Will Debt Relief Help You Get Rid of Debt or Pay Off Debt Faster? Find Out with Your Free Debt Relief Savings Estimate
Many consumers across Indiana and the nation are seeking credit card debt relief to pay off their debts. Loaded with credit card debt and high interest rates, many consumers are increasingly falling behind on their payments and are desperately looking for a solution that can help them reduce debts or resolve debt at an accelerated rate. If you are also struggling with credit card debts, there is good news. You do have a variety of legal debt relief options -- including debt consolidation or credit counseling, debt management plans, debt settlement, or even bankruptcy. An overview:
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 financial 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. 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.
Explore 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!
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 and outstanding 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 the 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 than having multiple, high-interest debts to manage every month.
Settle Debts to Save?
Debt settlement is increasingly becoming a popular option among consumers who need relief from high-balance credit cards (typically $20,000 or more). Here's how it works: A debt relief specialist will review your debt situation and determine how much money you can reasonably afford to set aside each month and accumulate for a lump sum or also called a settlement offer. Debt specialists will then negotiate with your creditors with the goal of settling 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 their 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.
Making Sense of Debt Relief
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. 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, there is help available to you if you're struggling to pay off credit card debts and unsecured debts.
Take the next step and explore your debt relief options - it only takes minutes to request your free debt relief analysis and savings estimate. Begin now.