Debt Elimination Program – Debt Settlement or Debt Management?
A debt elimination programs can help you to get rid of debt. These programs may include: debt settlement programs, Debt Management Plans, chapter 7 bankruptcy and chapter 13 bankruptcy. Although a debt elimination program can help a consumer to become debt-free in a short period of time, it will have negative effect on your personal FICO score.
Debt Settlement Program
Debt Settlement Program can be a great debt solution for some consumers. This type of debt solution allows a consumer to clear excessive credit card debt during a period of 12-36 months. Moreover, this debt elimination program can write-off up to 50% of the amount owed through a negotiation process with creditors. Debt Settlement Program involves offering creditors a monthly payment so a debtor will need some disposable income available to contribute towards the agreement.
A Debt Management Plan (DMP) is a debt elimination program based around making monthly payments more affordable. During this debt elimination program excessive credit card debt is managed rather than written-off. Although DMP can take longer to clear debt, it does help in terms of affordability and preventing further contact from collection agencies.
I am not a believer in using debt elimination or debt settlement companies. They are not regulated like attorneys who are licensed by a state to practice law. Please call attorney Marc P. Feldman at (973) 267-7555 for a free initial consultation.