Credit Debt Relief, Essential to One's Peace of Mind
Credit debt relief options come in different forms. Let us discuss them on this page and then you can make your own choice. Let us start with the first one which is credit counseling. This is my favorite form and my choice above all the rest for the simple reason that it will give you an overview of the whole situation.
Mind you, you have to be careful in the selection of a counseling program. Why? Because just like anything else, there are legitimate ones and some that could harm your credit which will only save you a bit, if at all. Pay no money upfront and ask before the start if you can quit anytime and if the counseling will cost you money. Don't commit for anything and once you feel uncomfortable you can quit and try another that may be a better fit for you.
An adjunct to the counseling program is the credit counseling which entails talking to the companies to lower the interest. This will save you some money, that's true, but remember that some of these are set up by the companies themselves so their mission is to collect as much as possible, not a credit debt relief, that’s for sure.
So don't let them put wool over your eyes knowing that what they collect goes to the company. Even when they say they're no-profit, just shrug your shoulders and move on. Another thing to think about is that this may go on your credit report as TPA which means third party assistance. This could be bad in the calculation of your credit score, sometimes as bad as a bankruptcy.
Another option of the credit debt relief program is debt settlement. This involves talking to the companies who hold your debt. Try to negotiate with them to reduce your debt load. It is kind of an aggressive way to do this but you know what? Quite a few have reduced their debts this way. Here's a company you may want to try.
In fact through a debt settlement program some have reduced their payment period from as long as twenty years down to a year or three years. You will notice a much lower monthly payment than before. So you see, this is a viable option for one who owes over $10,000 from a credit card company, that is, if you are careful in the selection of the company.
The other option in the credit debt relief is debt consolidation. This just means taking one loan to pay off a number of debts. Just make sure that you are really getting a lower interest rate that is fixed so they will not surprise you with an increase in interest rate down the road. People have found this convenient as then they will have to deal with only one monthly payment instead of several.
Again, just like with anything else there is a caveat, some form of warning. First, make sure that the consolidation company is making the payment on time. I wonder if you can ask them to send you a receipt to make sure. Or even better, find out where they send your payment and get the toll-free number and call them every once in a while to check to see if they receive the payment in a timely manner.
Even better is to require the consolidation company to tell you what will happen if they renege on the payment or if they delay sending the payment as this will impact your credit score. Make them sign that this is part of the agreement. Make sure too that they do not charge a very high fee for the privilege. Get all the pros and cons as going into consolidation as this will make it hard to discharge the debt in bankruptcy which is another way to get some credit debt relief.
As you can tell, bankruptcy is another option and so is ignoring the money you owe. Many have said that filing for Chapter 7 is not worth it so it should really be the last resort. As for ignoring the debt, unfortunately the other side will not. So there you are, all the options to get the credit debt relief.
Credit Debt Relief Comes in Different Forms
Credit debt relief comes in different forms to pay off debt like debt management, debt settlement, consolidation loans, bill consolidation, Christian debt consolidation and self-repayment plan. A good company will be able to help you find the best one that fits you. It should lower both monthly payment (only one) and interest rate, stop collection calls and waive fees. It should also avoid bankruptcy and should lead you to have a debt-free life.