Different Debt Relief Options

Debt Consolidation is a way of getting rid of all your credit card bills. The idea is to get one single loan which will pay off all your existing loans. This means you only have to make one payment instead of paying off several loans. This is one way of saving money, because you will reduce the amount of interest you pay.

Debt forgiveness is a form of financial forgiveness that is applied to student loans, medical debts, and other types of loans that are considered unsecured. Debt forgiveness occurs when a lender takes the initiative to cancel a borrower’s debt obligation.

What is the difference between debt forgiveness and debt consolidation?

The  terms debt cancellation and debt relief are often used interchangeably, but they are not the same thing. Debt cancellation is when the debt is erased completely. Debt relief is when the borrower receives a reduction in the amount of the debt, which may or may not result in the debt being paid off.

What should I do if neither of these options work for me?

Debt problems are as unique as finger prints, and everyone’s situation may call for a different solution. Debt consolidation and debt relief may not  be the best solution for every financial hardship.  Another solution is to consult with a Dallas bankruptcy lawyer about your options. An experienced bankruptcy lawyer can examine your financial situation and explain all of your debt relief options, and the risks or benefits associated with each.