by: Marcus J Ware

We have all experienced getting so far in debt we don't know how we're going to get out. There are many different options that you have for quick relief with benefits and consequences. You can look at the overview and see which option is the best option for you.

Consolidation

1. Benefits

• Lower monthly payments

• No worry of paying multiple debt collectors every month, pay only one agency

• Percentage of debt charged by consolidation company

• Costs for Loan

• Cost for counseling or negotiation

2. Negatives

• Appears on your credit like bankruptcy

• Requires you to get another loan

• If you own a home loan will be tied to your equity

• Takes between 5 and 10 years to pay off the loan

• First few years no big change in debt reduction

• Does not always prevent creditors from future legal collection action

Bankruptcy

1. Benefits

• Costs between $700-$3000

2. Negatives

• On credit report for ten years

• Finances made public record

• No assets are allowed with Chapter7

• Creditors can file adversarial hearing that costs $3000

• Credit severely damaged

Debt Relief Program

1. Benefits

• Payments can stop as soon as the program starts

• Credit Repair available after a short time

• Good credit repair options available

3. Negatives

• Usually only credit card debt and unsecured signature loan