There are different liability relaxation methods but the best two debt relief options for 2010 are credit counseling and debt negotiations.
These two debt relief options for 2010 are considered as the most effective methods of eliminating huge amount of liabilities.
These methods do not only help people lower the burden of debt, these even aid people in getting mental relaxation and a way to think clearly so the3y can make their future better.
The decision whether to go for liability negotiations or credit counseling depends on the current financial situation of a debtor and how he wants his future to shape up.
Liability negotiations are one of the debt relief options for 2010, according to this method the debtor negotiates with the creditor and gains a discount in the amount of loan that needs to be paid back.
The discount that a debtor gets is some where near to 10 to 70% of the original loan amount.
The discount level depends on the negotiations that take place between the creditor and the debtor.
Debtors even try to get an increase in the loan repayment time period and they even get relaxation in the interest rate charged.
The benefit of this method is that the debtor now has to pay a small fraction of the amount he owe and the creditor gets back some part of his money back.
The downside of this option is that the credit ratings and reports of a debtor get very negatively affected and he faces difficulties in acquiring loans and jobs in future.
On the other hand in credit counseling the all the loans of a debtor are combined and a new figure of the loan is made.
The relaxation that a debtor receives by practicing this method is in the amount of interest rate he pays.
The interest rate is discounted by 25%.
The benefits of using this method are that now debtor does not have to worry about multiple monthly payments, instead he makes one payment each month.
The credit counseling services even help him pay the loan back.
The credit report of a debtor does not get very badly affected if he exercises this method.
If a debtor has nothing at all and has no money and is on the verge of filing bankruptcy, such a debtor should go for debt settlement.
If a debtor can make payments and pay his entire loan amount then such a debtor should go for credit counseling.