Options For Clearing Debt Cullman AL

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

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