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Debt
relief is a parameter which cannot be standardized for all customers.
The credit situation would depend from customer to customer. There are
two major kinds of debt.

1. Secured Debt ?
2. Unsecured Debt

Secured
debts are those which have a lien attached to it. The creditor can sell
the lien and recover the money. There is a security attached to such
loans. For example:

1. Auto loan ?
2. Mortgage

The
second kind of loan is the unsecured loan. This loan does not have any
security attached and this is the reason why the loan comes at a very
high interest rate.

1. Credit Card ?
2. Personal Loan

People
have taken multiple loans in a period of time. Many have taken multiple
card loans and many have taken car loan and mortgage. Non payment to
all these accounts makes a situation complicated. Therefore we can
understand that these kinds of situations are unique and need unique
solutions.

It has
been commonly seen that a settlement procedure is used for settling
unsecured debts. In this procedure it has been seen that the customer
tries to settle multiple card debts one at a time. The personal loans
are also settled by this process.

A
consolidation is done for secured as well as unsecured loans in which
the customer is dealing with multiple debtors at the same time. In this
method the customer pays one single check and gets the consolidation
company to pay the debtors.

Therefore
we can see that each debt condition is unique and needs to be analyzed
and handled differently. The customer needs to see if he has a single
or multiple debts. The second thing he needs to watch out is that if he
has secured or unsecured debt. Only then he would be able to
rationalized if he needs a settlement or a consolidation.

Each customer is unique and so are his problems. Each problem needs to be dealt with a rational which delivers the best result.

Getting
out of debt through a debt settlement process is currently very popular
but you need to know where to locate the best performing programs in
order to get the best deals. To compare debt settlement companies it
would be wise to visit a free debt relief network which will locate the
best performing companies in your area for free.

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Article Tags:
Unsecured Debt