The beginning of a new decade is always a good time to review your finances and set goals for the next ten years ahead. At this time, the average American household has around 137K in debt, including student debt, mortgage debt, medical debt, credit card debt, and vehicle or personal loans.

Even more cause for concern is the fact that in the year 2000, the median debt was only around 51K. In twenty years, the average debt level increased by 268%!

As you can imagine, this kind of financial burden can be almost paralyzing. When you are overextended, all it takes is one misstep or an unforeseen event for things to start unraveling quickly. If you have found yourself over your head in debt, debt relief programs help to provide financial relief and debt reduction services.

Debt Settlement Services Help You Restructure

There are too many reasons why people get into debt. When properly managed, having available credit offers consumers a fast and easy way to finance or pay for larger purchases, such as vacations, vehicles, homes, home repairs, and emergencies.

However, if you used credit irresponsibly and you run into a bump in the road, such as loss of income, this can have a devastating effect on your way of living. As soon as you fall behind or make a late payment on accounts, your debt starts growing and accumulating fees and penalties that put you even further behind financially.

For homeowners, it can take as few as one late or missed payment for the lender to begin the foreclosure process. When you are unable to make a mortgage or other type of payment, it is always best to contact the original lender to let them know your situation.

If it is a temporary situation and a first-time request, most will work with you. Depending on the case, your creditors may agree to waive a late fee, penalty, or reporting a late payment with the major credit reporting agencies, Equifax, Transunion, and Experian. However, if your account goes in arrears for sixty, ninety, or one hundred and twenty days, this is usually the tipping point where everything snowballs.

Unpaid accounts could get sent to collections. Your credit lines could get frozen. Overdue collateral backed loans for cars could result in repossession.

Debt reduction services help consumers of all debt levels to get a better handle on their financial future, and help to position your family for more stability, or, in the case of filing bankruptcy, helps to halt utility disconnections, repossession, and foreclosure.

All of these options offer a way to restructure debt or get an entirely new fresh start.

Get Control Of Your Debt

If you feel overwhelmed by debt with no way out, you can take comfort knowing that you have plenty of options available to get yourself out of debt once and for all.

The first step in learning where you’re at is by checking your credit report and credit score. One reason to check your credit reports is to get a full list of creditors, as well as the amount of money that you owe them.

Your credit report contains details on all of your total number of accounts, payment history, credit card use, debt-to-income-ratio, overall credit age, hard credit inquiries, and derogatory statements, including collection accounts, tax liens, and public records.

By knowing exactly where you stand with each creditor, you can start to put a plan of action together to repay or debt settlement. When you work with debt reduction services, you can rely on them to help in debt settlement and debt reduction.

When reviewing your credit report, your debt settlement company will likely ask you if you see any inaccurate information or accounts you don’t recognize.

According to the Federal Trade Commission or FTC, one in five people in the US has erroneous information on their credit reports. This inaccurate information can negatively impact your overall credit score.

If you notice inaccurate data, you or your debt settlement agency can contact the credit reporting agency to dispute the entry on your report. If the creditor fails to respond with the necessary documentation to the inquiry from the CRAs (Credit Reporting Agencies) within a time, usually 30 days, these items get removed from your credit report.

Typically, most entries on your credit report last for an average of seven years. If you notice older items listed on your statement, these records will eventually fall off of your report without further actions. Generally, these entries have a limited effect on your credit score.

Items that are likely to have a more significant impact on your creditworthiness and credit score are the things you’ve been doing lately. Credit missteps such as recently missed or late payments on credit cards, your home, and any types of personal loans will drop your score substantially. Other factors, such as hard inquiries or requests for your credit profile to open up new lines of credit, can also have a considerable impact on your creditworthiness, as determined by the major credit reporting agencies.

To help curtail further action from creditors, such as lawsuits or harassing phone calls at home or work, debt settlement companies work on your behalf to negotiate your debt and simplify your payments.

Simplify Debt Settlement Repayment

Debt settlement is a way to get out from underneath overwhelming debt. Generally, the more required payments you have to make in a month, the more likely you are to miss a payment by accident or through no fault of your own.

Debt relief programs are ideal for eliminating or reducing the overall payments you make in a month, late fees, over-limit penalties, and outsized interest charges.

