3 types of manual credit card said - get out of debt

If you are in debt and are looking for help through a third party and are trying to avoid bankruptcy, you are basically going to be left with 3 forms of credit card help. Depending on your financial situation, you will probably find that one of these forms of debt relief will be more suitable than the others, but it is a good idea to look at everything with an open mind before making a selection.

Debt consolidation loans used to be the standard way of consolidating your debts, but things have changed. You can still use this option if you are credit worthy and can find someone to give you a loan. But you must realize that the loan will be secured with your home and if you default on the loan, your home could go into foreclosure. It has been shown that many people that take on these types of loans will have credit card debt again within a year. A debt consolidation loan is not an option that should be considered for debt relief.

Debt settlement has grown in popularity as the economy has gone through its down turn. This is an option that allows you to settle your debts for less than what is actually owed. This is done through a negotiation process with the lender. You can do this on your own or hire a debt settlement service to do it for you. Services can be pricey and this debt relief option will ruin your credit. Another thing you have to understand is that you will be taxed on the amount of the debt that is forgiven. This debt relief alternative is less than desirable and many people that sign on with a debt negotiation company do not complete the program.

A nonprofit credit counseling company is your third option. This is also the most desirable of the three alternatives. This is a debt consolidation program that does not require a loan, good credit or home ownership. You will have to make only one payment each month to the credit counseling company and they will take care of paying your lenders. Your interest rates will be reduced, the fees eliminated and you will emerge from this program being credit worthy. This program takes 3 to 5 years to complete.

Debt can be a major invasion to your life and it needs to be eliminated. These are the options that are available to almost anyone. You are the only one that can solutions that will work for you. Get a price for the freedom of debt today!