Debt Relief Options – Take Action!
Today it’s quite common for families – and individuals – to carry $20,000, $30,000, even $50,000 or more of credit card or other unsecured debt. Most of us are optimistic by nature, and since it’s normal to experience financial ups and downs in life, many people just ignore the problem and hope things get better down the road.
Sometimes, problems do take care of themselves when we put our heads down and just keep working. Unfortunately, when you are buried under excessive personal debt, this is rarely the best strategy.
When you’re drowning in credit card debt or other unsecured debts, and you want to take a more proactive stance in becoming debt-free, there are a number of debt relief programs that can help to restore financial stability to your life.
Debt Relief Programs & Debt Reduction Options
Below are brief descriptions of various debt relief programs and debt reduction options available for those looking to lighten their financial load.
1. Continue making minimum monthly payments.
Although it is not a debt relief program in itself, making minimum monthly payments is one of the most commonly used methods of getting rid of debt. For many individuals, making minimum monthly payments can seem like a good idea because the short-term cost is low, but this can be deceiving as only paying the minimums can keep you in debt & paying interest for much longer than you would with other forms of debt relief. Compared to a typical debt relief program, paying the minimum monthly payments is often the worst strategy for repaying a debt.
2. Credit Counseling or Debt Management.
Credit counseling is a debt relief program that involves working with a credit counseling agency to organize your debt payment structure and attempt to lower interest rates in the process. Typically, a single monthly payment is made to the counseling agency, and in turn, they distribute the money to creditors on your behalf, ideally at lower interest rates so you can pay off the debt faster. With credit counseling, you still end up paying back 100% of your debt plus interest. On top of this, these programs are designed to take between 3 to 5 years to work through and have very low rates of completion when compared to other debt relief programs.
3. Debt Consolidation.
With debt consolidation, a larger loan paired with a low-interest rate is taken out and used to pay off your higher-interest unsecured loans. This type of debt relief program leaves you making a single monthly payment that is – in theory – lower than what you were paying for all of your credit card and other unsecured loans before. This can be a good debt relief option if you have debts spread over many different sources and have credit that allows you to secure a good rate of interest on the consolidation loan.
4. Debt Settlement or Debt Negotiation.
Debt settlement differs from the first two debt relief programs in that the actual principal balance you owe is negotiated downward by up to 60% in addition to lowering the interest rates. Because you end up owing significantly less total debt and interest is accruing at a much slower rate, debt settlement can generally a faster and less expensive debt relief option than either debt counseling or debt consolidation.
For the individual who cannot meet his or her debt obligations, filing for personal bankruptcy may be an inevitable outcome. A formal declaration of bankruptcy stops the creditor collection process, and the debtor no longer owes some or all of the unsecured debt, but their ability to borrow on credit is severely hindered for years to come.
Each of the five debt relief options has its advantages and disadvantages and may be the best, or only, option depending on your financial situation. Visit the individual pages to learn more about each debt reduction option or give us a call at 800-527-4421 and one of our debt relief specialists will be happy to help you.
How Do Debt Relief Programs Work?
Debt relief programs for medical bills, credit cards, and other forms of unsecured debt are options worth exploring if you are struggling to deal with debt. Essentially, a company purchases your debt from lenders at a discount and then writes off any remaining balances. Debt-relief companies vary widely in terms of price and quality; before selecting one, it’s important to research whether they’re a reputable organization that has your best interests in mind. In some cases, debt relief companies may be able to reduce your interest rates or monthly payments, but their main goal is usually just getting rid of your debts so that you can get back on track financially.
FAQ’s: Debt Relief Options
If you are looking to get out of debt, one of the first things you need to do is find out your debt relief options. There are many different ways to go about achieving debt relief, and often, it may seem like you have more options than you can deal with at once! But don’t worry—we’re here to help by providing some FAQ’s that will help clear up any questions you may have regarding getting rid of your debt quickly and effectively.
What is the best option to get out of debt?
There are multiple options for getting out of debt, and there is no one-size-fits-all solution. The best approach is to identify your biggest debts, create a budget and stick to it, and begin tackling your smallest debts first. If you’re having trouble paying your debt off in full or are behind on payments, consider seeking professional help through a credit counseling agency specializing in debt relief.
What are the three types of debt relief services?
There are three main types of debt relief services: out-of-court settlements, debt relief programs, and bankruptcy. Each one is different in how it works and whether or not they are right for you, so be sure to consult with a professional to determine which one is best. New Era Debt Solutions offers alternatives to bankruptcy. You are not alone. Please reach out should you need any assistance during this time.
Are There Debt Relief Options that Result in Debt Forgiveness?
Forgiveness of debt can come in many forms. Bankruptcy relief is one option for discharging consumer debts, including credit card balances and medical bills. If you have unsecured obligations, like those from credit cards, medical bills, and payday loans, there can be a way to get your debts forgiven. This is not the preferred method, but it’s an option some people do take. This can include bankruptcy or other strategies used by creditors for recovery when a debtor has no assets to seize.
Who is eligible for debt relief options?
If you are experiencing financial hardship because of your debts, debt relief might be an option. Most people are eligible as long as their debt has significantly impacted their lives for at least three months. The great thing about the right debt relief options is that there are many to suit almost every situation. You can seek out professional help or do it yourself if you want to take a more hands-on approach. Contact New Era Debt Solutions for more information.
Learn More About Your Debt Relief Options with New Era Debt Solutions
Are you looking to get out of debt once and for all? Don’t let the task overwhelm you; take it one step at a time. With our debt relief options, you can breathe easier and move forward knowing that your finances are moving in the right direction again.
Whether you’re dealing with medical bills, credit card debt, or student loans, your financial obligations can feel overwhelming. Don’t panic—the experts at New Era Debt Solutions are here to help. Contact us today to learn more about our debt relief options and how we can help you regain control of your finances. Don’t let debt take over your life—let us give you some peace of mind!