America used to be the land of the free and the home of the brave. Now America is the land of the struggling and home of the broke, and those that are broke are most likely in debt.
Consumer debt is only one part of the bigger picture, but consumer debt in the United States is over $13 trillion, and that includes regular loans, student loans, and mortgages.
Even though debt is a difficult thing to get from underneath, it’s not impossible, especially with the help of debt relief programs. Here are some tips about the best debt relief programs for you.
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Tips For Debt Relief Programs
When considering the best debt relief programs, there are some things you should look out for. Here are some to definitely to consider:
Bankruptcy
Full disclosure, this should NOT be your first option. However when all else fails this is an option to wipe your overwhelming debt, but it also has significant credit repercussions as well as court and attorney fees.
But there are options within bankruptcy that allow you a bit of maneuverability. Chapter 7 allows for most, if not all, your debts to be forgiven, and Chapter 13 allows for the reorganization of your debt.
It is reorganized into a new, more affordable payment plan and even allows you to retain some assets in the process.
Debt Consolidation
This option is mainly for loans, such as student loans and mortgages. In debt consolidation, you renegotiate the initial fees into lower, more affordable monthly payments and/or interest rates.
Or you can consolidate multiple debts into one loan to make it more convenient. If you carry more debt in the form of loans, this is a more viable option.
Debt Settlement
Also known as debt forgiveness, this one helps individuals with large amounts of debt negotiate to pay less money than what is owed as quickly as possible. This is another option to consider before settling for bankruptcy.
However, it does come with caveats like bankruptcy, such as fees that are charged by the debt relief programs/institutions.
Debt Management
Similar to debt consolidation, debt management calls for renegotiations for lower monthly payments or consolidation into singular monthly loan payments. This one, however, is geared toward credit card debt.
If you have a lot of credit card debt, like most Americans, then this is a good way to get it under control.
Credit Counseling
If your loans and debts are manageable but you don’t know how to get it under control, consider credit counseling. Just as the name says, credit counseling is receiving advice to guide you in the best way possible to manage your debts.
Most people do not have the financial savvy to free themselves from the debt hole they’ve dug for themselves. However, with counseling, you will obtain the advice necessary to fill that pit.
Getting Debt Under Control
Debt is a tricky thing to get a handle on. But it’s not impossible to get it under control with good debt relief programs. Using these tips, you can find something that can work for you and help you get your debt under control.
Take charge of your financial life and get from underneath your debt. Your wallet and your wellbeing will thank you. For other interesting articles like this, visit the rest of our blog.