How To Find The Best Debt Relief Services
Living a debt-free lifestyle is one of the smartest decisions you can make. It’s also one of the hardest decisions, especially if you’re already burdened with heavy debt or if you’re living paycheck to paycheck.
Sometimes, you may feel overwhelmed with credit card debt, personal loans, private student loans, or medical bills and think it’s virtually impossible to get “back to zero” and start over with a financial “clean slate.”
Fortunately, there is hope, because debt relief programs can help you get your finances back on track.
But first, let’s take a look at how debt relief works…
How Does Debt Relief Work?
Debt relief is the process of reducing debt through negotiation with creditors.
There are several ways to become debt-free, but the most appropriate solution for you will vary depending on the type and amount of debt you have, your financial resources, and your ability to make payments.
Plus, the best debt relief companies like American Relief Organization can work with you and will deal with your creditors, so you don’t have to deal with that added stress.
Some of the most common debt relief solutions include debt settlement, debt consolidation loans, and credit counseling.
Debt Settlement
One common form of national debt relief is called debt settlement. Debt settlement can go by different names.
Some debt relief companies call it debt negotiation, while others call it debt resolution.
All these terms mean the same thing: you lower your overall debt by talking directly with your creditors and debt collectors. You can also save yourself the time and stress, and work with a reputable debt relief company like American Relief Organization and they can do it all for you.
This process involves negotiating with creditors to get them to agree to accept less than the full amount owed.
It’s also important to know that banks and debt collectors don’t have your best interest in mind when it comes to debt relief, which is why most people hire debt relief services or a debt settlement company to interact with them on their behalf. Doing so helps ensure they’re not being taken advantage of by financial institutions or 3rd party debt collectors.
So if you have over $10,000 of unsecured debt (credit cards, personal loans, payday loans, medical bills, etc.) and can’t keep up with the minimum payments … or even if you can keep up, but the interest fees keep going higher and higher every month and you feel like you’re running on a hamster wheel of debt…
Then a debt settlement program could be your best option. See how much you can save with American Relief Organization.
Debt Consolidation Loans
A debt consolidation loan is a debt relief method used to pay off multiple high-interest unsecured debts. Debt consolidation loans allow you to have only one monthly payment, usually at a lower interest rate.
Debt consolidation can be helpful, as many people get caught in a minimum payment trap each month where they only pay the interest on their debt and don’t actually pay any of it off.
By getting a debt consolidation loan with a lower interest rate than you currently pay, you can use the saved money to pay down the debt faster.
However, many people don’t qualify for debt consolidation loans because of their credit score, debt to income ratio, or employment status.
And sometimes, even if they do qualify for the loan, they wipe out the debt on their credit cards… only to start racking up more debt on them again. Plus, they have to pay back the debt consolidation loan. This is a common debt trap that happens all the time.
Debt Consolidation Loans And Bad Credit: How Does Credit Impact Your Loan?
Another reason people choose a debt consolidation loan is to protect their credit score, if it’s high to begin with.
With debt consolidation, you pay off your debts in their entirety.
If you’re employed and able to make your monthly loan payments for the duration of the loan term, a debt consolidation loan could be a good option.
However, if you have bad credit, it may be challenging (or even impossible) to qualify for a traditional debt consolidation loan.
Several lenders specialize in providing loans to people with bad credit, but these loans often come with high-interest rates and fees, potentially leaving you in an even worse position.
Are Debt Consolidation Loans A Good Idea?
Debt consolidation loans can be a good idea if you struggle to manage multiple debts. A debt consolidation loan will allow you to pay off multiple debts with a single, new loan.
If you’re considering a debt consolidation loan, comparing offers from multiple lenders is important to help ensure you’re getting the best deal possible.
In many cases, it may be best to work on improving your credit score before applying for a consolidation loan because of banks’ more strict lending practices.
This is why it may make good financial sense to contact American Relief Organization to discuss your situation and determine which debt relief solution would work best for you.
Credit Counseling And Debt Management
Credit counseling agencies are usually non-profit organizations that work with banks to lower interest rates on your credit accounts.
Keep in mind though, that you’ll still have to pay back all of the debt, unlike debt settlement, where you, or a debt relief company you work with, can reduce what you owe by as much as 50% and sometimes more.
Through a Debt Management Plan (DMP), you’ll work to pay back all of your debt owed with a lower interest rate, sometimes over the course of five or more years.
But, it’s important to know that your debt and new minimum payments may still be unmanageable.
In order to be accepted into a DMP, you’ll need to have a reliable monthly income and be able to keep up with your new minimum payments.
What Debt Relief Solution Is The Best?
Everybody’s situation is different.
It’s important to know that there is no “one-size-fits-all” debt relief solution.
What may work for you may not work for other individuals or couples who have unmanageable debt.
That’s why it’s important to get the facts, and talk with a certified Debt Specialist today about your current financial situation, explore your options, and find out the best debt relief solution for you!
