Debt Relief

Debt Relief

What is Debt Settlement?- Read On!

Debt Relief in a Nutshell – What Does It Mean? Many individuals are unclear as to what debt relief really means as it is in fact an umbrella phrase used to describe a variety of different strategies for dealing with, reducing or removing unsecured debt. Debt-relief strategies include debt consolidation, debt settlement, credit management and bankruptcy. Let’s break these down one by one and discuss the pros and cons of each.

Debt Consolidation: Eliminate debt by combining multiple monthly payments into one lower interest payment. This provides immediate relief from harassing creditor calls and letters as well as lowering your credit score. Debt consolidation is usually done through a loan company or credit union. For example, debt settlement involves arranging a lump sum payment with the debtors’ creditors in exchange for having the debtors pay a small percentage of their total debt each month until the full amount has been satisfied. Credit management is a combination of all three strategies, as it consists of paying a small amount of your debt each month until the debt is paid off completely.

 

Debt Management: Many people use debt management plans in order to reduce their debt, manage their financial situation and eventually pay it off completely. Debt management companies work with their clients on creating a customized budget that will help them manage their money effectively while meeting their obligations. Debt consolidation is often offered as part of a debt relief program.

 

Bankruptcy: Most people are aware that filing for bankruptcy protection can be devastating to their credit. Yet, many people choose to file for bankruptcy protection at least in part because it allows them to eliminate the collection calls and letters from creditors and lenders for up to seven years. However, filing for bankruptcy protection should be considered as the last resort after all other alternatives have been explored and the debt settlement or consolidation plan has been implemented. Once a person has filed for bankruptcy protection they cannot consolidate or settle their debts and can no longer make payments to their creditors.

 

As you can see, there are distinct differences between debt settlement, consolidation and bankruptcy when it comes to the different methods of eliminating and managing existing debt. When choosing which method to use for a particular situation, it is important to take a long hard look at all the options that are available to you. In addition to evaluating your personal financial situation and deciding which Louisiana credit management specialisttype of debt relief and settlement will work best for you, it is important to also keep in mind the impact that any one decision could have on your credit report and your future.

 

For many debtors, bankruptcy is often viewed as the most extreme step as explained by Louisiana credit management specialist. For others, debt relief through a combination of settlement and consolidation may be their only option. No matter what steps a debtor takes to manage their debt, they should always avoid taking any steps that could damage their credit. To learn more about consolidating and negotiating your way out of debt, contact a consumer credit counseling agency today. Their expert advice can help you get back on track.

Debt Relief

Consolidate Credit Card Debt With Debt Relief

National Debt Relief is among the largest debt relief firms based out of Broadway, New York. There are many reasons why National Debt Relief has become so popular for debt relief. They’ve been around the block once before and their track record for customers is stupendous, for starters.

Let’s take a look at how a debt counselor can actually get you out of debt by negotiating with your creditors and lowering your total debt amount. If you file for bankruptcy the first thing that happens is a knock on your door from a debt settlement firm who promises to reduce your debt by fifty or sixty percent and give you an easy way to start over. It is pretty hard to say no to that. But what usually happens is that the bankruptcy lawyer you hired to help you with your bankruptcy ends up pushing you into a debt settlement program instead.

The reason they push for a debt relief solution that lowers your total debt is simple; they earn a nice commission for every loan they negotiate for you. In addition to getting a nice kick out of it they also keep you from reporting your debt relief application as a debt to your credit history, which hurts you because it shows up negatively. So, when your credit counselor asks you to stop making payments to your credit cards the debt relief solution they recommended actually gives you a loan at a much lower interest rate to pay off your credit cards, without you paying a cent more in interest. The debt relief solution earns money from you for doing absolutely nothing.

Bankruptcy and debt relief can go hand in hand if you do it the right way; by hiring an experienced Albuquerque debt relief company to negotiate with your creditors. Debt consolidation works differently than bankruptcy, in fact it can even be used to clear all your debts if you use the right debt consolidation program. Bankruptcy can take years to recover from and most people are not willing to wait that long to start over. With debt relief, on the other hand, you will have your debts cleared in about five years; not including any court fees you would owe the credit card companies after bankruptcy.

If you feel that you don’t need debt relief after bankruptcy then think again. There are many programs available that will allow you to manage your debt better and still keep your credit rating in good shape. You will need to do some research on these consolidation options and find the one that best fits your situation and your budget. Some of these options require a loan to start and you must be able to make the monthly payments on time or you could end up in more debt and further financial difficulty. So weigh your situation and do the research.

One thing is for sure, debt relief can get you back on track toward financial freedom. However, you should make sure that you work with a reputable debt relief company that will help you manage your debts so that your credit card debt is reduced and you make one low monthly payment. Then you can move forward with enjoying life debt free.