Since the economic slide of the country a few years back, a lot of Americans have been calling out for help for their debt problems. The millions of people being laid off from work were forced to use their credit cards to purchase basic necessities and that left them so deep in credit card debt. As they are unable to pay off their financial obligations, creditors and collection agencies start coming down on them hard and things get really abusive and nasty all at the same time.
This particular scenario is not only evident in credit card debt but also in medical bills, student loans and mortgage payments. This is why debt relief programs have suddenly become quite popular.
Debt Relief Program through Debt Settlement
A debt relief program is self explanatory. It is any plan that aims to help you achieve financial freedom from your debts. There are various programs available and numerous businesses and organizations that provide them.
The most popular and ideal program for debtors is the debt settlement plan. It goes by several names like debt negotiation, debt mediation and debt arbitration. This involves a debt negotiator or a debt relief consultant who will view your finances. They will help you come up with a figure that you can afford to pay every month without sacrificing the funds needed for your basic necessities. The analysis is done so they can negotiate with your creditor on your behalf for a lower outstanding balance.
The way it works is once you enroll in this program, they will ask you to stop sending payments to your creditor. In lieu of that, you will be sending the money to an insured financial institution that they will help set up for you. This account should be strictly under your name and your full control. Otherwise, do not agree to send any money there. When the creditor or the collection agency starts to harass you, the debt relief consultant will step in to offer a debt settlement. Their objectives will include the following:
- lower outstanding balance
- lower and affordable monthly payments
- lower interest rates
- complete waiving of late penalty charges and other fees
They will aim to make the creditor agree to waive off a portion of your debt when you have finished off paying a pre-agreed percentage of the outstanding balance.
Other forms of debt relief programs include debt consolidation (where you combine all your debts under one loan), debt management (same as debt settlement but you also get credit counseling), credit card debt transfer (transferring of high interest debts to a lower one), and credit counseling (you get a financial expert to give you advice on how to pay off your debts and improve your budget plan).
Laws like the FACTA, FDCPA and TSR should be read by every debtor to ensure that they are protected from abusive and opportunistic companies. You can browse through our Debt Relief Law page to know more about these laws.
If you want to know more about debt relief programs, feel free to give us a call at 800-300-9550. NationalDebtRelief.com is a debt relief company that aims to assist debtors in paying off their financial obligations. You can chat with us or call us through the toll free number displayed on this page. You may also fill out the short form found on the right side of this page and we will have someone get in touch with you as soon as possible.