Consolidate Your Payments Into One

Having multiple due dates every month can cause unnecessary stress, especially when you are already living paycheck to paycheck or have due dates that fall inconveniently fall in between your scheduled payment dates.

When you are working with a debt settlement company, they help to alleviate the pressure of having to make multiple payments to numerous creditors.

Instead of having to scramble and stress out about all of your due dates, debt relief programs speak with your creditors to negotiate a lower balance, lower interest rates and halt collection calls.

After finishing all the groundwork, consumers who use debt reduction services end up having one affordable payment that helps to simplify outgoing payments and offers an opportunity to put a financial plan and set a realistic budget.

The advantages of consulting with debt reduction services include the following:

Sometimes it’s hard to see a way out of a difficult financial situation when you’re living in the middle of it. When you seek the advice of an outsider, they can offer beneficial feedback and alternative solutions to help you unstick yourself from a troublesome position. When you’re having trouble seeing the proverbial “light at the end of the tunnel,” they can help to offer a path back to financial redemption and stability.

When you are carrying a substantial amount of debt, only making minimum payments is sure to keep you living with little excess cashflow. It can be hard to make ends meet when all your creditors have dibs on your income and revenues. By consolidating your debt or working with debt reduction services, they can offer a streamlined solution for all your financial woes. They work with all of your creditors to settle the debt on your behalf. After the details of the agreements get worked out from all sides, you follow the term of the debt relief programs.

Reduce the number of outgoing payments you need to make every month. Statistically, the more payments you need to make in the month, the more chances you have to potentially miss a payment, and cause an avalanche of negative financial fallout.

When you consolidate debt from several accounts, you likely reduce your average overall interest rate. Any money that you save on interest can get applied to savings or other living expenses. For instance, if you have three credit card accounts charging 27 percent interest, you’re paying .27 back in interest for every dollar you borrow and don’t pay off immediately. If you can combine all three of these accounts into one account with a lower interest rate of even 15 percent, your repayments go further towards eliminating the principal of the loan. As you can imagine, these percentage points matter when you are getting your financial house in order.

Poor financial planning and debt management can result in higher levels of stress. Getting your finances under control offers several physiological benefits. Linked to the worsening of several health conditions, including Alzheimer’s, diabetes, obesity, heart disease, depression, gastrointestinal issues, asthma, and other mental and physical health issues. Stress reduction helps people function and feel better.

Get A Fresh Start

Since every person’s financial situation is unique, each debt settlement offer is likely to vary. Regardless of which debt reduction services you decide is best for you or your family, this offers a chance to get a fresh financial start.

After consolidating debt or filing for bankruptcy, it’s essential not to fall back into bad habits of borrowing or to overextend yourself financially. In many cases, the terms of your debt consolidation loan or your legal filings may prohibit you from seeking new credit or loans while your case is working its way through the court system. To avoid complications and potential delays, it is in your best interest not to apply for or seek new credit while you are going through the debt settlement process.

If you are already having trouble handling your existing debt loads, there is no need to assume the responsibility of added debt while you are on the path to a fresh financial start. Not to mention the fact that your actions could raise the eye of your debt reduction services, your bankruptcy attorney, your appointed bankruptcy trustee, and your creditors. In some cases, it might cause delays or nullify your filings.

The end game for all debt relief programs is to help the end consumer gain control of their finances.

Regardless of which debt reduction services you choose for your debt settlement arrangement, it is critical to learn debt management, financial responsibility, as well as budgeting and healthy spending habits. Most likely, you will get required to take credit counseling or financial literacy classes to help with being more responsible about spending.

It’s an excellent time to assess your situation and make tough decisions. For instance, if you’ve fallen behind on your mortgage, you might have the option to use a short sale to sell your home quickly and get out from underneath the debt.

Other options that may be available include refinancing the property, or filing chapter 13 bankruptcy to renegotiate the terms, or using a chapter 7 bankruptcy to liquidate the property and any financial responsibility for the home. While not ideal, all of these options offer consumers who are over their heads in mortgage debt a way to get out of the negative situation.

If you are unsure which approach is best for your situation, seeking the guidance of debt relief programs specialists, a financial advisor, or a bankruptcy attorney is straightforward. These experts will listen to your position and help you to explore your options and offer their advice on the most favorable course of action to take.

Monitor Your Credit Report

Since you are making changes to your finances, it is crucial to monitor your credit throughout the debt settlement process.

