Today, more and more people are turning to debt relief programs or plans, and with good reason. Many people have accrued over ten thousand dollars in debt, from credit cards, student loans, and many others. It is often not their fault really, there is a number of reasons for this, and one of the main ones is the economy.
Another reason is that when they were younger, perhaps they weren’t taught about managing money credit, debt, and how easy it can be to get overwhelmed. Credit card companies have to take some responsibility as well, people are bombarded with applications in the mail, offering low rates, but this is really only temporary.
Those that have these debts need a help, but finding the right debt relief programs are just as overwhelming. Below is a brief review of a few debt relief programs that are available out there to help you choose your best option.
Types of Debt Relief Programs
There are for profit and non-profit debt relief services where you pay these companies a certain amount and they spread this money over your credit cards and unsecured loans. The problem here is that many of these companies don’t work and can in fact make your life and problems even worse.
1. Debt settlement. Debt relief settlement is a program where the company negotiates with credit card companies to lower your outstanding balances. If you have a number of cards, they are all maxed out, and you can’t even pay the minimum payments, this is a solution for you. They offer one monthly bill, reduced or no late fees or overdraft charges, and these companies can stop people from calling you and harassing you for money.
2. Debt management. Debt relief management is one of two different debt relief consolidation programs where the company looks at your particular situation, and then negotiates with your creditors. They can help you pay your bills in a more affordable way. The benefits of these companies are that they reduce your interest, extra charges that have occurred are removed, and again, no more calls.
3. Do it yourself. You can also try to relieve your debt on your own. you can do this by contacting the different credit card companies to try to get your interest rates lowered and late fees removed. In some cases, if you are far behind, creditors may drop the amount of the charges so that you can pay in one lump sum, using a debt relief loan.
4. Bankruptcy. Bankruptcy is another debt relief solution. However, the new law is stricter and more demanding, making bankruptcy as a way to get out of your obligations is a lot harder, and this option can ruin your credit history for a long time.
Different Debt Relief Programs and Companies
Now it’s time to check your options. The idea is that you didn’t get into debt overnight, so don’t be in a rush to find the first debt relief company or program that looks good to you, and end up in a worse situation than you already are.
The other thing is that you may need to learn the budgeting and spending skills to prevent this from happening again. If not, you are going to end up back to square one sooner than later.
You can find a number of consumer advocate websites that review the best debt relief companies and learn from those reviews. They are an outside agency, and don’t work for any of them, so you will get an unbiased review of the programs to avoid scams and to choose one of the debt relief programs that is going to work for you and your situation.