Could Debt Relief Help You Get Out of Debt Faster and Save?
In this tough economy, many residents in North Carolina and across the country are looking for relief and ways to reduce debt, lower debt, or pay off debt - like credit card debts as well as other types of unsecured debts, such as gas cards, department store cards, medical bills and more. If you are also paying only the minimums each month or falling months behind on your credit card and unsecured debt payments, you might be interested in finding out how much you can potentially save, every month, through debt consolidation.
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Typically, debt consolidation companies can provide you with a single, more structured, and more manageable payment plan that allows you to pay off your debts sooner than if you only continued to make minimum payments at higher interest rates. Another likely benefit with debt consolidation is that the impact to your credit is not nearly as damaging or as long lasting as bankruptcy.
Another approach that may help consumers struggling with credit card debts is debt settlement, which allows them to work out a plan with credit card companies to pay a significantly reduced amount of their debts.
Benefits of Consolidating Your Debts
For many consumers, credit card debts have, unfortunately, become a part of life due to any number of reasons, like unemployment, a medical crisis, or personal hardship. As a result, many Americans like you have fallen several months behind on their credit card payments, which can result in late fees and higher interest rates that often push many people deeper into debt.
The good news is, there are a variety of debt relief options available, including debt consolidation. One of the major benefits of debt consolidation, or a debt management plan (DMP), is that it allows many individuals to make one consolidated, lower interest monthly payment to a credit counseling agency. Facilitated by credit counselors, the debt consolidation process generally begins with an assessment of your debts and how much money that you can reasonably allocate to paying off your debts.
When creditor counselors have all the financial facts they need, they will typically develop a strategy to help you pay off your debts at a more manageable pace. They achieve this by speaking to creditors, on your behalf, asking for reduced or lower interest rates, as well as the waiving of late fees and other penalties. Creditors that agree to those proposals are entered into the debt management plan.
As you may see, consolidating debts through credit counseling is a wise move for many consumers who are ready to tackle their debts and find a proven way that can help them manage their debts at pace that they can keep up with. With a free debt relief analysis and savings estimate , you can find out how much you could possibly save every month. Start here.
Debt Settlement Alternative: Pros and Cons
Debt settlement as a form of debt relief is, fundamentally, a different approach than debt consolidation through credit counseling. With credit counseling, you are paying the entire amount of your debts; with settlement, you are hoping to settle, or negotiate, with creditors for substantially less than what you owe. Many credit card companies view debt settlement as a viable alternative to selling off "bad debt" to third-party debt collectors who often pay them as little as 10 cents on the dollar.
For many consumers, debt settlement is a smart financial move, but like other debt relief options, it also has potential drawbacks: When you enroll in a debt settlement program, for instance, you will be typically advised to stop paying your credit cards and start accumulating funds over a certain period of time that you can later use to make a reasonable settlement offer. In this scenario, when you stop paying credit card companies, you run the risk of being sued for, essentially, defaulting on the terms of your credit card agreements.
In addition, when consumers settle with a credit card company, those that generally had good credit prior to settling may see their credit scores go down. However, in spite of the risks to their credit score, the impact of debt settlement is still not nearly as severe or long lasting as bankruptcy.
To find out how debt relief can help, answer a few, simple questions and get a free debt relief analysis and savings estimate.
How Much Can You Save With Debt Consolidation?
When it comes to finding debt relief, each individual's financial situation is unique. You, for instance, may have started falling behind on your credit card payments due to losing your job or having used your credit cards to pay for essentials like food, utilities, and rent. For others, personal difficulties may have caused them to start missing payments for several months.
That's why it makes sense to find out what a debt management program could potentially do for you and how it may lead to savings. Keep in mind that the amount of savings depends on the total amount of your debts, the current interest rates that you are paying, and any late fees or penalties.
As noted earlier, the goal of a debt consolidation program is to provide you with a single, more affordable, and more manageable payment plan made to a credit counseling agency. With a more lenient repayment plan, you can, hopefully, reduce your debts sooner than if you only continued to make the minimum monthly payments at higher interest rates.
The bottom line is, there are proven ways to help you manage your finances and pay down your debts at an accelerated pace. Find out how debt relief - such as debt settlement and debt consolidation (or debt management plan) can help you. Start by requesting a free debt relief analysis and savings estimate.