The debt programs are nowadays the option to get the assistance in bill payment, which is completely legal.
It’s not easy to compare various options in getting the debt relief, since all of them differ significantly from each other. Using some of them requires the loan to be taken out while the others are really aggressive ones and are suitable only for people in severe financial crisis. When you decide to turn to the agency searching for debt relief, it is wise to study available programs from the very start.
What options are available for debt relief?
Here we state 5 main options suitable for the debt relief obtaining:
1) Budget and bill payment
Here you pay minimum for all the accounts, while choosing some with the highest interest rated and putting there all the money that are left after the payments. This is the lightest solution and works only when your debt is still in control.
2) Debt management
Here you’re supposed to contact the agency to assist you in lowering the interest rates by negotiating with creditors. This will make your bills somewhat affordable.
3) Debt settlement
This is the beneficial option in case the debt is too high for you to pay in full. Here not only the interest rate, but also the total sum will appear to be the part of negotiation, so that the creditors will be asked to accept it as a full payment.
4) Debt consolidation
According to this plan all the debts are united into the single one and rearranged so that you will make one single monthly payment in affordable amount. This is possible only for the unsecured debts.
This is the last and really drastic resort for the person. Either your assets which are non-exempt will be totally liquidated, or the debts will still be restricted, so that your creditors will be satisfied. The Chapter 7 and Chapter 13 of the Federal Bankruptcy Code allow the personal bankruptcy to be performed.
How to compare the options of debt relief?
If your debt is a lot higher than you can afford to pay off, you do need the definite assistance in the matter of debt relief. Still there are a lot of options of how to settle everything, so sometimes it might be not all that clear which way is the best one. Each program offers the set of benefits and the definite consequences like the effect on your credit score and taxes. Take your time to compare the programs to be sure you selected the right one.
The benefits of debt relief programs
Here is the list of rather obvious benefits of the programs concerning the debt relief:
- The significant reduction of stress, when the normal mood and calm sleep are with you again;
- The ability to take a grasp over your finances;
- The reduction of collectors calls to the minimum level;
- The chance to get a good credit score.
If you feel like you’re not making it with even minimum amount of monthly payments, it’s time to look for the debt relief immediately. Get a contact with us so that we can offer the professional and experienced help. Here you will get the free consultation and analysis of your financial state In order to choose the best option for you.
Here are some questions you can put:
1) What are my options in the program of credit card debt relief?
It’s important to understand the difference between programs in order to make the right choice. Moreover not all ways can be offered in the chosen agency, so you shall be attentive. Most companies run the credit card consolidation program which involves the negotiation with your creditors to talk them into lowering the interest rates or the sum of the debt.
2) What fees will I have to pay?
Most of the credit relief programs obtain some fees, since the companies want to get something more than “thank you” for their help. Still no one have the right to collect a fee before they have reduced your debt. This is stated in the rules of Federal Trade Commission. Still some companies might ask for the debt consolidation payments which are to be made up front.
3) Which effect will the program have on my credit?
The credit report might be negatively affected by the credit card debt relief program. The main reason is that you will be advised to close all your credits right after starting the program. This will have the negative influence on the credit history. Also the payments you do will be less then it’s stated in the agreement. Still if the company reports everything to the credit bureau, your credit history won’t suffer too much.
4) Will creditors still go on calling me?
This is an important question, since most of the companies take all the chatting for your behalf. In other words the creditors shall turn to the agency from now on and leave you alone. The companies have the right to call you in order to collect their debts. But after you’ve enrolled the credit card debt relief program, you can notify the creditors in written form to stop the calling, and from now on they have to right to bother you.
5) Will my credit be perfect after the program?
There are no guarantees about your credit improvements after you took part in the credit card debt relief program. Some cases can affect you credit history in a bad way. Also there’s the significant difference between the credit card relief program and the credit repair program. For more information about your case ask the chosen agency.