If you have a mortgage, it might be in your best interest to refinance. Talk to your lender to see if there are low-cost options available to you. Going to a credit union for a mortgage refinance is also an option, because credit unions often have lower interest rates than banks do.

debt relief optionsCredit counseling services are available for many people who want debt relief. These services allow you to pay your debt back in full over a time period of 4 to 5 years. Your credit score will be affected for the time you are enrolled in the service.

Debt settlement is another option. With debt settlement, a company will negotiate with your creditors to pay back a certain amount of what you owe on each bill. This is often used by people who cannot afford to make monthly payments on an ongoing basis. Debt settlement will have a greater negative effect on your credit score than credit counseling services will.

Bankruptcy is also an option when it comes to debt relief. Chapter 7 and Chapter 13 are the two that most individuals use. It’s important to hire the services of a qualified bankruptcy attorney if you choose this option. You will need to do exactly what the court says in order to have your debt discharged. A bankruptcy discharge will stay on your credit report for 7 years.

Take your time before deciding which debt relief is right for you. No matter what your financial situation is, know that help is available.