Personal Debt

What is Credit?

Credit is the provision of resources (such as granting a loan) by one party to another party where that second party does not reimburse the first party immediately, thereby generating a debt, and instead arranges either to repay or return those resources (or material(s) of equal value) at a later date.

Debt results when a client of a credit card company purchases an item or service through the card system. Debt accumulates and increases via interest and penalties when the consumer does not pay the company for the money he or she has spent.

The results of not paying this debt on time are that the company will charge a late payment penalty and report the late payment to credit rating agencies. Being late on a payment is sometimes referred to as being in "default". The late payment penalty itself increases the amount of debt the consumer has.

Your Options

Debt Settlement
When the debtor and creditor agree on a reduced balance that will be regarded as payment in full.
Debt Management
An unique strategy developed to help a debtor manage their debt. This strategy is usually developed and implemented by an outside company or organization on behalf of the debtor.
Debt Consolidation
Debt consolidation entails taking out one loan to pay off many others.
Bankruptcy
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors.