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Debt Restructure

Debt restructure, or debt negotiation, sometimes the process of negotiating with a creditor or debt collector to pay less than the full amount owed. By paying less than the full balance you owe on an account to satisfy the debt

Pros

Skilled strategists and negotiators are working on your behalf. Provide immediate payment relief. Be free of enrolled debt in under 4 years

Cons

Prevents the use of enrolled credit cards. Could adversely affect your credit worthiness. May temporarily increase the amount owed due to the accrual of fees and interest

Bankruptcy

A legal process. All your assets are evaluated and used to pay off your debts. Chapter 7 and Chapter 13 are most common options used by individuals circumstances, once bankruptcy is complete, you are relieved of the debt obligations you had before filing bankruptcy

Pros

Debt obligation could be cleared. Most creditors are barred from attempting to collect on debts. Under some circumstances, process takes only 3-6 months

Cons

Significant, long-term damage to credit. Loss of all credit cards. Chapter 7 can be difficult to qualify for

Minimum Payments

Making the minimum payments on your credit cards is a strategy that merely prolongs your debt. Minimum payments should only be used as a temporary strategy to pay off your credit card debt you are able to become debt free in a shorter period

Pros

Consistent monthly payments. Gradually reducing debt. No negative impact on your credit

Cons

High monthly payments. High-interest rates. High levels of debt can hurt your credit over time. Very long pay off time frame. Could pay 2 to 3 times the amount originally charged