Credit Card Debt
Due to many financial circumstances that are often beyond their control, many individuals and families in Arizona who are in debt have been forced to rely on credit cards just to get by. For many of these residents, using plastic to buy even the essentials is the only way that they can make it day-to-day, resulting in high credit card debt. If you are also overwhelmed with debts from credit cards and unsecured debts (such as medical bills or utilities), you may be interested in exploring your debt relief options, such as debt consolidation and debt settlement.
With debt consolidation, you combine your multiple credit card and unsecured debts into a single, simpler, and more structured payment plan made to a credit counseling agency. Another option is debt settlement, where you hope to "settle" or negotiate with credit card companies for substantially less than your original debt amount. Both options are popular alternatives to declaring bankruptcy, which is also a form of debt relief that can certainly give you a new lease on life, but its impact to your credit can be very devastating and long lasting.
If you want to compare your debt relief options, answer a few, simple questions and get a free debt relief estimate along with a savings quote.
"How Does Debt Settlement Work?"
If you have the type of debt that qualifies for debt settlement, you can try to negotiate with creditors for a significantly reduced amount of what you originally owe. For many consumers, debt settlement or negotiation may offer an honest and legal way to pay back their debts without declaring bankruptcy.
Keep in mind, however, the potential risks involved: When you enroll in a debt settlement program, your credit score will typically decline because it usually involves "falling behind" on your payments in order to set aside funds that can be used to make a settlement offer (or what's also called a lump sum payment). In addition, as you fall behind in making payments, you can also face legal action for, essentially, defaulting on the terms of your credit card agreements.
Yet, in spite of all these risks, debt settlement has become a popular alternative for many consumers who want to avoid declaring personal bankruptcy. In addition, debt settlement can lead to a significant amount of savings for many consumers, with the amount of savings dependent on the total amount of debt, the companies involved, and their policies to extend relief.
"Is Consolidation for Me?"
Many consumers may find debt consolidation through credit counseling preferable if they like the idea of having a single, more manageable, and more affordable payment--versus having multiple, high-interest credit card debts to deal with on a monthly basis. Facilitated by credit counselors, debt consolidation or debt management typically begins with a review of your outstanding financial obligations as well as the amount of money that you can comfortably allocate to pay off your debts.
Following a review of your finances, credit counselors typically send proposals to your individual creditors requesting more affordable payment terms--such as reduced interest rates or a waiver of late fees and other penalties. Those creditors who accept the proposals are then placed into the debt management plan. The goal of credit counseling is, with a more structured and more lenient payment plan, you can pay off your debts at an accelerated pace as well as direct more of your payment towards the principal balance of your debts rather than just the interest.
"Time to Get a New Lease on Life"
When you're struggling with credit card debt, it can be very frustrating to find the right debt relief program when there are so many choices available. That's why it's so important to fully explore all your debt relief options and know how much you can potentially save with, for instance, debt settlement or debt consolidation.
The bottom line, if you are overburdened with credit card and unsecured debts, there is help available. Debts do not magically disappear, but finding a reputable and experienced debt relief company is a good step towards paying off your debts and getting a new lease on life. Find out how debt relief can help you by requesting a free debt relief analysis and savings estimate. Start today.