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byAlma Abell

When you look at the term debt relief and look for its meaning, you will find that its basic definition is the dissolving of a predetermined amount of debt that you have personally incurred. To many people, especially those that don’t delve deeper into the definition of debt relief, it’s easy to think that debt relief in Lancaster County PA is just another form of bankruptcy. However, debt relief is not bankruptcy and there are many benefits to debt relief that far exceed the benefits of bankruptcy.

If you’re considering bankruptcy, you are considering a process that is going to be rather lengthy, is going to cost you money and is going to negatively affect your credit in a significant way. While bankruptcy can be a very effective way of relieving you of a large portion of your debt, helping you start off with a clean slate, the negative repercussions of a bankruptcy can follow you for 5 to 7 years as the bankruptcy will continue to show up on your credit report for this amount of time. This can inhibit you from buying cars, getting mortgages or secured personal loans in the future.

Debt relief is a bit different. Debt relief deals directly with your creditors to help negotiate lower interest terms and a reduction of your current debt. While you may not be able to use the credit cards that you or your debt relief representative has negotiated for lower rates on, once the accounts are paid off, this sort of payment structure will read positively on your credit report rather than the negative connotation of a bankruptcy.

There is no question that in some cases, bankruptcy is what is needed. If you have a wealth of different creditors and none of these creditors seem to be willing to work with you or your appointed debt relief representative, then bankruptcy may be your only option. However, it shouldn’t be anything other than an option of last resort. For more effective ways to deal with personal debt, debt relief in Lancaster County PA is one of them. By satisfying your creditors in terms of reduced interest rates and reduced debt, you can salvage a respectable credit score without the long-term effects that bankruptcy can have on your personal finances.