What Are Debt Elimination Programs?
Up to your eyeballs in debt and looking for a way out? Programs designed to handle excessive personal debt tend to fall into four general categories. With the credit world evolving daily, due to new legislation and decreasing consumption, this is an ideal time to isolate yourself from the turmoil that’s not likely to lessen anytime soon. Check out the debt elimination programs listed below to find the one that fits your circumstances. 1. Debt Settlement features a reduction of debt of up to 50% and repayment is usually short term-typically 12 to 36 months. The lower balance should allow for you to meet the monthly payments. Unfortunately, there is an immediate negative impact on both your credit score and your tax obligation. But if your credit score is already in the tank, this might be the way to go because it allows you to rebuild your credit quickly with consistent, on-time, payments. The IRS however, views the forgiven portion as income and, as such, taxable. 2. Debt Consolidation
