As a consumer who is unable to meet my monthly minimum credit card payments because maybe I have loss my job or have had my wages reduced or there has been a medical emergency.
I started to investigate difference methods and face the fact that I need to ask questions and make the correct decision – because walking away was not and is not the right thing to do.
The most often methods discussed for consumers in trouble are:
• Consolidation Loan
• Home Equity Loan
• Consumer Consulting Services
• Bankruptcy
• Debt Settlement
In guess in a prefect world, the first three programs would help me rearrange my financial situation. Since I would have money or equity in my residence to qualify for a loan or I need assistance in understanding how to better manage my money.
However, that is not the case. Bankruptcy should always be the last step when considering how to get out of debt. As a consumer, I do not want to walk away from my debt but somehow pay them back to the lenders. Bankruptcy needs to be discussed with an attorney, who can explain the legal process and its affect on the consumer.
Therefore, debt settlement was a more managed approach to resolving my financial situation. Debt settlement established a set timeline and monthly payment amount which I would afford based upon using an estimated negotiated settlement program. My debt settlement company used a conservative estimated of what the lender might be willing to settle the account for.
This is not a quick fix however the one lesson learned during this financial downturn was to tighten my belt and save for the future. I should use my credit cards only when I can actually repay each month what I spend on the card. I have learned my lesson.
