Debt Relief Options
At Consumer Defense Partners, we understand that resolving debt requires a personalized approach. While debt negotiation is often the most effective solution, it may not be the best fit for everyone. Our experienced team will evaluate your financial situation and recommend the most suitable path for you—even if that means directing you to alternative solutions.
Debt Negotiation
Debt negotiation can be one of the fastest and most efficient ways to eliminate debt without filing for bankruptcy. By negotiating with creditors, we aim to reduce the total amount owed, often securing settlements for less than the original balance. Once your debt is resolved, you can begin rebuilding your credit.
Be cautious of debt negotiation companies that offer low monthly payments but enroll you in lengthy programs lasting up to 48 months. Such programs may prolong your financial distress and increase the likelihood of aggressive collection actions from creditors. While smaller payments may seem attractive, they can extend your debt issues rather than resolve them efficiently. Additionally, some companies may require extra funds regularly, which can become as frustrating as dealing with bill collectors.
At Consumer Defense Partners, we conduct a thorough financial analysis to determine an appropriate monthly contribution that aligns with your budget. Unlike many debt negotiation firms, we encourage you to make the largest manageable monthly deposit to help you become debt-free sooner. If your budget does not support a reasonable payment plan, we will advise you on alternative options, including bankruptcy.
Bankruptcy
While our goal is to help you avoid bankruptcy, in some cases, it may be the most viable option. Filing for Chapter 7 bankruptcy allows for the discharge of unsecured debt, often enabling individuals to retain most of their assets. However, this decision carries long-term consequences, including a negative impact on your credit report for up to ten years.
If you qualify for bankruptcy, you have the option to pursue that route. However, many individuals prefer to explore debt negotiation first, as it avoids the court-mandated repayment plans and the lasting effects on credit history. If bankruptcy proves to be the most suitable path, Consumer Defense Partners can connect you with an experienced bankruptcy attorney in our network to guide you through the process.
Debt Consolidation & Consumer Credit Counseling
Debt consolidation involves combining multiple debts into a single loan, often secured against your home or other assets. We generally do not recommend converting unsecured debt into secured debt, as this could put your home at risk. There are often better alternatives.
Credit counseling is another option that allows you to consolidate your unsecured debts into a single monthly payment. A credit counseling agency negotiates lower interest rates with creditors while ensuring that your debts are repaid in full over time, typically within five years. This may be a good solution for individuals who are only slightly delinquent and wish to prevent further damage to their credit score. While enrolled in a credit counseling program, collection calls typically cease. However, some clients find that the required monthly payment is not significantly lower than their original minimum payments, making affordability a challenge.
Choosing the Right Path
Our team will conduct a quick and painless financial analysis to assess your goals and budget. Based on this evaluation, we will guide you toward the most effective debt relief strategy—whether that be debt negotiation, bankruptcy, or credit counseling.
Additionally, you are entitled to one free credit report every twelve months from each of the three major credit reporting agencies. Visit www.AnnualCreditReport.com to access your report and gain insight into your current financial standing.
At Consumer Defense Partners, we are committed to helping you achieve financial stability. Contact us today for a free consultation and take the first step toward a debt-free future.
