Even Best Debt Consolation Is Not Easy or Painless

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Even the best debt consolidation or debt settlement are not an easy or painless way out of your debt…it is hard. Debt settlement isn’t “pennies on the dollar,” as you hear in the ads, it will cost you big-time and for a long time in ways you might not even imagine right now. If you are over your head in debt–really over your head!—the U.S. Federal Trade Commission (FTC) says that bankruptcy might be an option for some debtors:

“Declaring bankruptcy has serious consequences,” says the FTC, “including lowering your credit score, but credit counselors and other experts say that in some cases, it may make the most sense. Filing for bankruptcy under Chapter 13 allows people with a steady income to keep property, like a mortgaged house or a car, that they might otherwise lose through the Chapter 7 bankruptcy process. In Chapter 13, the court approves a repayment plan that allows you to pay off your debts over three to five years, without surrendering any property. After you have made all the payments under the plan, your debts are discharged. As part of the Chapter 13 process, you will have to pay a lawyer, and you must get credit counseling from a government-approved organization within six months before you file for any bankruptcy relief.”

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