1. Obtain a Debt Consolidation Loan as an Alternative to Debt Settlement
All things considered, a debt consolidation loan is certainly not the worst thing you could do; however, to qualify, you must own a home, have some property or have some significant assets to pledge as collateral for the loan. Without that, a loan isn’t even an option at all. Further, borrowing from Peter to pay Paul is now way to get out of debt. You’re still going to have to pay back the money to someone regardless of whom it is.
2. Use a Consumer Credit Counseling Service as an Alternative to Debt Settlement
You may or may not be aware, but often CCCS is a non-profit organization that is funded in-full, or in-part, by contributions from major creditors themselves. In their programs, consumers typically make one monthly payment to the consumer credit counseling agency and they, in turn, disburse those funds and pay each of your creditors for you.
In such a program, typically, your minimum required payment requirements are not met and you’re still reported in a negative manner to the 3 major credit reporting agencies. This means you will pay back everything you owe, plus interest, and still suffer major damage to your credit. On the bright side, a consumer credit counseling agency will usually be able to get your interest rate lowered and stop the harassing collection calls.
3. File Bankruptcy as an Alternative to Debt Settlement
In most cases, bankruptcy is always used a last resort option due to the fact that it can ravage their credit report for up to 10 years. Additionally, bankruptcy is also a matter of public record, indefinitely, for anyone that wishes to know. Further, during a bankruptcy filing, the bankruptcy court requires you to appear in Federal Court for at least one hearing and possibly many more. In addition to this requirement, come types of bankruptcy require a court-appointed trustee to control and oversee the assets of the estate while in bankruptcy.
4. Do Nothing as an Alternative to Debt Settlement
Doing what have always done and expecting different results is simply madness. Doing nothing, when in debt, is not typically a practical solution; however, technically, it is an option none the less. An instance where doing nothing might actually benefit you would be if you were unemployed and had no assets a creditor could track; in this case, in effect, you would be “judgment proof” and your creditors would be limited in their options until you begin to work again.
5. Debt Settlements for Less Than Full Balance
Often, debt settlement is a very appealing means by which to resolve debt related matters. Heightened by the state of our current economy, and if dealt with properly, most creditors will agree to accept less than full balance to settle outstanding debts. Typically a reputable and experienced debt settlement company can assist in such matters and handle all the details leaving the stress to someone else.
