Government Debt Relief
Just as in other states, many residents of Tennessee are struggling with high credit card debt and are looking for debt relief assistance from the government. As payments pile up and interest rates begin to mount, carrying debts from multiple credit cards, as well as unsecured debts (like medical bills, retail store charges, or utilities), can become increasingly stressful. Seeking help, many people who are in debt are turning to the government for relief. While the government is certainly interested in helping people in Tennessee and other states climb out from under their debts, there are no grants or bailouts issued by the government to give consumers debt relief.
The good news is, there are many debt relief options that can help either by providing you with a single, more affordable and more predictable payment plan made to a credit counseling agency - as is the case with debt consolidation. Or, another option is what's known as debt settlement, where you can settle, or negotiate with creditors, for substantially less than your original debts. Both options have become popular alternatives to bankruptcy, which can affect one's credit in a long lasting and devastating way.
To see how debt relief can help you and how much you can save, request a free debt relief analysis and savings estimate today. It only takes minutes!
"How Can Consolidation Help Me?"
Many residents in Tennessee hold debt from several sources such as medical bills, utilities, department stores, and credit cards. This complicated tangle of debts can sometimes make it all but impossible to understand what you owe and to whom. For many consumers, debt consolidation provides a single, easier-to-manage, and more structured payment plan, that if followed faithfully, can help you pay off your debts at a more predictable and accelerated pace.
Coordinated by credit counselors, debt consolidation generally involves combining all your credit card and unsecured debts into one, simplified payment. This is usually done after they have reviewed your finances and determined how much money you can reasonably allocate to paying off your debts.
With their expertise, credit counselors can act as intermediaries between you and your creditors in the hopes of reducing interest rates, late fees and/or penalties. Through this process, you can, hopefully, whittle your various debts down to a single, more manageable debt, enabling you to focus your payments toward the principal - and not just the accumulating interest.
Understanding Debt Settlement
When you enroll in a debt settlement program, you are hoping to settle or negotiate with your creditors for significantly less than what you originally owe. That is the main difference between settling your debts versus consolidating your debts through credit counseling - where you are paying the entire amount of your debts, just at lower interest rates. However, debt settlement has risks:
As the term "debt settlement" implies, credit card companies are certainly not legally required to "settle" or accept your settlement proposal. In many cases, you will be advised to stop making payments on your credit cards to save up funds, over a period of time that you can later use to make a reasonable settlement offer. While in the process of saving up funds and not making payments, many consumers are essentially defaulting on their credit card agreements and face the threat of a lawsuit from creditors seeking to collect debt. In addition, many consumers who default on the terms of their credit card agreements typically see a decline in their credit scores.
But in spite of the risk involving one's credit, debt settlement remains a popular alternative to bankruptcy - which, as mentioned previously, can have a more serious and longer-lasting effect on your personal credit.
Debt Relief Options and State Resources
Although there are no "silver bullets" from the government to help consumers pay off their debts, the state of Tennessee has programs that may be able to provide financial assistance. Many residents, for example, are saddled with federal student loans. For them, there are programs similar to traditional debt consolidation, but specifically focused on student loans, that can help achieve a lower interest rate and more convenient payment schedule.
In addition, there are various state-sponsored services or programs that are designed for low-income residents. The state of Tennessee offers many programs that can assist with job training and employment, access to health care services, and other basic necessities like food and childcare. In addition, the state's Housing and Development Agency has programs designed to help residents with their housing and mortgage concerns, including avoiding foreclosure.
The bottom line is, whichever debt relief option you choose, the important thing to remember is that you are not alone when it comes to managing your debts. You have many debt relief options that can not only help you pay off your debts, but can also lead to substantial savings. Find out how you can get help through debt relief by requesting a free debt relief estimate along with a savings quote. Begin now.