If you want to be released from financial woes and anxieties, then consider debt relief programs to repay your bills through an affordable repayment plans. These programs help you get out of financial crisis by either reducing the interest rates or decreasing the payable amount. Take a look at the topics given below to know about the various debt relief options:
Debt relief programs - How they help to fix your financial owes
The popularity of these programs have increased as an increasing number of consumers are suffering from financial anxieties. Several people are facing troubles in meeting their financial obligations because of the poor employment opportunities and high cost of living. As such, these people need the help of debt relief programs to get back on their feet.
Check out the 6 debt relief programs that can help to fix your financial problems in different ways. Once you have analyzed the features of all the programs, choose the one which will solve your problem effectively.
Debt settlementWhat it is
This program helps to lower or reduce the outstanding balance on unsecured bills. This program is offered by the settlement companies who negotiate with creditors and helps you meet your financial obligations through a lump sum payment.How it helps to add spark in your financial life
A debt settlement program can help to add spark in your financial life in the following ways:
- You can carry on with your life without getting too many collection calls
- You can reduce your chances of getting sued and having your wages garnished
- You can bring down the number of collection calls
- You're able to meet your financial obligations without filing bankruptcy
- You can skip late payment fees and penalties
Consolidation programWhat it is
This program helps to make your monthly payments affordable by reducing the interest rates. The debt relief USA companies arrange a single and affordable monthly payment after explaining your financial crisis to creditors.
How it helps to solve all your worries
You can repay various types of bills through consolidation programs. For instance, you can pay off credit card bills through credit card consolidation program. On the other hand, you may enroll into a bill consolidation program to manage other bills smartly.
Read below to know how debt consolidation helps to solve your financial worries:
- It helps you get a customized repayment plan for you
- It allows you make monthly payments as per your affordability
- It reduces your stress by cutting down the number of collection calls
- It helps you manage bills comfortably through single monthly payment plan
- It helps you save on extra-fees and penalties
What it is
This program is all about budgeting and interest rate negotiation. The counselors of the debt relief USA companies negotiate with your creditors to facilitate a repayment plan as per your budget. You make a single payment every month to the counselors instead of creditors. The counselors distribute your money to creditors till all your dues are cleared.
How it helps to make your financial life interesting
This debt relief program helps to make your financial life happening and interesting in these ways:
- It helps you create a budget and manage money smartly
- It helps you save in interest rates
- It makes it possible for you to get less collection calls
- It helps to eliminate the additional fees and penalties
What it is
This debt relief plan makes you pay what you owe through a court monitored repayment plan. You can pay back your creditors either through Chapter 7 bankruptcy or Chapter 13 bankruptcy depending upon your income, debt and expenditures.
Bankruptcy drops your credit score by more than 200 points and due to this reason you may consider it as your last option to meet your financial obligations. Check out the reasons to avoid bankruptcy.
How a court monitored payment plan makes you happy
Read below to find out how a court monitored payment plan helps you lead a happy financial life.
- It helps to stop all the debt collection calls
- It helps to put an automatic stay on the impending lawsuits
- In Chapter 7 bankruptcy, you can get out of debt within 3-4 months
- It helps you begin a new financial journey
- It prevents creditors from garnishing your wage
Self repayment plan
What it is
This is where you don't need to get any kind of financial help from professionals. Here you try to manage your bills on your own by following the basic financial principles such as budgeting, saving, reducing irrelevant expenditures, etc.
How it helps you to get back on the right financial path
A self-repayment plan can help you achieve financial freedom in the following ways:
- You don't have to pay fees charged by professionals
- You can avoid being scammed by imposters posing as professionals
- You can have a better grip on your finances
Interest rate arbitration
What it is
This is where you obtain a secured loan from lenders or financial institutions at low interest rate to repay your current bills through lower monthly payments. You can use the loan to repay your credit card bills, utility bills, store cards, etc.
How it helps to reshape your financial life
Interest rate arbitration mainly helps you reshape your financial life in the following ways:
- It gives you the option to pay back your creditors at once
- It allows you to repay loans at a moderate interest rate
- It helps you make only one payment every month
If you have lots of questions about these programs, then have a look at our 41 Ways to compare and contrast major debt relief options to reach a decision. ^Top
5 Types of bills you can repay through relief options
Debt relief USA companies primarily help you get respite from high interest unsecured bills. They can’t help you repay your auto loans or mortgages. Those are secured debts. You may refinance those loans to fulfill your financial obligations.
Check out the 5 types of unsecured bills you can repay through debt relief programs or plans:
- Bills acquired through cash advance loans
- Bills incurred due to medical treatment
- Bills accumulated through credit card purchases
- Bills that have been assigned to collection agencies
- Bills accrued through utility services
Best debt relief companies - How to find them
You can find out the best debt relief companies in the following ways:
- Check the service background: You have to check out the profile and track record of the debt relief companies you are planning to work with.
- Go through the client testimonials: You need to go through the client testimonials to find out whether the existing customers are satisfied with the service of the company.
- Check the fee structure: The best debt relief companies normally have a moderate fee structure. You should work with a company that offers you best service at cheapest rate.
- Look for company accreditations: If you really want to get relief from debt, then you have to check out the company accreditations. Find out whether the company is certified by
TASC, IAPDA, etc before deciding to work with them.
Debt relief is possible even if you have a lot of debt. Take the initiative and talk to your creditors to see if you can work things out on your own. If you can't, then get some professional help to consolidate or settle your debts.^Top
How to get relief from financial stress quickly
Check out the few steps that you may take to get relief from severe financial stress.
- Get a firm grip on your expenses: Stop buying like you used to do it before. Give special attention to what you're purchasing from the market. Ask yourself if you really need the product. Reduce your expenses on the products that you absolutely don't need in your life.
- Be prepared for the worst situations: Build a financial cushion for the worst financial scenarios. Save enough money every month so that you can manage expenses during the emergency situations. Your emergency fund should have enough money to meet expenses in the next 3-6 months.
- Be careful about the new lenders: Do a comprehensive research on the lenders before borrowing money from them. For instance, there are several predatory lenders in the market. Avoid borrowing from them in order to save your financial life from fresh problems.
Debt Relief Act - 6 Facts you must know
Not many people are able to find out the best debt relief companies in USA. They end up working with the fraudulent companies. Federal Trade Commission enacted and made changes in the Debt Relief Act so as to help consumers to avoid getting scammed. Here are the few rules and regulations which you must know before working with a company.
- The companies can’t ask consumers to pay an upfront fee verbally or in writing
- The companies can’t make false promises to the consumers
- The companies have to inform consumers about the tenure and different aspects of the programs
- The companies can charge fees after negotiating/reducing/settling debt
- The consumers need to pay fee and save money in a dedicated account
- The consumers will have full access to the account
If you find that a company is not following the rules and regulations, then don’t sign any agreement with them. Negotiate with the company on your own instead. Check out the steps to become debt free and spend a good financial life.