In tough economic times, many residents in Arizona and across the country are seeking relief and ways to manage their credit card debts as well as other types of unsecured debts - such as medical bills, retail store charges, or even utilities. If you are also struggling with multiple credit card and unsecured debts, you may be interested in exploring your available debt relief options that can help you with manage and pay off your debts and give you - and your family - a new lease on life.
A popular option among many consumers these days is debt consolidation - also known as a debt management plan (DMP) - through a credit counseling agency. With debt consolidation, the goal is to provide consumers struggling with multiple, high interest debts with one, more structured, and more manageable payment plan made to a credit counseling agency. While it is a smart move for many consumers seeking debt relief, debt consolidation is certainly not the only option available. Depending on your debt situation, debt settlement may be a viable option; it allows consumers with high credit cards the opportunity to settle, or negotiate, with their individual creditors to pay significantly less than what they originally owe. These days, both debt consolidation and debt settlement have become popular alternatives to bankruptcy - also another form of debt relief, but an option that has a more damaging and longer lasting impact on your personal credit.
Find out how debt relief can help you and see if you qualify to save. Answer a few, simple questions and get a free debt relief analysis and savings estimate. Start here.
Benefits of a Debt Management Plan
Debt consolidation, or a debt management plan (DMP), involves combining, or "consolidating," your high-interest credit card and unsecured debts into a single, more structured, and more affordable monthly payment made to a credit counseling agency. Credit counselors review your financial situation, taking into account your income, debts, and other obligations. Afterwards, they will typically develop a strategy to help reduce your debts and pay them off at a more manageable pace. They do so by speaking to creditors on your behalf asking for reduced or lower interest rates, as well as the waiving of late fees and other penalties. Creditors that agree to those proposals are entered into the debt management plan.
Consolidating debts through credit counseling is a wise move for many consumers who are ready to pay down their debts and find a proven way that can help them manage their debts. With a free debt relief analysis and savings estimate, you can find out how much you could possibly save every month. Start here by requesting a free debt relief analysis and savings estimate.
Why Settle Your Debts?
For many consumers who are falling months behind on their credit card payments, debt settlement can certainly be a viable debt relief option. When you enroll in a debt settlement program, you are hoping to settle or negotiate with your creditors for significantly less than what you originally owe. That is the main difference between settling your debts versus consolidating your debts through credit counseling - where you are paying the entire amount of your debts, just at lower interest rates.
When considering debt settlement, it's important to know the potential drawbacks: As the term "debt settlement" implies, your creditors are certainly not legally required to "settle" or accept your settlement proposal. In many cases, you will be advised to stop making payments on your credit cards to save up funds, over a period of time, for use when making a settlement offer. While in the process of saving up funds and not making payments, however, many consumers may face the threat of a lawsuit from creditors for defaulting on the terms of their credit card agreements. In addition, many consumers who default on the terms of their credit card agreements typically see a decline in their credit scores.
But in spite of the risk involving one's credit, debt settlement remains a popular alternative to bankruptcy. Remember, when you settle debts, the impact to your personal credit is not nearly as damaging or long lasting as a personal bankruptcy and this can be important to consumers who had good or excellent credit scores before they decided to settle their debts.
Compare Your Debt Relief Options Today
When it comes to finding debt relief, each individual's financial situation is unique. That's why it makes sense to find out what your debt relief options are, whether it's in the form of a debt consolidation or debt settlement. As noted earlier, the goal of a debt consolidation program is to provide you with a single, more affordable, and more manageable payment plan made to a credit counseling agency. With a more structured plan in place, you can hopefully pay your debts at an accelerated rate - sooner than if you only continued to make the minimum monthly payments at higher interest rates.
The bottom line is, if you are struggling with debts from credit cards and other unsecured debts, it is a smart move to find out your available debt relief options and how much you can potentially save. Answer a few, simple questions now to get a free debt relief analysis and savings estimate - it only takes minutes!