The problem that many people today are facing is excessive debt and poor money management. This combination will force you to use all of your available resources in order to clear your debt. Luckily, there are numerous debt relief solutions or “approaches” that can help you reduce your monthly payments, lower your debts, save money on interest, and get out from under debt in a relatively quick pace. These debt relief solutions typically consist of debt consolidation, debt management through credit counseling, debt settlement, or bankruptcy.
Among the various debt management methods available, debt consolidation is probably the most widely used option. Studies show that a national average of sixty percent of Americans are currently seeking some sort of relief from high levels of unsecured credit card debt. Unfortunately, debt consolidation comes with a lot of negative aspects. To begin with, you will have to obtain approval for any loan that you secure through the program; this could prove difficult if you have poor credit or no collateral.
In addition, a major drawback of debt consolidation programs is that you will generally pay a lower interest rate than you would without the program. This is a great benefit if you intend to pay off several high interest debts but it becomes an issue if you intend to do this in a short period of time. This lower interest rate could add up to thousands of dollars over the course of paying off your debts. On top of this, many creditors will not offer this type of debt consolidation because they receive higher rates from the original source of the loans. On top of this, if you are unable to make your monthly payments for a few months, your lender may elect to repossess your property. The last thing that you want is to lose your home and be forced to start all over with a fresh start.
If you need financial freedom, it is best to look for a debt management plan that will work for you. There are some excellent non-profit organizations that can assist you in consolidating your credit card debts into one convenient payment. They will work with you and your creditors to reduce your interest rates and eliminate up to fifty percent of your debt. You will also benefit by having a fixed payment that you only pay when your debt management plan is active.
Although you may see a great benefit in using a debt management plan, credit counseling services can also provide similar relief. Many credit counselors at these agencies are experienced in dealing with credit card companies. They will work with lenders to lower interest rates, eliminate late fees, and reduce overall balances on your accounts. In addition to being a relief from stress and high interest rates, credit counseling may also be the answer you are looking for if you want to avoid bankruptcy and avoid negative credit reports.
If you are facing a mountain of debt, and feel like you are on the verge of losing everything you have worked so hard to acquire, do not hesitate to try out a credit counseling service or a debt settlement service. Both programs can help you get the relief you need. Discuss both programs with your local Gilbert debt relief company, as they are best able to advise you on which option may be best for your situation.