Are you in such a situation that you find it impossible to pay the monthly installments on all your loans. If this is the case then you may be in need of advice and information regarding debt relief. However you should keep in mind that although debt settlement does not ruin a person the way bankruptcy does, it definitely has an adverse impact on your credit scores. This is the reason that you should try and repay your loans in full. In order to decide whether you really need a debt relief program it is best to consult professional debt counselors. Many settlement companies provide financial guidance free of cost or for a nominal fee. As an alternative you can approach one of the many debt relief networks. These networks are non profit organizations and have the debtors’ best interests at heart.
These debt relief networks analyze your current financial situation and plan a budget for you in such a way that you can repay your loans in full over a reasonable period of time. However if they realize that you are not in a situation to ever repay the loans in full, they may help you find a legitimate settlement company. If you wish to handle the debt settlement procedure yourself, they will provide you advice and guidance to do so.
Under a debt settlement program you can approach the creditors yourself or through a settlement company. The creditors then assess your current financial situation and gauge your actual paying capacity. They then decide on a payable amount which is sometimes as low as 50% to 60% of the original loan amount. The better you are at negotiating, the lower will this amount be. This negotiated amount can then be paid off as a lump sum or in the form of equated monthly installments. In order to further reduce the burden of loan you can consolidate the various high interest loans with a single low interest loan. This will also make the repayment more manageable. Another option is to offer some collateral as security against the unsecured loans and convert them into secured loans with lower interests.