Debt Resolutions

Written by Jill Morrison
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Figuring out how to resolve debt problems can be a difficult task. Different strategies are available for varying types of debt issues. Whether debt is accumulated from credit cards, loans, medical bills, school bills, or other methods, debt relief options can be found. Depending on the amount of debt involved, debt can either be resolved individually or with the help of another party. Counselors are available to provide advice and information about options for resolving debt.

Debt Resolution Information

Debt resolution is a common desire among Americans because debt is so common. In fact, debt levels continue to rise with each passing year. According to studies by the U.S. Census Bureau, average debt amounts have nearly doubled in the last decade. For extreme cases of debt, debt consolidation is the first step. After debts have been combined into one amount, debt settlement or debt consolidation loans may be considered.

Credit card debt is the most common form of debt and it now averages at about $8,500 per household. For smaller amounts of debt, debt balances can be transferred to zero or low interest credit cards. Credit cards with special, low interest rates may only last for a designated amount of time, so people should make sure that they can pay off their debt total in the allotted time. For cases of extreme credit card debt, debt negotiation or settlement is usually the best option.

More than 1.5 million personal bankruptcies are filed each year because many Americans feel it is the only option when they cannot pay off their debts. Bankruptcy should only be considered only when no other options are available. Filing can be very damaging because bankruptcies may stay on credit reports for as long as 10 years. After bankruptcies are filed, it is usually extremely difficult to qualify for credit without high interest rates and fees, making it hard to rebuild one's credit rating. What can seem like a good way out often becomes a financial "catch-22." All other debt resolution options should be considered before bankruptcy.

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