It isn’t until they begin thoroughly researching debt resolutions that most debtors realize that many of the options out there might not even be feasible for them. Unfortunately, qualifying for debt help can be just as difficult, if not harder, than qualifying for financing! One of the primary focuses that consumers should have when considering solutions to debt, is what options they are most eligible for.

Certain debt resolutions present more challenges than others. For instance, if you choose to declare bankruptcy or take out a debt consolidation loan, you will most likely encounter difficulty. Newer laws have made qualifying for bankruptcy even harder. Only consumers with extreme debt and financial hardship will be eligible for chapter seven, in which unsecured debts are absolved. Debtors may find it slightly easier to qualify for chapter thirteen bankruptcy, which is a five year repayment plan. Aside from the challenge of qualifying for bankruptcy, the costs of filing and obtaining legal advice often make this debt resolution not a feasible option for a large number of debtors.

Debt consolidation is an appealing debt resolution because it combines multiple debts into one loan, with one payment. There is usually the added benefit of a better interest rate. Debt consolidation might not offer an extensive amount of debt relief, but it is a good way to organize and manage your debt better. When it comes to this debt resolution, however, consumers encounter red tape because they are, in essence, taking out another loan. Usually people who are in need of a debt consolidation loan don’t have the credit score necessary to obtain the loan.

The good news is that there are debt resolutions that are easier for most debtors to obtain. Consumer credit card counseling services and debt settlement programs are more feasible options than filing for bankruptcy or debt consolidation. All consumers can participate in consumer credit counseling. However, this service doesn’t really offer extensive debt relief. There is a small monthly charge, but credit counselors will work to lower your payment and interest rate, providing short term relief. Although this is an easy debt help option to qualify for, it may not be the best. The short term relief that consumer credit counseling offers, often comes at the cost of lengthening the life of the loan.

If you have five thousand dollars or more in unsecured debt, and you are struggling or no longer able to make the monthly payments, then you are eligible for debt settlement. Debt settlement, sometimes referred to as debt negotiation, is a feasible option for the majority debtors, and you can even attempt debt settlement on your own. During debt settlement lending institutions are negotiated with, so you can pay off your debts for 50% less than the amount owed.

The key to finding the best debt resolution for your financial situation is to focus only on the options that you are eligible for. Among the debt help options that you qualify for, choose the resolution that will eliminate your debt effectively and quickly.

Trouble finding debt relief that you are eligible for? Consider debt negotiation, a debt help option that is easy to qualify for and can eliminate debt quickly.