Guest Post by Martha Jackson
Are you struggling to pay off debt but are unable to do so? Well, if that is the case, then you should not worry any more. You can get help with debt through various debt relief programs. This article highlights 3 debt relief programs that can help you with debt easily.
Debt relief programs
The 3 debt relief programs that can help you get out of debt are given below:
1. Credit counseling: When you are under a mountain of debt, then the first step you should take is to go for credit counseling. There are lots of credit counseling agencies in the market. These agencies have expert counselors to analyze your debt problems. After, analyzing your situation, they will suggest you a money management plan and a strict budget that will help you to handle your debt.
When you are still unable to reduce your debt load, then you have to hire the agency for a fee. The counselors of the agency will negotiate with your creditors in order to reduce the total amount of debt.
2. Debt settlement: You can get help with debt through debt settlement. This is one of the most popular debt relief programs. This program helps to shrink the total debt amount by 40% to 60%. Lots of debt settlement firms are out there in the market. You can choose any one of them. However, don’t forget to do your homework before hiring a firm as lots of scams are happening nowadays.
A debt settlement program works like this. You hire a settlement company. The debt counselors of the settlement company analyze your debt problems and advise you the best course of action. They create a trust account for you where you are required to deposit your hard earned money till you save at 50% of the outstanding debt. When you have accomplished that, the professionals/ debt counselors of the settlement company negotiate with your creditors to lower the payoff amount. If you are satisfied with the agreed amount, then you are required to sign a contract where you promise to pay back the agreed amount.
3. Debt consolidation: You can get help with debt through debt consolidation too. Through a debt consolidation program, you can combine all of your unsecured debts into one larger loan. This program is beneficial for those debtors who are struggling to pay down multiple bills. There are loads of financial institutions in the market that offer this program.
You’ll observe that your monthly debt payments decline when you use a debt consolidation program that stretches over a longer period of time. This implies that you have to make less payment each month and can have some spare cash in your hand.
A successful strategy will be to use a debt consolidation program to deal with various high-rate revolving debts. For example, you may have several credit card balances with high interest rates. With the help of this program, you may be able to manage that debt and reduce the interest rate (APR) that you’re paying.
Thus it is evident that you can get help with debt through credit counseling, debt settlement, and debt counseling. If you fail to handle your debt through these programs, then bankruptcy may be a viable option.