Is A Peer To Peer Site Or Debt Company Better?
If you have fallen way behind on your bills and need some help consolidating your debt then you have a couple choices to make. The first one is to try to contact your creditors and work a payment plan with them. The second place to try is a debt consolidation company. The third place to try is by using a peer to peer lending site.
Trying to work with your creditors on a one one basis is always the first route you should take. Staying in communication with them keeps them informed about your situation. Doing this will improve your chances of having some of your debts lowered or forgiven with a lower interest rate. If you can achieve this then good for you. Do not get upset if this does not work. There was a contract signed by yourself that you should have known about. The company is in business to make money not lose it.
If that does not work you need to start looking at other options. Now you should look at a debt consolidation company. They will take a look at all of your debts and let you know which ones they have a chance of lowering for you. They will in turn contact your creditors and start negotiating on your behalf. Many lawyers run these types of companies and are experts in negotiating. They are not free and expect to earn a flat fee or a percent of the amount of debts forgiven. If they succeed in lowering your debts your credit report will show it as so. Be prepared to see a drop in your credit scores but be happy knowing that you are probably going to be paying a lot less back. One of the more successful companies is called Cura Debt.
If dinging up your credit report is out of the question then a peer to peer lending site could work. How these sites work is a group of people come together looking for a place to invest their money. You make a listing of yourself describing what you need the money for. These people bid at different interest rates and amounts until the amount you asked for is reached. When the amount is reached the interest rate at which you first listed yourself up for starts going down as people bid against one another. You want the bidding to keep on going as it lowers your interest rate. After the bidding is done you will be given the money and have to pay it back over a set time period which is usually three years. Your monthly payments back to the loan get divided back to the people. It is a win win scenario as you are getting a low interest loan to pay your creditors back with and normal people can earn a return on their investment. A popular peer to peer site is Lending Club.
All of these will help you with your debt problems. Each has their risks and rewards and some are better than others. When it is all said and done just remember to never get yourself in this situation again.
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