If you're currently in a financial situation that you're finding hard to manage, you're not alone. Americans have on average a half-dozen credit cards and nearly $10,000 in debt, growing rapidly thanks to high interest rates combined with insufficient income to pay it down. If you're tired of the cycle and you've decided to do something it, we can help you learn more about your options - including debt consolidation, settlement and negotiation options, bankruptcy, what works and what doesn't.
While relentless creditors can often make it feel overwhelming, there are reasonable options for people like yourself to get and stay out of debt without destroying your credit future. While there is no "magic" fix to make your debts disappear, an initial reduction of interest rates and/or principle on debts can reduce your overall payments to manageable proportions, which; combined with some financial reorganization is more than enough for most to get back on track. The most common approaches to managing debt can be broken down into:
In a nutshell, consolidation involves taking multiple debts and combining them into a single one, presumably at a lower interest rate. This alleviates the frustration of dealing with multiple creditors and allows the debtor to save money by reducing monthly interest costs.
Often used in conjunction with a consolidation program, debt settlement is when your or a third party negotiates with your creditors to reduce what's actually owed, including penalties, accrued and ongoing interest, and sometimes partial balance on the principle as well.
The most drastic of measures, in which a debtor declares the inability to repay their creditors in exchange for a "fresh start". Involves a court-supervised division of non-exempt assets to creditors in order to repay what's owed, and has severe long-term effect on ones credit.
"Debt management" is a phrase used to describe any combination of methods that may be used to help a person reduce and eliminate their debts. It is not uncommon to use a combination of settlement to initially reduce what's owed, followed by consolidating the remaining balance at a lower interest rate.
Getting your finances back on track is important not only for the present, but your future as well. Please take the time to learn about all your available options, and we wish you all the best in your journey to financial freedom and getting out of debt for good.