Debt Relief Options
In this tough economy, many residents of Tennessee and other states are in need of debt relief because of overwhelming credit card debts as well as a variety of unsecured debts, such as medical bills, gas bills, or department store charges. If you are like many Americans who are looking for a proven way to get relief from multiple debts, you might be interested in finding out how much you could potentially save, each month, by consolidating your debts. With debt consolidation, you can combine multiple credit card and unsecured debts into a single, more manageable, and more structured payment made to a credit counseling agency.
However, debt consolidation is certainly not your only option when it comes to getting debt relief. You could also find relief through debt settlement - a process that allows you to negotiate with creditors for substantially less than your original debts. Another option is a debt consolidation loan, which means consolidating your high-interest credit card debts into a single, lower interest loan. All of these options today have become popular alternatives to bankruptcy, which has a more damaging and longer lasting impact on one's credit rating - an important consideration - particularly for consumers with a good credit history prior to filing bankruptcy.
To find out how debt relief can help you and see what you available options are, answer a few, simple questions and get a free debt relief analysis and savings estimate. Start today!
Benefits of Consolidating Your Debts
For many consumers struggling with high credit card debts and unsecured debts, debt consolidation can certainly be a viable debt relief option. If you have the type of debt that qualifies for debt consolidation, or a debt management plan (DMP), your potential savings depend on how much your debts are, what the current interest rates are that you are paying, as well as other fees and penalties. The goal of debt consolidation is to provide you with a single, more manageable, and more structured monthly payment made to a credit counseling agency.
Credit counseling agencies typically work with creditors to help consumers get a more simplified and more affordable payment plan. When you enroll in a debt consolidation program, credit counselors review your debts, finances, and overall ability to pay your debts. After they have a clear picture of your financial situation, credit counselors will typically develop a game plan that can help you reduce your debts - and they usually achieve this by submitting proposals on your behalf to your individual creditors asking for reduced interest rates, or the waiving or elimination of late fees and other penalties. Creditors that agree to these proposals are placed into the debt management plan.
The goal of relief via debt consolidation or credit counseling is, as mentioned earlier, to provide you with one, simplified, and more affordable payment plan so that you can pay off your credit card and unsecured debts sooner than if you only continued to make the minimum monthly payments at higher interest rates.
What Are Debt Consolidation Loans?
Debt consolidation loans typically involve combining your high-interest credit card debts and other unsecured debts into one, lower interest loan. However, a debt consolidation loan involves taking unsecured debt and paying it off with funds that come by way of a "secured" loan, meaning, a loan where you would have had to put up your home or other asset to get approved.
However, many consumers who get debt consolidation loans typically do not have the willpower to stop using their credit cards, and they start accumulating new, high-interest charges. As a result, many of these consumers end up having to deal with new credit card debts on top of their personal loan. In cases like this, a debt consolidation loan has made their debt crisis go from bad to worse.
Debt Settlement Pros and Cons
These days, many consumers like you who are overwhelmed with credit card debts can typically find relief through debt settlement. Unlike debt consolidation where you pay the entire amount of your debts, just at lower interest rates, one of the pros of debt settlement is that it allows consumers to try and negotiate, or settle, with creditors for significantly less than their original debts. However, debt settlement has risks:
Many consumers are typically advised by debt settlement firms to set aside funds over a certain period of time that they can later use to make a reasonable settlement offer. During this time period where they are savings up funds, many consumers are advised to stop paying their credit card bills and save up those funds instead. As a result, many consumers who do default on the terms of their credit card agreements risk being sued by their individual creditors and they typically see a decline in their credit scores. However, in spite of the risks, debt settlement has become a popular alternative to bankruptcy - which can lead to more damaging and longer lasting consequences on your personal credit.
Is Debt Relief Right for You?
If you are looking for a proven way to get much-needed debt relief, there is help available. For many consumers, debt is a problem that won't magically go away so it's a smart move to start exploring your debt relief options sooner rather than later. And, if in addition to your debt crisis you are also struggling with basic necessities or need financial guidance, the federal government may be able to bridge the gap and provide some assistance. The state of Tennessee offers many programs to help low-income residents with job training, get access to health care services, and other basic necessities. In addition, the state's Housing and Development Agency has programs to help residents with their housing and mortgage concerns including avoiding foreclosure.
The bottom line is, if you are ready to find a viable solution to your debt problem and get a new lease on life, perhaps it's time to find out which debt relief option is right for you and your family. Explore your debt relief options by requesting a free debt relief analysis and savings estimate today. It only takes minutes!