Debt Reduction - Why is Debt Settlement Better Than Selling Your Assets?
Debt consolidation is very useful if you have a dozen credit cards and want to combine all the debts so that you can manage debts better.
However, when you're not in a position to repay eight out of the twelve credit cards, then consolidation is not going to make much of a difference.
Consolidation and others such a short term remedies are useful only if you have sufficient funds to make the repayment.
If you have lost your job and if you are finding it difficult to meet your essential expenses, then you will need a debt relief solution that will bring your debt down drastically.
Selling your asset is one option.
However, there are many practical and financial problems in such an approach.
For starters, if your buyers find out that you are desperate to sell your assets, they will try to bring down the price to the lowest amount possible.
In such a scenario, even a sale of your asset may not be sufficient to repay all your debts.
Secondly, your decision to sell your assets may be considered as proof that you are going to opt for bankruptcy.
Your lenders may panic.
They may take legal action against you and this will bring your private and personal debt problems out in the open for all to see and comment upon.
If you approach your lender and inform them that you plan to sell your assets, you will be encouraged to convert your existing debt into a secured debt so that they earn more interest.
Your lenders will have a very strong hold on your financial position.
In such a scenario, you certainly cannot insist that you will make the repayment after selling the asset.
If your lender threatens you with legal action, which they are entitled to, then you will end up in a very difficult position.
Hence, rather than opting for this solution which sounds very good in theory but is full of flaws and problems in practice, you should get in touch with your lender and indicate that you are contemplating bankruptcy.
When you point out that even the sale of assets is not going to help, you will be surprised to find that the lenders are eager to offer discounts to help you overcome your problem.
The assets you own will not provide a buffer against bankruptcy if you do not plan your finances right.
Good planning, smart implementation of your plans will work best if you make sensible use of the web to find the right settlement service provider.
However, when you're not in a position to repay eight out of the twelve credit cards, then consolidation is not going to make much of a difference.
Consolidation and others such a short term remedies are useful only if you have sufficient funds to make the repayment.
If you have lost your job and if you are finding it difficult to meet your essential expenses, then you will need a debt relief solution that will bring your debt down drastically.
Selling your asset is one option.
However, there are many practical and financial problems in such an approach.
For starters, if your buyers find out that you are desperate to sell your assets, they will try to bring down the price to the lowest amount possible.
In such a scenario, even a sale of your asset may not be sufficient to repay all your debts.
Secondly, your decision to sell your assets may be considered as proof that you are going to opt for bankruptcy.
Your lenders may panic.
They may take legal action against you and this will bring your private and personal debt problems out in the open for all to see and comment upon.
If you approach your lender and inform them that you plan to sell your assets, you will be encouraged to convert your existing debt into a secured debt so that they earn more interest.
Your lenders will have a very strong hold on your financial position.
In such a scenario, you certainly cannot insist that you will make the repayment after selling the asset.
If your lender threatens you with legal action, which they are entitled to, then you will end up in a very difficult position.
Hence, rather than opting for this solution which sounds very good in theory but is full of flaws and problems in practice, you should get in touch with your lender and indicate that you are contemplating bankruptcy.
When you point out that even the sale of assets is not going to help, you will be surprised to find that the lenders are eager to offer discounts to help you overcome your problem.
The assets you own will not provide a buffer against bankruptcy if you do not plan your finances right.
Good planning, smart implementation of your plans will work best if you make sensible use of the web to find the right settlement service provider.
