Key Facts about Debt Relief Options

If you are finding it hard to keep up with credit card payments or medical bills, you are not alone, DeDebt.com can help! Millions of Americans are facing the same problem. Figures from the Federal Reserve show that the total consumer debt stands at $2.4 trillion. This represents $7,800 in debt for every citizen of the United States. Inability to pay bills on time reflects on one’s credit report making it almost impossible to access financing from traditional lenders. The good news is one can use debt relief solutions to get out of debt. Some of the debt relief options that are currently available include:

Debt Consolidation

Debt Relief Options
Debt Relief Options

This involves consolidating multiple unsecured debts into a single monthly payment. As a result, you end up paying lower interest rates, affordable monthly payments, as well as waivers on late fees. For example, the debt consolidation company may use equity in your home to provide a cash-out refinance. Debt consolidation comes in handy if you are finding it hard to pay credit card debts as well as utility bills.

Debt Management Plan

This involves negotiating with creditors on how best to settle outstanding debts. To start with, you have to sign up with a credit-counseling agency. The agency reviews your financial situation to determine how much you can pay comfortably every month. After this, the agency presents the proposal to your creditors for approval. If the creditors agree, you start making debt payments through the credit-counseling agency. Unlike other debt relief options, signing up for a debt management plan will not hurt your FICO score.

Debt Settlement

Debt settlement and debt management are two quite different debt relief solutions. Known as debt reduction plan, this form of debt help involves negotiating with creditors to reduce your outstanding debt balance. This means you end up paying less than what you owe.

Credit Counseling

Credit Counseling
Credit Counseling

Many people get into debt because they do not know how to budget monthly income. Figures from the Consumer Financial Literacy Survey show that 42% of Americans fare badly when it comes to basic money skills. For such people, credit counseling can prove to be invaluable. By working with a credit counselor, you will be able to understand how to plan, manage, and even reduce unnecessary expenses.

Interest Rate Arbitration

This debt help option involves paying your outstanding unsecured bills using a secured low interest loan. Benefits of using this approach include affordable monthly payments as well as eliminating multiple monthly payments. Furthermore, you will be able to live a stress free life without worrying about calls from creditors. Many people get into debt after losing their jobs. This makes it hard for one to pay utility bills, credit card debts, or even return money borrowed from friends and relatives. Should you find yourself in such a situation, it would be wise to seek help from Dedebt.com so that we may find the best solution for you. Hiding from creditors will not make the debt disappear into thin air. At DeDebt.com, we can help link you with top service providers who aid in debt consolidation, credit card debt settlement, signing up for a debt reduction plan, and credit counseling.

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