personal finance writer interested in home equity line of credit┬áDon’t Miss Out!

Debt Relief – What Should You Do If You’re A Victim Of Fraud

If you’re a victim of fraud or misrepresentation, you won’t be responsible for the debt. However, it’s important to know what your options are once it occurs. General consumer protection laws (UDAP) may let you cancel the contract, stop paying, or request a refund. If you never paid money towards the debt or are being sued by a creditor or collection agency, you can use the UDAP laws as your defense.

Another option would be to consult with an attorney about suing the seller. But before you initiate legal proceedings, send the seller a demand letter explaining the problem and ask for your money back. Make copies of all original letters and be sure not to forward originals of any supporting documentation like the contract, receipts, or canceled checks. If you don’t receive a response from the seller or get what you want, your letter along with the supporting paperwork should be used as evidence in your lawsuit. If the amount is low, you may be able to do it yourself in small claims court. For larger amounts, you’ll probably wants the assistance of an attorney. Check with your state’s laws for specific requirements.

If you don’t get results with your initial letter, you can also file a complaint with the appropriate government agency. Check with your local or state prosecutor’s office for a referral to the appropriate agency. Most businesses devote more attention and care to complaints generated from a higher governing authority. The employee assigned to handle your complaint will most likely have the power to negotiate a resolution or refund.

Regardless if you decide to follow through with litigation, it’s always a good idea to report the issue to the appropriate government agency. As more complaints filter in overtime, the government agency will most likely take action against the business. This would save other future consumers from being ripped off.

The best method to get a government agency to take action is by completing the agency’s standard complaint form. If you only submitted a copy of the demand letter you mailed to the merchant, the agency will not take action without allowing the merchant an opportunity to correct the problem. When you submit a formal complaint with an agency, they’ll issue a formal investigation requesting the business respond to the allegations.

Make sure you include copies of originals of all receipts, agreements, warranties, service contracts, ads, and other supporting evidence. If you have a log of your phone calls showing your efforts to work out the problem, be sure to include these. Be sure to make copies of all paperwork submitted to the agency. You should also send the business a copy of your agency complaint.

Tired of being a Christian drowning in debt? Break free with Christian credit debt counseling or by using these potent Christian debt relief tactics.