What Are My Debt Relief Options?
Did you know that the average household in the United States has almost $16,000 in credit card debt? With the combination of student loans, mortgages, auto loans, medical expenses, business loans, and other debts, people across the country are struggling.
Depending on your financial situation, including factors such as amount of debt, income, and other circumstances, you may find yourself leaning towards one of these options.
1. Debt Management
A debt management company will analyze your financial situation and negotiate with your creditors on your behalf to lower your interest rates. This can make your repayment terms longer, or lower your monthly payments, whatever makes it easier for you to pay back your debts. You will pay the debt management company a negotiated monthly rate between itself and your creditors, plus any fees they may charge. The debt management company will distribute the funds you paid to your creditors.
2. Debt Consolidation Loan
If you want to pay back your high interest debts all at once, you may choose to consider a debt consolidation loan. This is something you can do yourself. You can contact a bank or credit union to open up a debt consolidation loan, allowing you to pay off your current debts in exchange for one lower-interest loan with the bank or credit union. Be aware that with a debt consolidation loan, you need good or excellent credit to qualify.
3. Paying Off Your Debts By Yourself
Not everyone that is in debt needs the help of an outside party. For some, all it takes is a better budget and the willpower to stick to it. Know that you can also contact your creditors to discuss your situation and negotiate a repayment plan. However, you must provide evidence of financial hardship. Even so, your creditors are not obligated to negotiate with you, so you may need the help of a debt expert to fight for you.
4. Bankruptcy
If you are facing serious financial hardship and have little to no source of income, you may be considering bankruptcy. Chapter 7 and Chapter 13 bankruptcy are the most common forms of bankruptcy available to most consumers. Though bankruptcy is a drastic measure, it may be the right option depending on your circumstances. Know that following through with bankruptcy will have a dramatic effect on your credit, which may make it much more difficult to apply for or use credit for the next several years (7 to 10 years).
5. Debt Negotiation:
The Guardian Debt Relief Program
Debt Negotiation is an alternative to bankruptcy, credit counseling, and debt management.
Unlike debt consolidation and credit counseling, which requires repayment of debts in full, debt negotiation allows you to pay off just a portion of what you owe.
We negotiate with your creditors on your behalf to accept only a portion of your total unsecured debt balance. You will make monthly payments into a secure trust account, which only you have control over.
Guardian Debt Relief is an A+ rated, BBB accredited business that offers debt negotiation services across the United States
Our strong relationship with creditors and lenders may give you an opportunity to settle your unsecured debts at a fraction of what you owe.