With more and more people receiving foreclosure notices (one in every twenty-three in Nevada, the highest rate in the US), it makes sense that so many people are worried about how to repay debt. For people who are fortunate enough to have at least some income coming into the household, there are some clear options that will not only provide some (or full) debt relief, but will also allow them to remain in their home.
Although none of these options are considered ideal for many, they do provide those with the ability to make debt payments options that may become inevitable anyway.
Debt Settlement
Arguably the most popular option for people who run into high credit card debt, debt settlement provides an effective way to repay debt when the income has been reduced and bankruptcy is not an option that the borrower wants to pursue. With debt settlement, the lender (or credit card company) agrees to write off a portion of the debt and the borrower agrees to repay the balance. For many, this reduces the monthly debt load sufficiently enough to meet all other obligations.
Chapter 13 Bankruptcy
This "new" option provides debtors with the ability to repay debt that is secured only. This is like wiping the credit card and other unsecured loan slate clear and focussing solely on the mortgage and other secured loans, like a car loan or lease. The downfall here is that any missed payments could result in the lender forcing full chapter 7 bankruptcy on the borrower.
These two options provide people who are feeling the stress of higher foreclosure numbers and lower employment prospects with the potential to repay debt legitimately without having to worry about losing their essential assets -- the house and car(s). When the means exist to repay debt, these two options provide a simple way to stay ahead and in control.
