Credit counseling is a way to reduce credit card debt or medical debt, but it is not always guaranteed that a company or organization can negotiate or settle your debts with the creditors in terms of medical, credit cards and other unsecured debt .

When it comes to climbing medical bills & credit cards, it is important to understand that three viable options and 1 worst-case scenario option:

1), direct negotiations with the creditor (hospital, doctor's offices, credit card company)
2) refinancing your debts to pay (value of the house must be greater than the existing loan)
3) The specialists work with unsecured debt (credit-counseling firms)
4) Declare Bankruptcy

When you negotiate with your creditors, it is important to do this, once you believe that you are not the payments. Negotiations with a collection agency is very difficult, as compared to working with a hospital, practice, or the credit card companies.

Refinancing your home is the last resort. With property prices falling you do not want to be the remaining shares or cushion you have in a piece of real estate. Refinancing may also be beneficial to pay off medical debt and credit cards if the interest rate on a mortgage is less than that on your current loans. But this should be a last resort for you as a refinancing expire cost you more money in the long term because you are usually the payment of a loan back over 15 or 30 years. You should check the option 1 o'clock-3 o'clock before they used to refinance (if refinancing).

Your third option is to work with unsecured debt specialists based on medical debt and credit card debt. Many companies in general, you can reduce your debt or the amount you owe creditors for a small fee, because they are experts in debt negotiations. It is important to ensure that a company or organization that you work with is on the government approved credit counseling or the U.S. Department of Justice's. Use our links to get an approved Federal Credit counseling agencies by state. In addition, many local authorities, universities, local governments, credit unions, and even your company can help with debt counseling.

Your last option is to declare bankruptcy. Bankruptcy can be nasty and leave you with nothing left to your name and in other cases it may be appropriate. However, usually for a period of 10 years, your credit report is tarnished, so you are not for car loans, mortgages and credit cards. Furthermore, some things you can not avoid bankruptcy are student loans, child support and back taxes. Furthermore, the information on your bankruptcy will be made available to the public from federal, state and / or local authorized. To summarize, it is not a good option.

Credit Counseling is a viable option if you do not have the time to negotiate with the creditors directly, it is important to work actively with and use your debt options 1 o'clock-3 o'clock before 2. If they are successful, you can count on a good way for the settlement of your debts and, where appropriate, manageable payments every month. Becoming debt free is not easy, but with the right advice and help, it is certainly possible.

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