Debt Repayment Options Comparison

When you're deciding what to do about your debt, you'll often wonder if the debt repayment option you're considering will hurt your credit score or if it requires any additional fee. This chart helps you compare the effects of six different debt repayment options - paying on your own, going through credit counseling, consolidating your debt, settling your debt, or filing Chapter 7 or Chapter 13 bankruptcy.

Secured and Unsecured Debts

The chart doesn't mention secured vs. unsecured debts. If you have secured debts and you want to keep the asset, you need to be able to keep up the monthly payments on that asset. That means you'll either have to pay on your own or consolidate the debt. You may be able to use Chapter 13 bankruptcy to catch up on the past due part of a secured debt, but you'll need to be able to make your catch-up payments under the Chapter 13 repayment plan and make your regular monthly payments.

All the solutions are available for dealing with unsecured debt.