Posted on July 13, 2009 at 11:39 pm i just recently got into debt and the collector calls have started poring in. i owe $26,000 all in all. i know debt consolidation is right for me because i am not that much in bad shape yet, i know baknruptcy is not for me. could you please tell me what the different types of debt consolidation are so that i can narrow my options down and see what is best and fitting for me and my situation. thank u

Posted on July 14, 2009 at 1:43 am Well one option that you have given your current situation is debt settlement. Forty to sixty percent of the 26k can be cut down and your creditor will consider the debt as "settled in full,"  while the remainder of the amount will be forgiven. It also takes around a year+ before the settlement would be paid off. If anything this is the fastest debt relief option that you have

Posted on July 14, 2009 at 2:13 am A year is too soon for me. i might have to pay bigger amounts each month. Can u extend the repayment period for the settlement

Posted on July 14, 2009 at 2:14 am PLs understand i want to pay the bill but i don't want it fast, i want it slow & steady, need to feed my children also

Posted on July 14, 2009 at 3:19 am Jupiter Saturn, I think what LallyPop means is that the settlement period can last from a year or so. More specifically, the settlement period lasts from 12-48 months. That may also  depend on negotiations that were made between the debt arbitrator and the creditor.Another type of debt consolidation is credit counseling. Here, a certified credit counselor will meet with you regarding your financial situation and discuss how to create a budget plan and how to take care of your debts. Your credit counselor, if need be, may enroll your account on a debt management plan, or a DMP. You'll be making one payment to the credit counselor, who in turn will distribute the payments to all your creditors. The credit counseling service will also reduce your interest rate to 15% (if I'm not mistaken), and fees and other charges may also be stopped once you're on this program. While you're under the DMP, your accounts also stand a chance of going back to current status. One other type of debt consolidation is obtaining a debt consolidation loan, wherein you'll simply be getting a low-interest loan in order to pay off your other loans.

Posted on July 14, 2009 at 3:20 am Chapter 13 baknruptcy is also a form of debt conslidation

Posted on July 14, 2009 at 3:56 am how is that possible Franny and Zooey, doesnt bankruptcy completely eradicate all forms of debt?

Posted on July 14, 2009 at 4:04 am Well Chapter 13 bankruptcy allows the debtor to make repayments on their loans for a period of 3-5 years. It also works similarly like a debt management plan in that a person who's filed for that will be making regular monthly payments to a bankruptcy trustee. The trustee in turn will distribute all the payments to all the debtor's creditors. The debtor also has immunity set against his creditors due to the automatic stay that bankruptcy has granted.

Posted on July 14, 2009 at 10:25 am What are the types of debt consolidation? Here are the main types: 1) Unsecured debt consolidation loan. 2) Secured consolidation loan. 3) Credit counseling. 4) Debt settlement. 5) Chapter 13 bankruptcy. 6) Transferring high interest balances on to a 0% or low interest credit card.

Posted on July 15, 2009 at 2:29 am how do you do balance transfers on a credit card??? is that even possible? why didn't i think of that before??!!