There are many different ways of getting into debt and as many or even more ways of getting out of it. Everyone knows or at least heard about things like credit counseling and debt consolidation, but there are also such things as debt resolution, debt roll-up and debt settlement. Due to the fact that there are many various debt relief alternatives, it is of great importance to learn about all of them in order to pick the debt relief option based on your particular financial situation.
There are a few things that anyone in a debt situation has to consider when choosing a debt relief program like monthly payments, total cost, time to debt freedom and impact on the credit rating. Credit counseling is one of the most preferred forms of debt relief. In basic terms, it is meant to assist you with distributing the amount of the credit card debt that you owe among your creditors. During credit counseling, your agency will be able to lower your interest rates and save a good portion of your time, but nothing more. In other words, with credit counseling program, you still have to payoff 100% of your debt. In most cases, your enrollment with credit counseling program will affect your FICO score and will show up on your credit report, so it is not advisable to seek credit counseling if you are planning on applying for a credit in the future.
Another very popular form of debt relief is so called debt settlement, also known as debt negotiation. On average, debt settlement programs run for about three years and are aimed at lowering the amount owed to as much as 50% together with lower monthly rates. It sounds good, but at the same time, debt settlement program will affect your credit rating. Nevertheless, it is one of the fastest and cheapest ways of getting out of debt while avoiding bankruptcy. The major trade off here is negative credit rating for saving a lot of money and it is up for an individual to decide what is more important in the long run.
There is one other way of getting out of credit card or any other kind of debt – debt consolidation loan. By applying for a debt consolidation loan you, basically, exchange one loan for another. In most cases it means taking a second home loan or refinancing your mortgage. The major benefit of such debt relief is reduction of interest rates and besides that it is tax deductible, but, in some cases, it can cause more harm than good resulting in prolonging your time to financial freedom. Be wise when choosing a debt relief program, get out of debt as fast as you can and stay out of it in the future.
Debt Free Counselor provides debt relief through debt settlement with free consultations for consumers experiencing medical or financial hardship and are overwhelmed by credit debt including credit cards, personal loans, medical bills, collection accounts, or other unsecured debts. You can fill out our application page and be contacted by one of our debt counselors or you can call now to be connected immediately – (877) 479 – 4545.
