Could Debt Relief Help You Get Out of Debt Faster and Save? Find Out with Your Free Debt Analysis and Savings Estimate
Finding a proven way to get relief from and pay off credit card debts is a concern of many residents in Tennessee, just as it is for many Americans. If you are also falling behind on your credit card payments, as well struggling to pay off other types of unsecured debts - such as medical bills, utilities, or retail store charges - you may be interested in knowing if you can find relief through debt consolidation or a debt management plan (DMP).
Debt consolidation through credit counseling typically involves "consolidating" or combining high-interest credit card debts and other unsecured debts into a single, more structured, and more manageable monthly payment. The goal is, with a more structured and more affordable repayment plan, you can ideally reduce and pay your debts sooner than if you only continued to make the minimum payments at higher interest rates. Another available option, depending on your debt situation, is a process called debt settlement. With debt settlement, consumers can generally negotiate with their creditors to pay off a significantly lower amount of their original debt.
These days, many consumers consider debt consolidation and debt settlement as popular alternatives to bankruptcy. Filing bankruptcy is certainly a form of debt relief, but one that has a more damaging and longer lasting consequence on personal credit. Find out if you qualify with a free debt relief analysis and savings estimate by answering just a few, simple questions. Start here.
"How Can Consolidation Help Me Pay Off Debts?"
Debt consolidation through credit counseling is a proven and legal way for many consumers to get credit card debt relief. Before choosing a credit counseling service, however, it is important to understand how it works, and how it can potentially help you reduce the total amount of your credit card and unsecured debts.
Facilitated by credit counselors, debt consolidation generally begins with a review of your financial situation - taking into account your income, financial obligations, and other assets. When credit counselors have a clear picture of your finances, they will typically develop a strategy to help you pay off your debts sooner than if you only continued to make the minimum payments at higher interest rates. With a strategy in mind, they will generally submit proposals to credit card companies, on your behalf, requesting lower interest rates and the waiving of late fees and penalties. Creditors that accept the proposals are added to the debt management plan. Credit counseling agencies, in turn, distribute those funds to creditors that are in the plan.
The goal is, with a single, more structured, and more affordable payment plan, you can pay off debts at a more manageable and predictable pace.
"How Does Debt Settlement Work?"
For many consumers in Tennessee who are struggling with high balances on multiple credit cards, debt settlement is becoming a popular debt relief option. By settling debts, you can save a substantial amount of money and allow yourself to potentially settle credit cards in as little as 12 to 36 months. The goal of debt settlement is to negotiate, or "settle," with creditors for significantly less than what's owed. However, like other debt relief options, debt settlement has potential risks:
With debt settlement, your credit score will typically decline because the process involves "falling behind" with your payments in order to save up funds, over an extended period of time, that you can use to make a settlement offer (aka lump-sum amount). As you miss payments, you will likely see your credit score go down, particularly if you had good or excellent credit prior to starting the debt settlement process. In addition, many consumers entering a debt settlement program can face legal action for, essentially, defaulting on the terms of their credit card agreements.
But in spite of the risks, debt settlement has become a popular alternative for consumers who want to avoid bankruptcy, which has a more damaging and longer lasting impact on one's credit.
Is Consolidation Right for You?
As mentioned earlier, the goal of debt consolidation through credit counseling is to provide consumers with multiple, high-interest debts with a single, more structured, and more lenient repayment plan. With a single, more manageable payment plan in place, they can typically pay off debts at an accelerated pace and get back on track with their finances sooner.
With a free debt relief analysis and savings estimate, you can explore your debt relief options, find out how much you can save, and get back on track with your finances. Start today by answering just a few, simple questions to get your free debt relief analysis and savings quote.