DEBT CONSOLIDATION AND DEBT MANAGEMENT, PART 2

Should you not have enough income or decide you don't want to pay what you owe through a debt management plan, I suggest you consider seeing an attorney. Armed with your budget from the credit counseling agency, you can discuss legal options with a lawyer. I advise consumers to consider bankruptcy only after all other options have been explored. The main reason is that a Chapter 7 bankruptcy, although sometimes necessary, will negatively affect your credit the most and stays on your credit report for 10 years. A Chapter 13 bankruptcy is very much like a debt management plan but considerably more onerous to you and your creditors. Your attorney can discuss debt settlement, bankruptcy and other options with you such as legal challenges for debts beyond the statute of limitations and more.

My experience is that not everyone sees things as I do. So if you want to check out a debt settlement company and make your own decision, I suggest you begin at the Federal Trade Commission's site. Additionally, the Association of Settlement Companies and its members are trying to establish standards for debt settlement firms. Avoid companies that charge a large upfront fee, and check your local Better Business Bureau to see if the debt settlement company is in good standing. Be sure you read and understand all the terms of any agreement before you sign anything, and be leery of any company that is not willing to answer any and all questions concerning the agreement.

A last word on your credit score. I suggest that you focus on resolving your debt problem in the way that is best for you. Your credit score should be a secondary consideration. Credit can be rebuilt once you have this behind you and are on a firm financial footing