Did you know that in 2018, the American household debt reached a staggering $13.8 trillion? It is no wonder that now more than ever, individuals and families alike are desperately seeking programs and solutions for debt reduction for the debt they have accumulated.

If you have accumulated loan debt, credit card debt, or debt of any kind, you have likely experienced the dread of incoming bills, late notices, and phone calls from creditors and debtors. When you do know how to properly manage your finances or if you are unaware of all of the debt reduction resources you have available to you, seeking and receiving the help you require becomes next to impossible.

Taking the time to familiarize yourself with various debt forgiveness and relief strategies while also learning about various debt forgiveness programs that you may qualify for is the first step to truly regaining complete and total control of your financial outlook and future.

Strategies for Debt Reduction

Whether you have struggled to properly manage your finances your entire life, or if you have recently encountered financial hardship, it is important to know strategies for debt reduction and debt forgiveness that can come in handy when you need them most. Some strategies for debt reduction include:

Debt Forgiveness

If you are having trouble keeping your head above water financially and you are not able to utilize additional resources or programs, you may be considering a debt forgiveness program. Debt forgiveness programs are currently available in the US and often require individuals to go through bankruptcy court in order to progress with their current case and claims.

What is Bankruptcy Court?

The bankruptcy court is a court system that assists individuals and business owners alike in the process of managing financial disputes or filing for bankruptcy. The bankruptcy court in the US provides US citizens with the option of filing for Chapter 7 Bankruptcy as well as Chapter 13 bankruptcy.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the process of alleviating all of the debt you have accumulated to your name or with your business in exchange for property or other assets you own with debt forgiveness solutions. If you do not currently have any disposable assets to your name, it may still be possible for you to file for Chapter 7 bankruptcy if you are willing to allow your credit score to take a hit. In some cases, it may take an individual up to 7 years to fully rebuild their credit score after filing for bankruptcy depending on the circumstances surrounding their case as well as their personal history with financial struggles or debt.

Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy is another solution available from the US bankruptcy court. With Chapter 13, an individual is required to enter into a new debt repayment plan to pay back their debts in a set amount of time. Debt repayment periods may last up to 60 months, or 5 years, depending on the amount of debt you currently have to your name. If you successfully make all of your Chapter 13 payments required by creditors and debtors throughout your debt settlement and repayment program, you will then be cleared of your debts.

Choosing the Right Solution for You

When you are faced with the choice between filing Chapter 7 bankruptcy, Chapter 13 bankruptcy, or working with debt reduction, debt forgiveness, and consolidation companies, making a decision can quickly become stressful and overwhelming, especially if you are inexperienced in the field. Working together with a professional is one of the quickest ways to alleviate stress and worry associated with financial debt and monetary stress. If you are not sure where to begin when it comes to finding financial relief you need, reach out to a professional debt analyst or financial management provider to gain the relief and peace of mind you deserve.

Debt Relief

Debt reduction and debt forgiveness programs and resources are also available to individuals who are unsure of what to do next when it comes to tackling and paying off their debts. Not all debt programs operate in the same manner, which is why it is so important to familiarize yourself with your options and to work with a professional debt analyst to determine the best route and course of action for your debt individually.

Some of the most common types of debt reduction programs include:

Pros of a Debt Relief Program

Some of the advantages and benefits that come along with choosing a debt reduction program to minimize and eliminate your debt include

Cons of Debt Relief Programs

While many debt relief programs provide a number of benefits and advantages, it is also important to note that some programs do come with drawbacks. Some of the most common drawbacks of a debt reduction program may include

Having the ability to properly and effectively manage your finances is essential, especially if you intend to apply for and use credit cards or other debt that you have taken out in your name. Once you are familiar with programs, resources, tools, and solutions that are available for you to use while managing your finances, it is much easier to find a debt relief route or program that is right for you.

Familiarize yourself with various debt forgiveness, debt reduction, and debt relief options to regain complete and total control of your financial outlook and future.

Debt Relief Assessment