Debt Relief Programs

by on March 22, 2012

The process of choosing any of the debt relief programs to eliminate the burden of debt is a wise decision. Rather than drudging in debt over a long period of time, you need to offload the burden as fast and as easy as possible. The are a number of debt reduction programs that can assist you in becoming debt free without much stress. The most common debt relief programs include; debt consolidation, debt settlement, debt management, DIY settlement plan and finally bankruptcy. Each of the mentioned programs has its benefits and can be modified to suit specific individual circumstances.

The advantages of debt consolidation programs involves the relief company negotiating on your behalf to attain better interest rates on the amount accrued while making one only monthly payment for the entire debt balance. The negotiation ability of the debt reduction firms has the benefits of attaining lower interest rates and monthly repayments, reduced or fully waived default charges, single monthly debt repayments and shields you from the constant harassment by the creditors. These programs have two subsets that are; credit card consolidation where multiple credit card debt is consolidated into one, and the bill consolidation where the unpaid bills for utilities can be cleared using credit cards and other accounts that will be later settled.

The second debt relief program is debt settlement. In this case the the debt relief company negotiates with the creditor to reduce you debt similarly to the credit card consolidation where you are allowed to make minimal monthly repayments. The advantages of this programs includes; agreement to be making single monthly installments, waived or reduced default charge in addition to the over limit penalties, elimination of legal confrontation and attachment of your incomes, protection from creditors’ harassment and elimination of being declared bankrupt.

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Debt Relief Programs

The third program in debt relief is debt management where the person enrolls a credit counseling firm to analyze the debt situation and negotiate with the creditor on the person’s behalf. This assists in allowing the person to pay the accrued debts conveniently by making the monthly repayments to the credit counselor rather than the creditors themselves. The credit counselor then distributes the payments among the creditors evenly, or according to the agreed percentages. This program has benefits such as lowered interest rates, lower monthly installments, waived default charges or other related fees, and the creditors are prevented from harassing you.

This is what a lot of consumers are going through and they are just fed up with having to deal with rude creditors who harass them on a constant basis. There is a real way for your pay your debts and rather than having to file bankruptcy and even have your credit score plummet, privates companies are here to help you get a grasp on your debt so it doesn’t take you under. Remember, there is hope and it is by professionals who have helped consumers like your reduce their debts too. In fact, with this economy, more people are in debt that are not!!!

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The fourth debt reduction program is the DIY repayment plan, here you indulge in clearing your debts on your own without seeking for professional assistance. In this process, you list all your pending debts, prioritize them according to merit and come up with a schedule of how to pay them while still managing your day to day expenses. This is advantageous in that you clear the debts on your own, there are no proxies involved, and you get to learn and utilize the lessons in managing your finances.

The last of the debt relief programs is bankruptcy. This is the last option in debt relief that is taken when all other programs fail to work. Bankruptcy is a debt reduction program that involves the court’s intervention. However, this is very risky for your credit score record gets tainted and you become illegible for any credit.

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