May 14, 2011 | 
Author If you are in debt and looking for credit card settlement, there are options available to you even in you are a renter or are a homeowner with bad credit or no equity in your home.
Debt Consolidation Programs
Credit Counseling: As an alternative to filing for bankruptcy, many consumers are turning to credit counseling agencies for help. You can expect to meet with a trained financial counselor who will review your income and expenses and present you with a plan for debt repayment. If you agree to it, the next step is for the counselor to contact your creditors to negotiate lower payments and interest rates with them. The final step is for you to make one monthly payment to the agency who disburses it amongst your creditors.
Debt Settlement: This process involves either you or a debt negotiator contacting creditors on your behalf in an attempt to enter an agreement where you pay less than what is owed on the account provided that payment is made promptly. If the creditor agrees to accept a lesser payment, the remaining amount due is considered forgiven. Paperwork must be signed by both parties for this agreement to be legal.
Personal Loans
You may wish to seek out an unsecured loan to pay off your creditors rather than working with a third party agency. If you already have bad credit, this may be difficult to qualify for since there is no collateral being offered in case of default. The interest rate on an unsecured loan is also usually higher than other types of loans; however, the rate is lower than what you would pay on a credit card.
If you are approved for an unsecured loan, you can immediately use the funds to pay off several smaller accounts. This will increase your cash flow and give you the benefit of making only one payment per month instead of the several payments you had been making. The interest rate is fixed and the loan is for a given amount of time, which will make repaying it easier on your budget.
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