Could Debt Relief Help You Get Out of Debt Faster? Find Out With Your Free Debt Relief Analysis and Savings Estimate.
Many consumers across America including residents of Missouri are seeking credit card debt relief, and ways to pay off their debt faster. Loaded with credit card debt and saddled with high interest rates, many consumers are increasingly falling behind on payments and desperately looking for a solution to pay off credit card debts as well as "unsecured debts" like medical bills, gas cards, store charges, etc. If you are also overwhelmed with credit card debts and need relief, there is good news. These days, your debt relief options can include debt consolidation or credit counseling, debt settlement, or bankruptcy. Depending on your debt level, these options can help you lower payments, set you up with a more predictable payment plan, and help you reduce debts. Here's how they work at a glance:
A debt consolidation agency can typically work with you to consolidate your credit card debts, as well as unsecured debts like medical bills, utilities or department store charges, and combine them into a single, more structured, and more affordable payment plan. While debt consolidation is a smart move for many consumers, your other debt relief options can also include debt settlement, which, if you qualify, can significantly reduce the amount of money you owe creditors because it allows you to negotiate with creditors with the goal of paying considerably less than you currently owe.
Both debt relief options have become, for many consumers, popular alternatives to bankruptcy. While bankruptcy can also help clear credit card debts, it also has a more damaging and longer lasting impact to personal credit, and should be carefully considered with the assistance of a financial advisor or attorney.
Compare your debt relief options and see how much you can save by answering a few, simple questions to get a free debt relief analysis and savings estimate. It only takes minutes to complete - start now!
"Why Consolidate to Pay Off Debts?"
Debt consolidation, or a debt management plan (DMP), is a debt relief option allowing individuals to combine or "consolidate" multiple credit card and unsecured debts into a single, more affordable payment each month. Facilitated by credit counselors, debt consolidation typically begins with a consultation where they review your finances, income, and financial obligations. After credit counselors determine how much money you can reasonably allocate to paying off debts, they will speak to creditors asking for more lenient payment terms - such as reduced interest rates or a waiver of late fees or other penalties.
Creditors that accept the proposals are then placed into the debt management plan, or DMP. The goal is, with a more lenient and simplified payment plan, you can pay off your debts sooner than if you only continued to make the minimum payments at higher interest rates. For many consumers, having a simplified and more predictable payment plan is preferable to having multiple, high-interest debts to manage every month.
"When Should You Settle?"
Debt settlement is increasingly becoming a popular option among consumers who need relief from high-balance credit cards (typically $20,000 or more). When you enroll in a debt settlement or negotiation program, a debt relief specialist will review your debt situation and determine how much money you can reasonably afford to set aside each month to accumulate as a lump sum payment (a settlement offer). Debt specialists negotiate with your creditors with the goal of settling your debt for significantly less than what you owe. While settlement can save you a substantial amount, it also has risks.
Debt settlement requires debtors to "set aside" money for a lump sum amount, and creditors may threaten to take legal action against you to collect debt. In addition, settlement may negatively impact one's credit due to defaulting on credit agreements. However, in spite of the risks involved, debt settlement is still a popular alternative to bankruptcy, which has a more damaging and longer-lasting impact to your credit - an important consideration if your credit ratings are good prior to bankruptcy.
"Get Debt Relief and Get Your Life Back"
If you are truly overwhelmed with credit card and unsecured debts, you can breathe a little easier because help is available. Keep in mind that because every individual's debt situation is different, it's smart to compare and contrast all your debt relief options, and to do your due diligence, taking time to review all your options and knowing how long it will take for you to pay off debts or how much you can save. It's also important to understand that when you request a free debt relief analysis, your credit score will not be affected because any inquiry to your credit involves what it is known as a "soft inquiry."
The bottom line is, if you're struggling with credit card debts and unsecured debts, you can breathe a little easier because help is available. Take the next step towards getting help and explore your debt relief options - it only takes minutes to request your free debt relief analysis and savings estimate. Start today.