Debt Relief Programs

For those looking for debt help, a common question is, “what are the best debt relief programs?” Well, it depends. However, this article will discuss 2 most popular debt relief programs and help you choose the right one that fits your financial situation.

Debt Consolidation Program

How does it work?

Debt consolidation provides debt relief by combining all of your unsecured debts, such as credit cards, utilities bills, medical bills, department store charge cards, personally signed loans etc. into one single lower payment.

Consolidation your debts can be the best debt relief option for you, if you currently have over $3000 in unsecured debts and want to keep some money by reducing your interest rates and combining all your debts into a single payment you can manage to pay for.

Benefits of Debt Consolidation:

  • Lower interest rate and monthly payment
  • Eliminate late fees and penalties due to multiple bills
  • Avoid debt collection calls
  • All bills are combined into one easy payment
  • Get debt free in 4 to 6 years, compared to an average of 10-15 years.
  • Positive impact on your credit score

Qualification for Debt Consolidation:

  • At least $3000 in unsecured debts, such as overdue rent, credit cards, charge cards, hospital bills, retail store cards, utility bills.
  • Ability to make a constant minimum payment every month
  • Won’t take on extra debt while on the debt consolidation program

Debt Settlement Program

How does it work?

With debt settlement program, you don’t pay what you owe, because the credit card companies are being asked to settle your debt.When you can’t afford to pay off your debt especially if you have already fallen behind on the payments, credit card companies may agree to “forgive” your credit card debt by reducing your debt by up to 60% or more.

Debt settlement may be one of the best debt relief programs for you, if you have more than $10,000 in credit card debt and your credit rating is hurting.

Benefits of Debt Settlement:

  • Cut down your credit card debt by a significant amount of money, 40% to 60%.
  • Flexible monthly settlement fund you can come up with the money for
  • Pay off debt in 1 to 3 years. A quicker way to be debt free

Qualification for Debt Settlement:

  • At least $10,000 in unsecured debts, such as credit cards, overdue rent, charge cards, hospital bills, retail store cards, bank loan, utility bills
  • Ability to put aside a minimum amount of money every month into the trust account that will be used to settle debt with your creditors.

Although Debt Consolidation and Debt Settlement are the most popular debt relief programs, there are also some debt options that might work better for your current situation.  Browse around our site and you’ll be surprised to find out some valuable debt advice to help you get out of debt fast.