What alternatives to bankruptcy are there for unsecured debts like credit cards, medical bills, personal loans, and repossessions?
The main options that consumers turn to before bankruptcy are Consumer Credit Counseling and Debt Negotiation. Depending on your circumstances, either one can be an appropriate choice for you. Credit card counseling is often compared to Chapter 13 bankruptcy because they both involve restructuring your debt into one consolidated payment. In a credit counseling debt management plan (DMP), your payment is lowered, as well as any interest or late payment fees. Debt negotiation, also known as debt settlement or debt reduction, aims at reducing the debt you owe, not just the interest. Due to the fact that you can in some cases save as much as 40 to 60 percent off your balances, it offers much greater potential for debt relief. Like debt counseling, it offers one low monthly payment and shortened timeframe for becoming debt free from credit cards. I am really in over my head with credit card debt. Which replacement bankruptcy option do you suggest? For consumers who are extremely overextende
