Credit Card Debt
Has credit card debt taken over your life? Are you finding it harder each day to meet your financial obligations without relying on credit cards? If so, you're not alone. In Missouri as well as across America, many consumers are also in the midst of their own personal debt crisis caused by any number of reasons, like unemployment, medical bills, or unexpected family issues. Fortunately, there are several debt relief options that can help consumers who need a proven way to reduce or pay off debts at an accelerated pace, without filing for bankruptcy, which is the debt relief option with the most serious and long lasting impact on personal finances.
If you perform a search of popular debt relief options, you will likely come across the following: debt consolidation through credit counseling, debt management, debt counseling, or even debt settlement. However, while none of these options make debts magically "go away", these debt relief solutions can help to lower payments and actually help consumers get out of debt at an accelerated pace. This can not ony result in substantial savings, but also help consumers get on a path to become debt-free. With debt consolidation, consumers can take their multiple high-interest credit cards and other unsecured debts (medical bills, store charges, gas cards, etc.) and combine them all into a single, more structured, and more manageable payment plan made to a credit counseling agency. The agency, in turn, will distribute payments to creditors who agree to accept proposals that results in these debts being placed a debt management program.
Debt settlement as a form of debt relief that works differently. Whereas debt consolidation or debt management helps you pay off all of your debt but save money through lower interest rates, the goal of debt settlement is to help you "settle" with creditors for significantly less than what you originally owe. Both options have helped many consumers reduce or pay off their debts, and have become popular alternatives to filing personal bankruptcy - which can have a more damaging and longer lasting impact on one's credit.
To find out how debt relief can help you or to see if your debts qualify, answer a few, simple questions to get your free debt relief analysis and savings estimate. Start now.
Debt Reduction with Consolidation
Paying off debts spread across multiple credit cards can be a daunting task, requiring a diligent consumer who can keep track of different due dates, interest rates, and other fees. That's why for many consumers dealing with multiple credit card and unsecured debts, debt consolidation has become a popular option. As noted earlier, debt consolidation allows you to combine your debts into a single, simpler, and more structured payment plan made to a credit counseling agency. How does this work? After reviewing your financial situation, credit counselors typically develop a strategy to help you pay off your debts; this involves asking credit card companies to reduce interest rates or waive their late fees and other penalties. The aim is to simplify the payment process, consolidate your debts, and put you on a repayment plan that is more structured, more lenient, and at a pace that you can afford.
How Debt Negotiation or Settlement Works
For many consumers who are falling several months behind in their credit card payments, particularly those with higher credit card debts (typically $20,000 or more), debt settlement may be a viable debt relief option. Debt settlement may provide consumers the opportunity to settle with creditors for a significantly reduced amount of their original debt, potentially helping consumers save a substantial amount of money. And, while settling your debts typically has a negative impact on personal credit, the impact to your personal credit is not nearly as long lasting as a personal bankruptcy.
However, before enrolling in any settlement program, understand the potential risks: As the term suggests, credit card companies are certainly not legally required to accept or "settle" with you. In many cases, you will be advised to set aside funds over time and then later use those funds to make a reasonable settlement offer or a "lump sum" amount.
Typically, consumers, in order to save up money to accumulate a settlement fund, begin to default on their credit card payments. In an effort to collect from struggling consumers, creditors may threaten or take legal action against those who default on the terms of their credit card agreements. Again, as noted earlier, consumers who default on the terms of their credit card agreements and fail to make monthly payments, wil normally see their credit score decline. In addition, it's important to note that any money saved as a result of a debt settlement is subject to taxation. However, despite the tax implications and the potential impact to credit scores, debt settlement remains a popular alternative to bankruptcy - which can have an even more serious and long-lasting effect on your personal credit.
State of Missouri Financial and Debt Assistance
While the state of Missouri does not offer grants or programs designed to help consumers pay debts, it does offer a variety of programs for those who are low-income or need a helping hand. For example, the Temporary Assistance Program provides aid to needy families with children, helping them get access to food, health care, and other basic necessities. The state also has agencies that can help with housing concerns and help you avoid foreclosure, if you are a homeowner at risk or struggling with monthly mortgage payments.
"Is Debt Relief Right for Me?"
When you're struggling with credit card debt, it can be extremely frustrating finding the right debt relief program since there are so many choices available. That's why it's so important to fully explore all your debt relief options - such as credit counseling, debt management, debt consolidation and even debt settlement.
The bottom line, if you are overburdened with high interest credit cards and other unsecured debts, there is help available. Debts will not magically disappear, so the smart move is to start exploring your debt relief options, get help from the experts, and make a commitment to paying down your debts on an accelerated program. Debt does not have to be a way of life. You can gain control of your debts and get on the path to financial freedom, but it all begins with you deciding you don't want debts to control your life! Find out how debt relief can help you by requesting a free debt relief analysis and savings estimate. Start today.