Debt relief is a parameter which cannot be standardized for all customers. The credit situation would depend from customer to customer. There are two ...
Debt relief is a parameter which cannot be standardized for all customers. The credit situation would depend from customer to customer. There are two major kinds of debt.
1. Secured Debt 2. Unsecured Debt
Secured debts are those which have a lien attached to it. The creditor can sell the lien and recover the money. There is a security attached to such loans. For example:
1. Auto loan 2. Mortgage
The second kind of loan is the unsecured loan. This loan does not have any security attached and this is the reason why the loan comes at a very high interest rate.
1. Credit Card 2. Personal Loan
People have taken multiple loans in a period of time. Many have taken multiple card loans and many have taken car loan and mortgage. Non payment to all these accounts makes a situation complicated. Therefore we can understand that these kinds of situations are unique and need unique solutions.
It has been commonly seen that a settlement procedure is used for settling unsecured debts. In this procedure it has been seen that the customer tries to settle multiple card debts one at a time. The personal loans are also settled by this process.
A consolidation is done for secured as well as unsecured loans in which the customer is dealing with multiple debtors at the same time. In this method the customer pays one single check and gets the consolidation company to pay the debtors.
Therefore we can see that each debt condition is unique and needs to be analyzed and handled differently. The customer needs to see if he has a single or multiple debts. The second thing he needs to watch out is that if he has secured or unsecured debt. Only then he would be able to rationalized if he needs a settlement or a consolidation.
Each customer is unique and so are his problems. Each problem needs to be dealt with a rational which delivers the best result.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free. Free Debt Advice(http://www.freedebtsettlementadvice.com)
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