While credit companies are under no obligation to negotiate your payments, the best debt consolidation companies may be able to consolidate your debt to a single, monthly payment or negotiate to lower the total amount of debt that you owe.For more information on the best debt consolidation loans and credit management options, have a look at our articles on debt consolidation.When you start pursuing debt management options, you may get many mixed messages from those in the debt relief industry.
When a settlement is reached, the funds that you have been setting aside go toward paying your creditors and negotiation fees.
These programs take around two to four years to complete and negatively influence your credit.
Bankruptcy: This should be seen as a last resort as it negatively affects your credit for many years.
With bankruptcy, you officially declare that you cannot pay your debts.
To pursue bankruptcy, you must qualify and complete the entire process, including pre-filing and post-filing counseling.