Struggling to pay off your debts? Debt relief might be a logical alternative for you. Read on to learn more how debt relief works.
What is Debt Relief?
Investopedia defines debt relief as the following:
The reorganization of debt in any shape or form, so as to provide the indebted party with a measure of relief, either fully or partially, from a huge debt burden. Debt relief can take a number of forms: reducing the outstanding principal amount, lowering the interest rate on loans due, extending the term of the loan and so on.
Contrary to some people’s belief, debt relief is a legal way to reduce one’s unsecured debts. In fact, for many people who lack the capacity to pay off one’s balances in full, debt relief might be the only logical step to take. Otherwise, they will live the rest of their lives trying to pay off their mounting debt. The painful consequences range from zero savings, tiny nest egg, to constant stress, and even to marital strain.
Need Debt Relief?
Financial Rescue LLC offers Debt Relief Programs that may help speed up your recovery from bad debt.
Call us at (877) 973-3287 for a FREE CONSULTATION!
Types of Debt Relief
As defined above, debt relief can take a number of forms. There is a debt management program (DMP), debt consolidation, and the more recent practice of debt negotiation or debt settlement.
A debt management plan is a repayment plan that a credit counselor recommends for a client after evaluating his financial status. In a DMP, a debtor’s interest rates are usually lowered but he still has to pay 100% of his balance.
In debt consolidation, a debtor takes out a bigger loan to cover all his balances. Instead of paying all his accounts individually, his debts will be combined or “consolidated” into a single loan, with preferably a lowered interest rate or waived penalty fees. His new creditor is the debt consolidation company that provided the consolidation loan.
Debt settlement, however, takes a different approach. A more aggressive type of debt relief, its goal is to negotiate one’s balances for a much lower amount, typically 30-65%* of the actual balance and interests accrued. A debtor who undergoes a debt settlement program, therefore, doesn’t have to pay 100% of his debts, saving him more money and time in the process.
Click here for a more thorough explanation of each of these types of debt relief.
Debt Relief Services in the United States
If you think you are in a situation right now where debt relief is your best option, then you need to start looking into debt relief services here in the United States. There are several debt relief companies in the U.S. but you need to pick only the ones that live up to the standard practices set by the Federal Trade Commission.
Don’t just sign up for a debt relief program. Know everything that you need to know such as:
- The business’ reputation for quality service and honesty.
- Accreditation from a professional organization such as the Better Business Bureau.
- Membership or affiliation with other reputable organizations such as the International Association of Professional Debt Arbitrators or the Chamber of Commerce.
- Reviews from previous clients.
- Years in business, etc.
Note, however, that debt relief results depend on each individual’s circumstances. These may include his or her capacity to save funds for negotiation, or pay the monthly amount as stated in his or her debt repayment plan.
As a logical alternative to paying off debt, debt relief has already benefited many individuals who have lost their jobs, racked up debt from medical bills, or generally having financial hardship brought by huge consumer debts.
Though we do agree that the latter needs a lifestyle change to avoid getting into such terrible situation again, a debt relief can lighten the burden they carry and give them a head start.
If you’re looking into a debt relief program as an alternative solution to your debt problem, give us a call at (877) 973-DEBTS to learn about our debt relief services.
Our debt consultation is absolutely free. Call us now. We can help you!
*Results are not guaranteed and may vary per client.