- Learn about Credit Counseling and Debt Settlement.
- Let your credit concerns and financial health determine what program is right for you.
- No single debt relief option is perfect for everyone.
Debt Relief Options: Compare what is best between Consumer Credit Counseling Services and Debt Settlement and which may be the best choice for your debt relief needs.
Ten years ago, a consumer struggling with unaffordable unsecured debt would likely have only two options — hiring a Consumer Credit Counseling Service (CCCS) or filing for bankruptcy protection. Over the past decade, however, two important changes have occurred that affect financially distressed consumers’ choices in finding debt relief.
First, a new approach to resolving consumer debt, called “debt settlement” or “debt negotiation,” has become widely available as an alternative to CCCS and bankruptcy. (The terms “debt settlement” and “debt negotiation” are used interchangeably by the industry and mean the same thing.)
| Debt Relief Options |
|---|
| Background |
| CCCS History |
| CCCS Pros |
| CCCS Cons |
| Debt Settlement History |
| Debt Settlement Pros |
| Debt Settlement Cons |
| Cost Comparison |
| Alternative Solutions |
| Conclusion |
Second, a law enacted by Congress in 2005 made receiving relief from the bankruptcy courts much more difficult for many Americans. The new law placed stringent restrictions which greatly limited who qualifies for discharge of debts under Chapter 7 bankruptcy and it established onerous new filing requirements on petitioners and their attorneys.
The changes in the bankruptcy code have led consumers to turn to either CCCS or debt settlement firms seeking a solution to their debt woes. Unfortunately, due to the questionable, and sometimes fraudulent, claims some companies make online and in radio and TV commercials, it can be difficult for consumers to make an informed decision about which debt relief option they should choose. This article discusses the similarities and differences between CCCS and debt settlement. It explains the benefits, drawbacks, and overall costs of each option, with the goal of helping you better understand the available debt relief programs, so you can decide which plan is the best choice for you and your family.
Next: Consumer Credit Counseling Services History
Rivervale, NJ | March 18, 2013
March 19, 2013
Upland, CA | January 02, 2013
January 03, 2013
Some debtor property is exempt from judgment-creditor actions. Under Michigan law, a debtor can use an exemption of $3,250 for vehicles, and $52,950 for a homestead if the homeowner is elderly or disabled. Also, under federal law, Social Security benefits are exempt from judgment-creditor garnishment. It is safe to assume the pension is exempt also.
If one of the vehicles you mentioned has a Blue Book value of $3,250 or less, the judgment-creditor cannot use a writ of replevin or similar legal action to seize the vehicle. The judgment-creditor can place a lien on the property, but if one does so that is not a concern until your mother sells the property. When she sells the property, she can use part of the sale proceeds to pay-off the lienholder.
What to do? I have an incomplete view into your mother's finances including the amount owed each creditor, so the smartest course of action would be for you to make an appointment for your mother with a bankruptcy lawyer. She needs to discuss her situation in detail with someone who can ask probing questions, and explain her options. I am not suggesting bankruptcy is the right answer here, but a Michigan bankruptcy lawyer will share more detail than I have in these four short paragraphs.
February 10, 2012
February 10, 2012
February 10, 2012
February 12, 2012
Clovis, CA | February 06, 2012
February 06, 2012
Canton, MI | December 30, 2011
December 31, 2011
September 27, 2011
September 27, 2011
Herndon, VA | November 01, 2011
November 01, 2011
Regarding your credit score, you need to work on creating a strong credit history.
September 10, 2012
September 11, 2012
Los Angeles, CA | August 22, 2011
August 22, 2011
Saint Joseph, MO | July 10, 2011
July 11, 2011
Readers: I welcome your constructive thoughts and ideas on how Anita can resolve this issue.
Wilmington, DE | August 19, 2011
Cumming, GA | May 28, 2011
May 31, 2011
Norfolk, VA | May 06, 2011
May 09, 2011
If you were carrying a lot of unsecured debt that had high interest rates, I would suggest you look at a credit counseling program. However, with the amount of debt you are carrying, that route is not likely to offer much relief.
As you are concerned about your ability to maintain your payments, once your income fluctuates, maybe it makes sense to look into refinancing your car note. If you can extend the term, that could bring down your monthly payment. Another possible solution would be to apply for a credit card that allows you to transfer balances to it. This only makes sense if the interest rate is lower than your current debts and the fees that the new card charges are not excessive. If things get to the point where you feel you will not be able to maintain your payments to your creditors, make sure to call them. You may be able to work out a lower monthly payment that will keep you from defaulting and harming your credit rating.
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