You’ve tried every which way to get your hands around your debt — but it’s not working. Nope. Your situation calls for a professional. Now that you’ve embraced that, you may wonder how to find credit card relief.
Here’s some information that will be of interest to you.
What Is Debt Relief?
Debt relief, specifically credit card debt relief, is any program that relieves you of debt sans the use of new financing. You have a variety of options that help you do this. The one you will end up with will hinge largely on your debt load, debt status, income and budget, and your credit scores and goals.
Debt Management
How this works is, a consumer credit counseling agency helps you establish a repayment schedule that you can manage. The agency then negotiates with your credit card issuers to lower or drop interest charges and stop charging penalties.
Once the card companies agree to be paid through the program, your program begins. You make a single monthly payment to the credit counseling agency, which allocates the funds to creditors as agreed.
By lowering or wiping out interest charges and fees, you can get out of debt quicker, even though you might shell out less monthly.Another benefit is that, since you repay everything you charged, this kind of won’t pinch your credit score. You may even see your score improve.
Would Debt Management Work For Me?
Depending on your circumstances, it can. In fact, it can be a good way to repay your debts that doesn’t hurt your credit. Be mindful that it only works if you can get a plan that comes in under your budget. You need to have the means to make these payments, just as you’ll need to learn to control your spending.
Debt Settlement
This credit card relief strategy entails paying back a percentage of your obligation to each creditor. Each creditor then discharges the balance and alerts the credit bureaus of the settlement.
How it works is, you establish a monthly escrow-like account with a debt settlement firm that works on your behalf, into which you’ll make monthly deposits to build up the cash you’ll need to fund your settlement agreements.Once that happens, the settlement company attempts to negotiate with your creditors. The aim is to get each creditor to accept a fraction of your obligation in exchange for discharge of your remaining debt.
After the agreement is struck, the funds are withdrawn from your account. The creditor then closes the account and discharges the rest.
The proviso to all this is to be able to make deposits, you will usually be asked to cease making your credit card payments. Naturally, this will damage your credit, at least for the shorter term. On the other hand though, you’ll be positioned to improve your score substantially once all of your obligations are settled.
Would Debt Settlement Work For Me?
Yes, that is if you work with a legit company that isn’t out to rip you off. A debt settlement program can be a good way to get out of debt faster for a fraction of your obligation. Just be certain the firm doesn’t charge fees in advance of any work, and that the company is accredited with an organization like the American Fair Credit Council.
So, now that you know how to find credit card relief, you’re on your way to a sunnier path of financial freedom.
