Are you drowning in debt? Are thoughts of unsecured debt keeping you awake at night? For many consumers, debt relief is a viable solution to unmanageable debt. And it just may work for you.
Fortunately, there are several ways to reduce debt, interest rates and fees – and pay it off faster than you ever thought possible. This can be done by working with financial professionals who specialize in debt relief, who can negotiate debt reduction, lower rates with lenders, and help you with a budget that keeps you on the right course.
Some of the professional credit card debt relief programs that don’t require to take out a consolidation loan include:
Credit Counseling, or Debt Management Programs
Yes, you can. Many people like to keep one or two cards out of their debt program to use for emergency finance. But generally, you should put all cards with a balance of more than $500 in the program, because that will make it easier for your debt consultants to negotiate a settlement.
That depends on your situation. Debt relief companies can help you pay off your unsecured debts, such as credit cards, medical bills and personal loans, but not secured loans such as mortgages.
If you successfully complete the debt relief program you should have more money available to pay off mortgages and car loans. This means a person who has no secured loans can become debt free through a debt relief program.
Most debt relief companies never charge a fee until the debt has been settled. This means they will not make any money until they settle your debts. Any fee they charge will be included in the monthly savings program you will participate in.
The fee will vary from state to state. To learn how much the fee is, simply ask the debt consultant handling your case.
That really depends on your credit score. If you have a good credit score your debt consultant might be able to help you avoid being reported to the credit bureaus.
Note: some creditors might still report you to credit bureaus if you take out a debt settlement plan. Unfortunately, no-one can help you fix a bad score, but the score can improve over time if you get a record of making payments on time.
Your debt relief consultants cannot get rid of interest or late fees that you accrued before joining the debt relief plan. But your debt relief consultants may be able work out a settlement that can help you avoid future late fees.
Please note that interest will keep accruing as long as you have an unpaid balance, even if you are in a plan. The only way to stop interest from accruing is to pay off the balance.