Oct
03
2011

Experts are there to guide you to get out of debt

Despite your best efforts, if you’re unable to manage your debts, you can opt for a suitable debt relief program. Read on to know about 4 debt relief options and you can choose one that best suits your financial condition.

Debt settlement program:

When you approach a debt settlement company, the representative will at first analyze your financial condition. He/she will suggest you the best possible method to save as much amount as possible to pay off your debt. He/she will create an account where you have to make certain monthly payments to raise your financial funds. In the meantime he/she will negotiate with your creditors to bring down the outstanding balance of your unpaid bills. When your creditors agree on a reduced payoff amount, the settlement company will use the accumulated funds to pay off the debts. Thus you become debt free by paying less than what you owe to your creditors.

Debt consolidation program:

When you find that you’re already missing out on your minimum payments, you can opt for this debt relief program. Here the representative of the company will take a look at your financial situation. On behalf of you, they will negotiate with your creditors to lower the interest rates on your bills.  You have to make only one monthly payment to the consolidation company and it will accordingly distribute the amount to your creditors. This way you pay off your multiple debts by making single monthly payments.

Credit counseling:

If you are unable to manage your debts yourself, then you can go for a credit counseling session. At first the counselor will conduct a detailed review of your financial condition. Then he/she will plan a budget of your living expenses and payment plan to repay your debt. After following their tips, if you’re still unable to repay your debts, then they may advice you to opt for a debt management plan, enrolling in which you can get complete guidance to pay off debt.       

Debt management program:

Getting debt relief under this program is only possible for those who are current with their debts or just falling back. When you enroll in such a program, they will first evaluate your financial status and will negotiate with your creditors to lower the interest rates on your bills/debts. Now you have to make only one monthly payment to the company and it will accordingly distribute your funds to your creditors. This will help you become debt free within a stipulated time period. If you’re regular with your monthly payments, then your credit score won’t get hurt.

Other than these methods, you can think of filing a bankruptcy when there is no other option for you to pay off your debts.


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