Depending on the debt relief program you decide to take, you should see things shifting around on your report. These changes could include the outstanding balance you owe, the date of last activity on the account, the account status, your number of active accounts, payment history, account age, and credit card use.

The longer that you maintain responsible use of credit following debt relief programs or bankruptcy, the more your score will improve, and your credit file will solidify.

Ideally, with the opportunity to get your existing debt under control early on, you’ll be able to develop healthier money management skills that last the rest of your life, so you don’t have to relive the experience again.

If you are ready to make the next ten years better than the last ten years, debt reduction services help align you for greater financial success.

Mounting debt creates overwhelming financial situations for millions of Americans who find themselves borrowing from Paul to pay Peter each month, getting themselves deeper into a financial crisis than the day before. If such a situation occurs, quick action may prevent future disasters. Far too many people fail to comprehend the seriousness of the debt until it’s too late, and they’re in over their heads. Do you need a debt relief lawyer? What can you do to get out of debt?

Getting out of debt isn’t easy, nor will it happen overnight. It takes diligence and effort, and maybe even a few sleepless nights. But, when you see your credit score climb and hear ‘yes’ to more loan applications, it all suddenly becomes worth it. With this in mind, many people cannot get out of debt, not for lack of desire, but instead a lack of money. We all wish there were a real money tree in the backyard that allowed us to pick off the day’s blossomed bills, but that is not reality. It’s not how things work, as we all know. You only earn money when you work hard every day. How nice it would be to pluck cash off of the tree every day, but in reality, one problem or mishap is all that it takes to create a devastating financial downward spiral that’s nearly impossible to get out of without some help. But, do not assume that you need a debt relief attorney. There are many options available that can help clear off your debts without a debt relief attorney.

Whether it’s mounting medical bills, credit cards, or other debts that stops you from sleeping at night, there is help and hope.

How does someone begin to get out of debt when they’re thousands of dollars behind? The first step in successful debt elimination is creating a debt relief plan. Consumers have several debt relief options available from which to choose from to begin the process of getting back on the right financial path. Each option includes pros and cons, which should be evaluated ahead of time. The right debt relief option for person A may be the worst for person B. That is why research is so important. You may want to talk to a debt relief attorney for more information, although that isn’t a requirement.

Since you won’t need a debt relief lawyer to use most of the debt relief options available, there is more money in your pocket to put towards the debts you so desperately want to eliminate. There may be a small fee should you choose to consult with a debt relief lawyer, which varies from one provider to the next. This is a small amount and well-worth the expense at the end of the day. The guidance and information offered by a debt relief lawyer is immeasurable and certainly provides a clear path to follow to get the results that you want.

If you prefer to keep all of your money in hand and avoid any debt relief attorney consultations, that’s perfectly fine as well. Tons of information is easily accessible online, at the public library, and via numerous other sources so hiring a debt relief attorney isn’t necessary. Use all of the information available to help you learn more about debt relief options and how they may benefit your situation without the need for a debt relief attorney on the case.


When to use Debt Relief Solutions

How do you know it’s time to use one of the debt relief solutions (or even call a debt relief attorney) available and when things are still under control? There isn’t a one-size-fits-all answer, although common signs often indicate that it’s time to take some of the weight off your shoulders and find a debt relief solution that works for your needs. The truth is, almost anyone can find themselves in an advantageous position when they opt to use one of the available debt relief solutions.

A debt relief lawyer often tells his clients to follow the five-year rule. If you don’t foresee yourself paying off the debts within the next five years, consider using a debt relief solution. If creditor calls and letters cause more stress than fathomable and you’re ready to pull out your hair, it’s time to find a viable debt relief solution.

Don’t Make These Common Mistakes

When you’re overwhelmed and worried about your financial future, it is easy to agree to payment plans and fees that you cannot pay or that you may not owe. Some people also think too freely when they’re without a debt relief attorney. Rather than make rash decisions in the heat of the moment, take the time to research every option before you agree to any plan. Making even a small mistake when dealing with a creditor may cause trouble that no one wants to deal with, especially at a time when debt settlement is fresh on the mind. What are some of the most common mistakes you want to avoid during the debt relief process?

 – Never pay an unsecured debt (i.e., credit card) to pay a secured debt (i.e., car payment) No matter how big the creditor’s threat, this is a mistake that can cost you personal belongings.

