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
Absolutely not. Your debt reduction program is a plan not a loan. It works by making a monthly deposit to a dedicated account that is used to pay off your loans or credit card balances. Although you can use the program to pay off a debt-consolidation loan if you have one.
Usually it is, but there can be restrictions. You will have to call and ask your debt consultants because laws vary widely from state to state.
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.