Debt Relief Companies
If your credit card debts have spiraled out of control and you are falling several months behind on payments, you may be interested in finding out your debt relief options and how much you can potentially save through debt consolidation. Debt consolidation allows many consumers in Virginia as well as across America to combine multiple, high-interest debts into a single and more manageable repayment plan. Typically facilitated by companies that offer credit counseling services, debt consolidation programs can provide many consumers just like you relief from their high-interest credit card debts, as well as unsecured debts (like medical bills, utilities, student loans, department store charges).
By consolidating or combining your debts, the goal is to direct more of your payment into paying the principal of your debts versus just the interest, and reduce your debts at an accelerated pace. This goal is generally achieved by allowing you to make one, consolidated payment to a credit counseling agency, which in turn, distributes those funds to individual creditors.
Another popular debt relief option is called debt settlement, aka debt negotiation. Debt settlement is increasingly becoming popular among consumers who need relief from high-balance credit cards. Through settlement, debt specialists typically negotiate with creditors on your behalf to help you "settle" your debt for significantly less than what you owe.
These days, both debt consolidation and debt settlement have become popular alternatives to bankruptcy, which is generally considered the option of last resort, and has a more damaging and longer-lasting impact to your credit. See if you qualify for savings with a free debt relief analysis and savings estimate by answering just a few, simple questions. Start today.
Debt Consolidation Companies
For many consumers, skyrocketing credit card and unsecure debts are certainly serious problems that can result from any number of circumstances, including unemployment, high medical bills, or personal hardships. The good news is, many consumers, depending on their situation, can get relief through debt consolidation. The goal of a debt consolidation program, or a debt management plan (DMP), is to "consolidate," or combine, unsecured debts and debts spread across multiple credit cards into a single, more manageable and more structured monthly payment made to a credit counseling agency.
Coordinated by credit counselors, debt consolidation typically begins with a review of your income, outstanding debts, and other assets. This one-on-one consultation generally means that debt counselors will review your spending habits, debt amounts and other expenses, as well as add up the balances on your credit cards and the rates that you are currently paying. When credit counselors have a clear picture of your finances, they typically submit proposals to creditors, on your behalf, requesting lower interest rates and the waiver of late fees and penalties. Creditors that accept the proposals are added to the debt management plan. Credit counseling agencies, in turn, distribute those funds to creditors that are in the plan.
How Can Debt Consolidation Give You Relief?
For many consumers who have the discipline to watch their budget and stop relying on their credit cards for unnecessary purchases, a consolidation plan can likely help them get on a predictable path towards reducing their debts and potentially lead to savings. Keep in mind, however, that while it is the credit counselor's responsibility to request from your creditors a more lenient repayment plan, it is your responsibility to ensure that you have the funds available in the account set up by the credit counseling agency.
In addition, make sure that you understand how much savings you can potentially get, every month, with a debt management plan. Typically, your savings depend on several factors: the total amount of your debts, the current interest rates, and any late fees or penalties.
The bottom line is, if you are ready to tackle your credit card and unsecured debts, take the next step and find out what debt relief can do for you and your family. For many consumers, a debt consolidation plan can provide not only a more affordable and more structured payment plan, but it may also provide long-term budgeting skills. To find out your available debt relief options, request a free debt relief analysis and savings estimate today. Start here.