Debt Relief Considerations
If you have a spouse or a partner, it is very important to review each of your situations separately, to ensure that you both require the proposed solution. This is true for any debt relief related situation. Meaning debt settlement, credit counseling, bankruptcy, whatever.
At Debt Relief A La Carte, I see this all too often. When consumers call us, for their free debt relief consultation, and they’ve shopped around, it’s rare when any of the previous debt relief providers they have consulted with, separated their situations to ensure that participation by both consumers was necessary. And the sad reality is, often times it isn’t.
If your family is struggling financially, the last thing you need to do is create a situation that constricts your abilities even more. It can be extremely advantageous to just have one spouse or partner participate in their debt relief solution, whether that be debt settlement, credit counseling, or bankruptcy.
This way your family may have the ability to utilize credit, should a need to do so arise. And furthermore, that potential access to credit may be able to expedite your partners debt solution process and greatly increase it’s chances of success.
If you’re currently in a situation where you’re considering a debt relief solution, there are a few things to consider.
- How much of the debt is in both of your names?
- Are either of you just an authorized user on these accounts?
- How much debt is in your name?
- How much is in your partners?
Is it lopsided enough to where it would make sense for just one of you to participate in debt relief?
For example: If a couple has $30,000 in credit card debt, but $20,000 of it, is in just one of your names. It would probably make sense for you or your partner, not to ruin their credit by settling their debts.
Debt Relief Prevention
I’m big on debt relief prevention, and a great way to minimize your exposure to your family is to keep as many accounts as you can separate. If life is good and you’re not thinking about debt relief, be preemptive. Planning this out is just as important as estate planning, retirement planning, etc. Sit down and think practically about how to distribute your families debt. And, instead of sharing the responsibility via a joint account, go the authorized user route.
The reason for this, is if your family ever encounters a difficult financial situation, you will have more flexibility in respect to how it effects and you, and in turn, how you’re able to deal with it.
Some things to consider when deciding how to distribute your debt, is who is the debt more dangerous too? Do either of you have a job, a license, or a business that is dependant on your good credit? Out of the two of you, who is more collectable? In the event that something should happen, it is to your families advantage to have the majority of the debt with whoever is least collectable.
So, this way you won’t be as attractive to collectors and you will have a easier time gaining cooperation for settlements or payments plans in the event that you seek a debt settlement program or other debt relief option.
How to Find This Type of Service
At Debt Relief A La Carte, these are things that we always take a look at, regardless of the service we’re conducting. Whether, you’re on time with your payments and participate in our debt relief prevention service, or if you posses the ability to settle your debts right away and participate in our debt settlement services, we always consider your future and possible allocations of your debt.
Stay tuned next week for part 4 of this series.
Debt Relief A La Carte, Inc
Debt Settlement Advice for Debt Settlement Companies and Consumers – Part 3 – Families and Couples by Guest Post
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