Debt Settlement Companies - Indiana
Are you struggling with credit card debts and searching for a proven way to get relief and considering the professional help offered by, for instance, debt settlement companies? In this tough economy, many residents in Indiana as well as in other states are also faced with their own debt crisis. The good news is, there are several ways to get relief.
One option is a process known as debt consolidation, where you typically combine your high-interest credit card debts and other unsecured debts into one, more affordable, and more structured payment made to a credit counseling agency.
Another alternative is to work with companies that specialize debt settlement; when you enroll in a debt settlement program, you are hoping to settle or negotiate with creditors for a reduced amount of your credit card debts.
These days, both debt consolidation and debt settlement have become popular alternatives to bankruptcy, which is also a form of debt relief - but one that can have a more devastating and longer lasting impact on personal credit.
See your debt relief options now. Request a free debt relief analysis and savings estimate here.
How Debt Settlement Works
As mentioned previously, many consumers who are overburdened with credit card debt consider debt settlement - a process where they hope to settle or negotiate with their creditors for significantly less than their actual debt amount. If you are considering debt relief via debt settlement, a few words of advice: As the term "debt settlement" suggests, credit card companies are certainly not legally required to "settle" or accept your settlement proposal.
In many cases, debt settlement companies will advise or counsel you to stop making payments on your credit cards to save up funds over time that you can later use to make a reasonable settlement offer. Creditors may threaten to sue if you default on the terms of your credit card agreements.
In addition, if you default on the terms of your credit card agreement, you will likely see a decline in your credit scores. However, in spite of the potential risks, debt settlement remains a popular alternative to bankruptcy - which can have a more serious and longer-lasting effect on your personal credit.
Debt Consolidation - An Alternative
As noted earlier, if you are overwhelmed with credit card debts as well as other types of unsecured personal debts (medical bills, gas charges, or department store charges), help is available through a process known as debt consolidation, or what is sometimes referred to as a debt management plan (DMP).
Debt consolidation typically involves consolidating, or combining, your multiple, high-interest credit card debts into one, more affordable monthly payment made to a credit counseling agency. Consumers who enroll in a debt management plan talk to credit counselors that will review their finances and debt situation.
Once they have all the financial information that they need, credit counselors will typically make proposals (on a consumer's behalf) to creditors requesting a reduction of interest rates, or the waiving or elimination of any late fees and other penalties.
Creditors that agree to the proposals are generally entered into the debt management plan. It's important to understand that while it is the credit counseling agency's responsibility to disburse funds to creditors, it is your responsibility to make sure that you have money available in the account set up for your monthly payment.
Reputable credit counseling agencies and companies may even provide you with a due date (the date that they draw money from your account) that takes into consideration, for instance, when you get paid or have the funds available in the account.
Understand Your Relief Options
The bottom line is, if you are struggling with debts, there is help available - whether it be from companies assisting with debt settlement or debt consolidation. The smart thing is to do your due diligence and understand all your debt relief options.
Explore your debt relief options today. Request a free debt relief analysis and savings estimate - at no obligation to you.