 – Talk to a debt relief lawyer if worse comes to worst, and you’re unsure where to turn. A debt relief lawyer has advice and information that he can give without hiring him.

 – Never borrow against the equity in your home. Debt consolidation (we’ll discuss this later) is one of the debt relief solutions that may offer a home equity line to repay debt. 

 – Do not withdraw money from a retirement fund to pay off a debt. This includes both federal and state retirement plans.

 – Do not make quick decisions, especially over the phone with a creditor. This may leave you susceptible to agreements that you aren’t comfortable with and potentially other risks. Always take time to research options and evaluate the matte before making an agreement where your finances are concerned.

While this is an incomplete list of mistakes made during moments of stress, it does include some of the biggest and most common mistakes. Do not get yourself in over your head or cause more worry than you started with by participating in any of the above tasks. Debt is scary, but solutions help ease the burden -and total amount due. Accruing more debt or trading debts certainly isn’t the best idea in most situations. (There are exceptions to this, which we’ll discuss later.)

Debt Management Plans

 Debt management, sometimes called debt settlement plans, are tricky. Most companies offering these plans encourage clients to stop paying their debts and put the money into a protected account they manage until enough cash accumulates to offer a settlement. Not only does the debt management plan cut the interest fees and penalty off of the total amount due, but they may also lower the monthly payment for all of your payable debts. 

On the downside, you lose access to all credit cards while under the debt settlement/management plan. Any cards currently used are canceled, and you can apply again only when the plan is repaid. Additionally, failure to repay the debt under the debt management plan may leave you unable to get a credit card again in the near future. Sadly, many people that use the debt management plan renege on the contract, which leaves you susceptible to future hardships.

A credit score isn’t affected by a debt management plan; however, since you’re paying an agency and not the creditor itself, you’re left open to fees, collection calls, and possible legal actions while you’re negotiating. Many people decide that it’s time to find debt relief when creditor calls and letters become overwhelming, so this is something to keep in mind. It typically takes four-six months for a settlement to begin, but many delays may require a more extended time period. 

Credit Counseling

Education is power, especially for a person overwhelmed in debt. A credit counseling course provided by a licensed provider can make a major difference in your financial future and well-being, giving you the knowledge to prevent future mishaps. Costs of credit counseling vary. It’s a low-cost, extremely beneficial service that almost anyone can benefit from.

Debt Consolidation

Millions of Americans struggling with debt turn to consolidation loans for help every year. It’s one of the most commonly used debt relief options around aside from debt settlement, but like other options, it’s not without its flaws. Anyone who is considering getting a debt consolidation loan should heavily weigh the pros against the cons before making such a decision. Some consolidation loans rely on home equity, which, as previously mentioned, is never ideal to use to repay a debt. Although debt consolidation loans won’t impact your credit, opening up additional lines of credit during this time could cause you to swoop back into the downward spiral of financial destruction. 

You won’t need a debt relief lawyer to file debt consolidation, as many people assume. It’s undoubtedly okay to hire a debt relief attorney should you choose, but realistically possible to handle matters yourself. Many people consolidate their debts every year. If you have the time, contact numbers of your creditors, and a bit of persistence and patience, you certainly have the same skills and power potential as anyone else. 

Consolidation loans work by combining all of your debts into one payment each month. The monthly payment amount is based on a predetermined amount affordable with your current financial situation. Most loans must be repaid in a 60-month timeframe, but this varies from one consolidation loan to the next.

DIY Debt Relief

Just about anyone can handle their own debt relief if they choose. Considering that a tax relief lawyer often charges thousands of dollars for his service and other options have their flaws, a growing number of people want to handle their own debt relief needs. It’s pretty simple to pick up the phone, call a creditor, and explain your situation. You can ask for an offer more suitable to your situation or even if they’ll reduce or eliminate interest fees and other penalties. Most debtors are willing to work with those who attempt to clear the debt. At worst, they can tell you no, but it never hurts to give it a try.

This may be another time in which consulting with a tax relief lawyer benefits your needs. If your debts are immeasurable and such options offer no help; you may consider getting a credit card or loan to repay the funds if it lowers the overall bill. Contact a debt relief lawyer if you need help determining if this option is best.

