Free Self Help Debt Elimination

Learn About Free Self Help Debt Elimination, And What It Can Do For Your Debt

What is unsecured debt, and what can you do about it?

There are several different kinds of debt. 'Unsecured debt' is debt is debt (say-credit card bills) that are independent of property; it's unlike a secured debt (say-a mortgage) which grants the creditor the right to secure your property in case you default in order to satisfy your obligations. In the case of unsecured debt, a creditor's only remedy under the law is to sue you and obtain a judgment. If yours debt is unsecured, there are several things you can do about it; each has their costs. Bill consolidation can help you get your bills under control. If you choose to go with bill consolidation, you may find that, between the interest on the loan or the 'points' you pay, the cost of consolidation loans adds up. A bill workout can help you eliminate your debt. If you choose to go with a bill workout, you may elect to retain a professional's services.

What's the difference between bill consolidation, and bill workout?

'Bill consolidation' simply means that that you reorganize your debt. You may reorganize your bills with the assistance of a credit counselor, or you may take a bill consolidation loan to help you get a handle on things, but you intend to pay your debts to your creditors in full. A debt workout is different, in that it's a negotiated settlement of your credit card debt in which you may agree with creditors that you'll only pay a percentage of the debt. As just an example, with the credit card company to which you owe $10,000, you may come to an agreement that you'll pay only $4,000.

Is this the kind of settlement I can negotiate for myself, or do I need to hire a debt reduction professional?

Debt reduction professionals, including bankruptcy attorneys as well as debt management firms, are professionals who can initiate a settlement on your behalf. You can do it yourself if you know how to negotiate a debt settlement, and what a proper debt settlement should be. When negotiating with credit card companies, each creditor will have standard operating procedures which you must follow.