Federal Debt Relief Program has been a boon for thousands of people who are debt ridden and have been unable to repay the debt accumulated from loans and credit cards. The program has helped people to reduce their debt burden by a significant percentage.
You will be able to repay your debt through lower rates of interest; payment adjustments that enable you to pay an amount that is significantly lesser than the original debt amount. The best thing about this is that not only the debtor is benefitted, but the creditor is also able to recover part of the dues which otherwise might not have been recovered.
Let us see the various ways Federal Debt Relief Program has been able to provide debt relief for many people.
Consolidation Program: These programs enable you to reduce your burden through lower interest rates; lower monthly payments; reduced or waived late payment penalties and no harassment from the creditors or agencies appointed by the creditors.
A consolidation mainly intends to do debt consolidation. In other words, if you have multiple credit cards and have run up a huge bill, the dues are consolidated in such a manner as to arrange a single and reduced payment for you.
Also, if you have been unable to pay the other types of bills such as medical bills, electricity bills and so on, the dues can be consolidated onto a single payment with reduced interest rates and amount.
Debt Settlement: This is a popular program under Federal Debt Relief Program. This enables you to reduce your debt by waiving off the late payment penalty; avoid wage garnishment and lawsuits; getting immunity from calls or follow ups by the due recovery agencies; having to pay just one due monthly and lastly, immunity from filing bankruptcy.
Debt Management: This is a popular program of managing your total debt. This program enables a debtor to reduce debt burden by 40% to 60%. The Debt Management Company negotiates with the creditors and arranges for the debtors lower rates of interest; reduced or waived late payment penalty; no follow ups from due recovery agencies appointed by the creditors and so on.
The customer of the Debt Management Company sends the payment to the company and the company arranges the payment to the creditors. Sometimes, another loan at softer terms can also be arranged to pay off the earlier dues.
The main advantage with the above plans is that you can actually pay the loans off from your own pocket. In return, the institutions from where you had taken a loan give back a statement that states that the dues have been settled between you and the institution.