Pay Off the Balance

The simplest way to clear all of your debt and start a clean financial slate is by simply paying off the balance. Although, if paying off the balance was that simple, you probably wouldn’t have considered calling a tax debt lawyer or other debt relief solutions. Many people learn their situation isn’t as bad as it seems once they sit down, fix a budget, and determine their debts and what they can afford to pay. Your effort in reducing debt goes a long way. 

Sit down and determine your finances and if repaying the debt within five years is possible. Perhaps you want to use a debt settlement plan to help at this time. Or, credit counseling may offer the sound tips and advice necessary to improve finances in the future. If you can eliminate the debt in the next five years, you’ll save yourself a pretty penny in penalties, interest fees, etc. And, if you do it without the aid of a debt relief attorney, you’ll save even more money.


Bankruptcy is the final debt relief option a person should use. Although it has earned a bad rep amongst consumers, bankruptcy actually helps people who otherwise would be unable to recover from their debts. It’s not as horrible as most people make it sound, although it’s true you’ll need a debt relief attorney should bankruptcy become your debt relief choice. Bankruptcy is far too complicated for the average individual, and you want things done the right way since it’s your opportunity to make a fresh start after mounting debts. 

Chapter 7 and Chapter 13 bankruptcy options are most popular, one clearing all of your debts, the latter providing a payment plan that fits within your budget. Chapter 7 is used most often, although you may declare debt relief using bankruptcy only once in 7 years. It clears all debt from your slate, except child support payments, tax payments, and student loan debts. 

Work Your Way Out of Debt

Debt settlement, DIY options, consolidation loans, management plans, and bankruptcy are the main techniques used by people overwhelmed in debt who are looking to make a fresh start and get their debts paid and finances in order. These debt relief solutions help millions of struggling Americans find the help they need to get back on the right financial path. Perhaps one of the options can help you get back on the right road.

If you have any questions or need help getting out of debt without the extra cost of hiring a debt relief lawyer, contact us today.

Debt Relief Program Options

Debt settlement, also known as debt relief or debt adjustment, is a strategy in which you pay far less than the amount you owe by promising a substantial lump-sum payment to the lender to resolve the delinquent debt. Consumers can settle their own debts or use a debt relief program to do it on their behalf. Depending on the situation, debt relief programs can vary from 10% to 50% of what you owe. Ironically, borrowers who sign up for debt relief programs because they are unable to manage their debt burdens – but who still make payments, including irregular ones – have less negotiating power than those who have never made payments. Therefore, their first step must be to stop making payments altogether. As the consumer starts making settled debt payments, credit scores will typically recover over time.

Debt relief does not always mean paying off or eliminating debt all at once. In many situations, reforming and reorganizing debt is merely a strategy for making transactions more manageable. It benefits the borrower, as well as the lender, who would most likely choose to obtain a smaller, fixed fee over nothing.

A debt relief program is not a mortgage.  In a standard debt settlement plan, debt management companies work on your behalf to reduce your monthly debt fee or interest rates and cancel or minimize certain fines. The parties agree on an affordable payment schedule allowing you to pay off your debt over the course of 3 to 5 years. It is one of several ways in which you can take control of your debt and reduce the number of payments you make each month, saving you interest and fees.

How do debt settlement programs work?

It starts with a phone call. The companies that offer debt relief programs have a close look at your financial situation and then provide you an affordable payment schedule. Payments are made through your dedicated account. The companies ask both parties about the loan settlement.  Credit counselors question customers to collect information on revenue, spending habits, and debt. They also do a “simple” test on credit reports to search for reliability and up-to-date data. When the parties agree on a settlement, the lender is asked to transfer the amount to the respective account monthly. In this way, both concerned parties will get the benefit, and the debt will be paid timely, and none of the parties will get burdened.

Five main types of debt relief

There are five primary forms of debt relief. While the strategies and deadlines for each differ, it is best to allow 3-5 years to erase your debt and restore the settlement entirely.

1. Credit Counseling

Debt relief is sometimes as simple as building a budget to see from where the money comes and goes and cut back on excessive spending. Unfortunately, a budget only works for 40 percent of consumers. Non-profit organization therapists become budgeting professionals and can provide this program free of charge.

2. Debt Consolidation

With debt consolidation, a company collects and consolidates all your unsecured debts (i.e., credit card bills) into one monthly payment. If your credit score is good enough, your interest rate and monthly payments will decrease.

