There is no single debt relief solution that will work for everybody. Every person in debt has unique circumstances, such as the kinds of debts they owe, how far behind they are on payments, interest, income, budget, and so forth. Maybe you’re having trouble keeping up with credit card payments and the interest and late fees are accumulating. Or perhaps you’re afraid of getting behind on your mortgage and losing your home. Whatever the case may be, here are some of the best debt relief options to think about.
Credit counseling / debt management plan
This is available for consumers. It typically allows you to work within your budget to come up with an inexpensive monthly payment for all unsecured debts. The agency you choose to work with will put you on a debt management plan (DMP) that may include a lower minimum payment on each of your accounts. The agency you’re working with might also get you a reduced interest rate. Credit counseling that involves a DMP might take anywhere from 3 – 5 years, depending on the amount of debt you have.
If you really do want to try to settle your debts no matter what, then you might need a third party to help negotiate a settlement with the creditors. This is among the best debt relief options for those who need assistance getting their budgets in order. When the settlement amount is reached, the firm you’re working with will send your money to pay it.
Debt consolidation loans / balance transfers
With a debt consolidation loan, you try to get a loan that includes enough money to pay off all of your debts. With them paid off, you can simply focus on making payments on the loan. You still might need to go through a debt relief agency who will help you get that loan. The other option is to start transferring debts from cards with high interest rates to another card with a lower rate. This type of card often requires that you pay off the transfer balance within a certain amount of time before you have to pay interest on it.
Bankruptcy is usually not considered among the “best debt relief options” since it is only intended for those who really have no other options and must file for it as a last resort. There is the chapter 7 bankruptcy, which involves going through credit counseling to prove that you really don’t have the money, nor will have the money, to pay off the debts. Each state has its own laws on the specific requirements.
Chapter 13 bankruptcy allows you to repay the debts within 3 – 5 years, and any debt that is left afterwards is discharged. This is an option if you make more money than what Chapter 7 allows.
Now you have some idea of your best debt relief options. You can get more details at CuraDebt. Free counseling sessions might even be available. It’s a really good, legitimate program that provides a variety of debt relief products and services.