Credit Counseling:

Interest rate of the clients can be reduced and is debt free in 3 years using credit card debt relief help in the form of credit counseling. Credit counseling gives the assurance that debtor will get rid of debts within 3 years, using principles of credit counseling.When debtors join the credit counselors, then Creditors start receiving the payment from credit card detb relief firm and they will not contact their debtors anymore.

Advantages:

• Debtors can save money by paying lower monthly payments on high interest credit cards Late charges and over the limit fees are eliminated.
• Only one single payment need to be made to debt relief companies rather than making regular monthly payments to creditors Debt Consolidation.

Home Equity Loan:

Debtor can take home equity loan in order to make payment for credit card debts. The interest rate charged on credit card debts is much higher than the interest rate charges which are levied on

The time span provided for repayment of home equity loan is longer and interest rate is also low,but the time span provided to pay credit card debts is quite short and interest rate levied on credit card debts is quite high .

Advantages:

One simple monthly payment to credit card debt relieve firms a home equity loan offers lower interest rates and long time span to pay which is easily repayable by debtors.

Unsecured Debt Consolidation Loan

Debt Consolidation is one of the most important solutions used by consumers to save high payments on credit card debts .In debt consolidation, banks pay off the debts owed by the consumer and in turn consumer repays the payment back to the bank with interest rate .

Advantages:

One single monthly payment Banks pays off all the debts owed by the consumer and consumers have to repay the amount back to the bank with longer span of time and with lower interest rates.

Bankruptcy:

Chapter 7:

Debtors request the court to erase all their pending debts completely .In return they have to make a turn over all their non-exempt property to the trustee appointed by the court, who in turn sells all the property of the debtors to pay back the due amount to the creditors.

Advantages:

• All collections activities must cease once upon filing.
• Bankruptcy can stop all the wages from being garnished.
• If debtors have no assets, then they don’t have to pay anything to be considered as debt free.
• Can remove some liens from their properties.
• Debtors can make a fresh start for his credit report