Your Debt Options

Even if you are overwhelmed by debt
bankruptcy doesn't have to be your only option.

There are many options when it comes to debt. It is important that you understand your options, and realize the impact each choice may have.

Debt Settlement

Debt Settlement is a reasonable and sensible choice for consumers. Settlement involves negotiating with your creditors so they accept less than the full amount of the debt owed to them. At Key Debt, we can help settle your total outstanding credit balances substantially. In most cases, negotiating the total balances rather than just reducing interest payments is the best option for regaining control of your debt.

Do Nothing

Unfortunately, most consumers become paralyzed under the weight of pressing debt and end up doing nothing, which can lead to accumulated debt and even more stress.

Bankruptcy

There was a time when bankruptcy was the only option for people mired hopelessly in debt. Pressure from collection agencies often forced people to resort to bankruptcy. The bad news, according to CNN Money, is that even bankruptcy can stay on your credit report for up to 7-10 years. Your bankruptcy discharge can also appear in public court records for up to 20 years potentially affecting future plans such as purchasing a home or vehicle, finding employment, obtaining insurance or getting security clearance. And worst of all, depending on the type of bankruptcy you file the courts may force you to pay your creditors anyway! In most cases, you should only consider bankruptcy as a last option. Anyone considering bankruptcy should consult a bankruptcy attorney.

Debt Consolidation Loans

As stated in The Consumer Reports Debt Consolidation loans do not reduce your debt; this kind of loan simply combines all of your debt and attaches a lower interest rate. Bottom line, all you are doing is exchanging one debt for another at a lower interest rate. A risk is that when applying for a debt consolidation loan you typically will be asked to secure the loan against some form of collateral, usually a house or car. The problem is that this transfers your unsecured debt to a secured loan, which puts your personal possessions at risk if you fail to make payments. These loans also extend the period of time it will take to get out of debt. A home equity loan can be spread out over as much as 30 years. This is not an ideal solution.

Credit Counseling

Many people not aware of other options turn to credit counseling when they become burdened by debt. Credit counseling takes all your debt and lumps it into one payment, but typically lowers the interest rate only 1-2 percent. These programs typically take 8-10 years to eliminate debt, and usually do not significantly lower your monthly payment. The consumer advocacy group Consumers for Responsible Credit state that credit counseling programs work like collection agencies, working on behalf of the creditors who in turn receive a large percentage -- often 12-15% -- of the amount collected. It is important to note that credit counseling programs achieve only about a 20% completion rate, on average.

Of all the Services mentioned here, Debt Settlement has the shortest time of involvement. Settling your debt and restarting your life can begin today - right now.

Regain your financial freedom and call now 800-370-8918

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Key Debt Services does not provide legal, tax or investment advice. If you need legal advice, legal expertise or court filings, you must seek the advice of a licensed attorney. Individual results may vary.