Other Debt Options

These days, getting debt relief is no easy task! For most Americans, seeking debt options has become a necessity. Debt related problems often prove to be an uphill battle. In order to make the process more bearable, Debt Regret provides debt options to help you achieve debt relief.

Debt Regret understands and appreciates the situation that you are going through. Our dedicated staff can and will help educate you about the option that is best for you.

Option 1 - Debt Settlement

Debt Settlement is one option. Today’s consumers require the most efficient way possible to resolve financial hardships. Debt settlement programs provide their customers with a viable solution to an otherwise complex problem. By helping settle your current debt, our program provides you with a way to regain control of your finances within a reasonable time frame. Debt settlement is fast becoming the only true option to financial recovery outside of bankruptcy!

Option 2 - File Bankruptcy

Filing bankruptcy is another option. Unfortunately, thanks to the new bankruptcy law, debtors will now have even more hoops to jump through when trying to file for bankruptcy. Some of the new requirements include pre-filing consultations, with an approved consumer credit counseling service, in an attempt to force debtors to pay their obligations outside of bankruptcy. Additionally, in order to file bankruptcy, a debtor needs certification from that credit counseling agency before they are able to move forward.

The new law also includes an income-based "means-test" that determines which debtors possess the ability to re-pay some of their debts. Those who don't pass the means test will be forced into a Chapter 13 bankruptcy rather than a chapter 7.

In addition to everything already discussed, the reform act requires the following: additional documentation from the debtor; the waiting period between Chapter 7 filings has been increased from 6 to 8 years; and a debtor's final discharge in bankruptcy is now subject to completing a course in financial management first.

Additionally, even if you do qualify, a bankruptcy will remain on your credit record for 7-10 years and seriously affect your ability to be approved for credit. Even after a bankruptcy has been removed from your record, you are still required to disclose it on forms and applications; even applications for employment. Additionally, certain types of bankruptcy can require a court-appointed trustee to control and oversee all aspects of your personal estate. Bankruptcy can have an adverse affect on your life and lifestyle long after the legal matters are over. This is not a decision to be taken lightly. Bankruptcy is an option that should only be explored as an absolute last resort to solving your financial problems.

Note: Debt Regret is not a law firm nor can we provide legal advice or any other type of legal advocacy. For bankruptcy related questions concerning your situation, you must contact a licensed attorney in your state.

Option 3 - Debt Management

Debt Management companies, which have now become known as Consumer Credit Counseling companies, were originally established to help credit card company's recover revenue from clients that were falling behind on their bills. Choosing to use a Consumer Credit Counseling service can have negative effects on your credit that last up to 10 years. These services are also considered Chapter 13 Bankruptcy by most lending institutions. The bottom line is that most Consumer Credit Counseling companies work for your creditors, not you. By using their services, you will end up paying back everything you owe, plus interest. These companies do not always provide financial relief they promise, as consumers usually find out.

Option 4 - Debt Consolidation

Debt Consolidation is another option. Borrowing from Peter to pay Paul is no way to get out of debt. It is however, the premise behind debt consolidation programs. Debt consolidation programs provide consumer loans based on items of equity. For example, a home equity loan is used to "combine" your debts into a single monthly payment, which can often take 20 to 30 years to repay, depending on your  financial situation. This may seem like a viable solution in the short term, but missing payments on a secured loan could cause you to lose your home and any other collateral you pledged. Many people who decide to go the debt consolidation route find themselves worse off than they originally were. In most cases, it is not a good idea to exchange your unsecured debts for secured ones.

Option 5 - Do Nothing

While doing nothing is an option, it is not a practical one. Unfortunately, a significant number of consumers do just that. If you wish to improve your financial situation, action must be taken. Do you realize that if you are paying on a credit card with an interest rate of 25% or higher, it is impossible to pay off your debt by making minimum monthly payments? If your financial obligations outweigh your financial means, and you are ready to do something about it, contact the experts at Debt Regret!