subject: Debt Relief Options – How To Capitalize On The Bad Economy And Eliminate Debt [print this page] Debt relief options are available to help you get back on your feet as the economy is turning around.
But what exactly is "debt relief"? First let's define it then we will discuss it.
Debt relief is a general term that means creating a way to pay less in expenses each month to give your wallet a break. If you can only afford to pay the minimum payments on your bills, or if you are not paying bills at all, it may be time to ask for help. This is where a debt professional can show you how you can ease the monthly payments you are making. Let's take a look at the different options and how a professional could help you in each case.
Settlement - If you have $10,000 or more in total credit card bills that are seriously overdue or if you are being hounded by collection agencies, this may a good option for you. This debt relief solution reduces your balances and monthly payments so you can start to get your credit back on track. What happens is a professional will bargain with your creditors and get them to take a lesser amount than you owe. If they agree to take a lower amount, they call it even and you are not responsible for the rest. Most times, collection agencies are willing to settle for an amount that is up to 60% less than what you owe. Settlement gives you a significantly lower monthly payment that you can afford and a way to get back on your feet.
Negotiation - Debt negotiation would be good choice if you are having trouble keeping up with your monthly payments, you are only a month or so behind, but you can't seem to catch up. A professional will negotiate different terms to help you pay your bill. For example, your interest rate may be negotiated to a lower one. This would reduce your monthly payments. The terms of your loan may be lengthened to allow you more time to pay the balance off. This would also reduce your payments.
Consolidation - This would be a good choice if you have multiple credit cards, personal loans, or medical bills that you are struggling to manage, but are managing anyway. If you are keeping your credit in tact, but struggling to do so by making minimum payments, consider consolidating your debt. This debt relief option allows you to roll all of your debts into one low installment loan payment. This installment loan comes with a monthly payment that is significantly lower than the sum of the multiple payments you are making. It also comes with an end date that is as little as 18 months away. When you make the last payment, your debt is eliminated.
No matter which of the debt relief options you choose, help is available. Don't be afraid to talk about your finances. All you have to do is take a deep breath and let a professional assist you. The best part about debt relief - is the relief.
Debt Relief Options How To Capitalize On The Bad Economy And Eliminate Debt
