Debt Relief Options
Are you dealing with tough financial times and searching for debt relief options to keep from falling deeper and deeper into debt? If so, you're not alone. These days, many residents of Missouri and all over America seek help with managing, reducing or paying off debts from credit cards and unsecured debts like utilities, department store charges, or medical bills. Fortunately, there are debt relief options or "solutions" that may allow you to lower your payments, reduce debts, save money, and get out of debt at an accelerated pace. These options typically include debt consolidation, credit counseling, or even debt settlement.
Also known as a "debt management plan" or DMP coordinated with the help of a debt or credit counselor, debt consolidation allows consumers with debts spread across multiple cards to combine them into a single, more structured, and more manageable payment plan made to a credit counseling agency. On the other hand, debt settlement is a more aggressive form of debt relief as settlement's goal is to negotiate, or "settle" with your individual creditors for a substantially reduced amount of the original debt. Both debt relief methods have become popular alternatives to bankruptcy - which is the typically the debt relief option of last resort and the option that can have the most serious and long-lasting impact on personal credit.
If you are struggling with credit cards or other unsecured debts or going through a financial hardship, find out if you qualify for debt relief assistance by answering a few, simple questions online. You will get a free debt relief analysis and savings quote that can help you determine which debt relief option,if any, is right for you. Start today!
"Should I Consolidate My Debts?"
Managing and dealing with different credit card debt payments every month is no easy task, and many consumers who are in financial distress often miss making payments or keeping track of due dates and interest fees. If you are dealing with the same problem, you might be interested in how consolidating your debts can help provide much needed relief. With debt consolidation (or a debt management plan or DMP), you can combine debts spread across multiple cards into a single, more affordable, and more structured monthly payment made to a credit counseling agency that, in turn, distributes funds to creditors. When you enroll in a debt consolidation program, credit counselors review your outstanding debts, and review how much money you can reasonably dedicate each month to paying down your debts.
If credit counselors determine that debt consolidation is the right plan or program for you, they typically develop a personalized debt-reduction strategy and submit proposals (on your behalf) to creditors asking for reduced interest rates, or the waiving or elimination of any late fees or penalties. Creditors that agree to the proposals are placed into the debt management plan. What they aim to do is to provide you with a single, more predictable, and more affordable payment plan - one that can direct more of your payment toward paying off the principal of your debts rather than just the interest. If followed faithfully, a debt consolidation program can help reduce your debts sooner than if you only continued making the monthly payments on your credit card debts at higher interest rates.
Debt Settlement Option
For many consumers who are truly unable to meet their financial obligations or have extremely high balances on their credit cards, debt settlement can be a viable debt relief alternative because it can allows them to settle debts with creditors; the goal is to get creditors to agree to accept a reduced amount compared to what was originally owed. For many consumers, debt settlement or negotiation can offer an honorable and legal way to pay back a portion of the debts without declaring bankruptcy, and potentially save a substantial amount of money in the process.
Keep in mind, however, despite the opportunity to save a substantial amount of money, there can also be downsides to debt settlement: When you enroll in a debt settlement program, your credit score will typically decline because when you settle your debts, it usually involves "falling behind" on your payments in order to set aside funds that can be used to make a settlement offer (or what's also called a lump sum payment). In addition, as you fall behind in making payments, you can also face legal action for, essentially, defaulting on the terms of your credit card agreements. However, despite the fact that settlement can impact credit in the near term, settlement does not have as severe and long-lasting an impact on credit as bankruptcy, and this is largely why debt settlement has become a popular alternative for many consumers who want to avoid declaring personal bankruptcy.
Get Help and a New Financial Lease on Life
Each individual's debt situation is unique, and sometimes, finding a reasonable way to eliminate or reduce your debt may seem like an insurmountable task - especially if you have lost your job or you simply don't have enough income to pay down debts. But regardless of the reasons why you have spiraling debts, debt relief may be able to help manage your debts save a substantial amount of money, if you are diligent in following your debt resolution plan. The amount of savings that you can potentially realize every month, depends on the following: How much you owe, the current interest rates that you are paying, and any late fees or penalties. Keep in mind that with a debt consolidation program, you will be provided with a more structured and more lenient repayment plan that can help you pay off your debts sooner and at a pace that you can manage than if you continued to limit your payments to the minimum monthly amount required by creditors.
When you are ready to tackle your debts and truly make a commitment to paying down or reducing your debts, debt relief programs can and have been able to help many individuals and families. The first step is knowing what your debt relief options are, then understanding how they work, and finding debt specialists who will work with you toward paying off your debts and regaining control of your finances. Request a free debt relief analysis and savings estimate now to get you started - it's free, only takes minutes, and your free debt evaluation and savings estimate will not affect your credit.