- Credit counseling is a practice geared toward educating individuals on ways to manage their debt. You can usually participate in this service online or by phone.
- Debt consolidation is the act of combining your debts into one low monthly payment. This method is commonly used for credit card and student loan debt.
- Debt settlement is the process of having a lawyer negotiate down your debt with creditors to a much lower payback amount. This is often used when you owe at least a few thousands dollars in debt, have been behind in a few payments and have a small amount of money available for quick settlement.
- Bankruptcy is usually filed when one is in dire financial circumstances. Debt is either fully erased or very affordable monthly payment plans are set up to pay off debt while protecting assets.
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