What Are the Different Options When it Comes to Debt Help?
Getting debt help may be the last thing on your mind when you are in debt. But here’s the thing: True debt help isn’t easy or instantaneous. And like any get-rich-quicker scheme, you need to be wary of anyone who guarantees to solve your debt problems with a snap of the finger.
If you owe more than ten thousand dollars and you have filed for bankruptcy, then you can definitely benefit from debt settlement. Filing for bankruptcy is like telling creditors that they won’t get even half of what they’re owed. If you owe less than ten thousand dollars and you have filed for chapter seven, an alternative to bankruptcy is debt relief option number two.
Debt consolidation is another debt relief option. This is when you take out a loan to pay all your existing debts. You make one single payment each month to the debt consolidation company who pays your creditors and manages them. They keep track of your payments to them and pass on your payments to your creditors. Most debt consolidation companies also offer debt counseling too.
If you have a lot of unsecured debts such as medical bills, personal loans, credit cards, or you’ve got a student loan, then you might want to consider enrolling in a debt help program. The first step you’ll take in enrolling in such a program is to approach a debt reduction company. These financial institutions don’t really help you out. Instead, they make money by charging high fees and making commissions from the debt consolidation loan. Their job is to convince you that you really can’t afford to pay the debt you’ve taken out.
In order to get debt relief and repair your financial situation, it’s a better idea to go for debt consolidation. But if you don’t have much debt and only have unsecured debt (such as credit card debt), then debt relief is enough for you. Remember, debt consolidation is just debt management. The debt relief company takes care of the management while you take care of paying the debt.
There are debt management companies that can do this for you. All you need to do is provide them with the information about your debt. They will then draw up a debt reduction plan for you. The debt reduction plan will include your regular monthly payments and additional fees to your debt management company. They will then make a monthly payment to your debt management company, and your creditors.