3. Debt Management

A financial advice firm partners with banks to reduce the interest rate on your loan (sometimes dramatically) and decrease your monthly payment to a manageable level. Credit scores are not a consideration with this debt relief strategy, but any benefits you have earned may be revoked if you miss your payments.

4. Debt Settlement

A debt settlement agreement is agreeing to resolve a loan with your creditors for less than what is due, which seems too good to be true and usually is. There is no obligation for borrowers to agree, and even if they do, it can cause you seven years of damage to your credit report.

5. Bankruptcy

This is a last-ditch option, when the other four are not going to work. But, if covering all your expenses with one of the other four options would take longer than five years, this could be a better solution. It is a second chance, and hopefully, you will have learned enough not to repeat the same mistakes.

Benefits of debt relief programs

Unless you adhere to the initial repayment schedule, it may take decades to pay back your debt. A legitimate debt relief program has many significant advantages. In fact, some of these benefits are available through reputable debt settlement firms, but not all.  However, these benefits are necessary for full, comprehensive, and adequate representation in the negotiation and settlement of debt with creditors. But it’s challenging to handle debt when it gets overwhelming.

Many people believe they have two options when it comes to debt payment that they cannot pay: defaulting on their loans and declaring bankruptcy.  Nonetheless, there is another way, which is debt settlement. The debt settlement plan has a proper law firm approval through which you are able to perform all the activities of debt settlement legally. Because of this factor, the debt relief program has many benefits

1. Tranquility

With any debt relief programs, you will have peace of mind. You shouldn’t have to think about being threatened, charging loans that you can’t pay, or even being prosecuted. In collaboration with a law firm, a debt settlement plan reaps all the benefits of the debt settlement and legal representation. You will be stress free knowing that your efforts are not going waste, your debt will be settled, your fines will be paid when the account is settled, and if you are sued you will be adequately represented, or if a creditor breaches that law you will have an attorney who can take action to protect your legal rights.

2. Timely payment

With a debt relief program, you are contributing a small amount every month to the escrow account from which the settlement payments are made. If a debtor is unwilling to negotiate a generous lump-sum payment, or you do not have funds to pay a lump sum, a compromise over 3, 6, 12, often 18 or 24 months can usually be agreed on.

3. Law protection

A law firm can protect you from creditor harassment.  In their attempt to collect your debt, a law firm will advise your creditors that they serve you. Hence you are not harassed. When they come to know that they can be sued due to their act of violation, they will not harass you for debt payment.

4. No payment until settlement

A debt relief program prohibits you from paying any kind of money before the debt settlement. This also ensures that when a loan is paid, any payments you make in debt settlement should be invested in your gain in an escrow or trust fund. Until that account contracts with the trustee, you should never be charged for any payment.

5. No bankruptcy

The main reason people choose to pay their loans through debt relief programs is to avoid bankruptcy. Bankruptcy is a debt solution for the rest of your life that will follow you. The default filing appears on your credit report for ten years, but if you have ever filed bankruptcy, most mortgages, credit cards, or job applications inquire. You could be found guilty of fraud unless you answer no, and the bank later finds out that you actually filed bankruptcy. You may lose your job in the case of employment. Debt settlement with your lenders will help you avoid a bankruptcy filing and deal with the consequences of default when it’s done right.

If you have trouble legitimately paying back what you owe, debt settlement may help. You are essentially debt-free in less time and at a lower cost than if you tried to pay off your debts on a typical payment schedule once you have negotiated and paid your debt.

Key points to remember before applying for a debt relief program

Debt relief programs are, without a doubt, very helpful, but beware of the scams. Here are some things to keep in mind before applying for a debt settlement plan.

Much of what debt management agencies do is essential to approach the lenders to discuss new repayment plans, preferably for lower interest rates or charges. Usually, you can do this yourself if you are struggling to make payments. Most creditors are eager to help you fulfill your debt obligations as they want to help you avoid bankruptcy that sucks for them. It’s not fun to speak directly to your lenders, and it may not be simple, but it can be achieved.


Debt settlement services provide borrowers with a realistic and workable path out of financial issues. These programs help buyers make payments they can manage, thus growing and eventually removing their debt. It should be remembered that for each person, not all debt relief programs work. A program’s effectiveness is based on the consumer’s finances, expectations, and dedication. No one plan will fix every financial issue, so do your research and make sure you’re happy with the debt relief program you’re choosing.

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