Is it really possible to pay off certain types of debt for less than you actually owe? While some people might try to tell you the idea is too good to be true, reality says otherwise. Hundreds of thousands of people have used debt relief to pay a lump sum to each creditor that is less than the amount they owed, and you can too.
This process is called debt relief. When you partner with the right company, it’s an effective way to pay off your debt and get back to living the life you want.
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How Debt Relief Works
Debt settlement—also known as debt relief—refers to having an expert negotiate with creditors on your behalf. The goal is to convince them to accept less than you owe in exchange for settling the debt to a $0 balance.
A reputable debt relief company, like National Debt Relief, begins by having you speak with a debt coach to assess your situation. They will review your finances to determine if your debt qualifies for settlement and help you decide whether it is your best option.
If you choose to go this route, the debt coach will work with you to set up affordable monthly payments for you to pay off your debt. These funds aren’t released without your approval. If your financial situation changes, your monthly payments could be raised or reduced as needed. You could see your accounts resolved in as little as 24-48 months.
Debt relief involves:
• Working out a payment plan you can afford
• Contacting your creditors to negotiate settlement agreements
• Creating an account into which you make deposits to fund settlement agreements
• Paying off creditors after you approve the agreements they reach on your behalf
What types of debt qualify for debt relief?
Only unsecured debt qualifies for debt relief, which includes:
- Credit Cards
- Personal Loans
- Lines of Credit
- Medical Bills
- Business Debts
- Certain Student Debts
But what is the difference between secured and unsecured debt?
A secured loan is a loan in which the borrower pledges a high-valued asset as collateral. Car loans, home mortgages, boat, RV, and motorcycle loans are examples of secured debt. This guarantees that the lender will still receive their money. If you default on the loan, they sell the item to recoup the funds.
Unsecured loans are issued solely based on good faith. Lenders rely on credit histories and credit score information to determine whether the borrower is a good candidate to repay the loan.
How to Find a Legitimate Debt Relief Company
Admittedly, there are debt relief providers who don’t have your best interest at heart. That’s why it’s vital to do your homework before signing up with any company. If someone tells you that you could pay off your debt in 9 months, ask them how. If they request upfront fees, ask them why when it’s illegal to do so. The more you ask, the better.
A legitimate debt relief company like National Debt Relief will always review your situation before making any recommendations. They never take an upfront fee because it is illegal and is the right thing to do. You can check out their 75,000 5-star reviews from satisfied clients on Trustpilot.
National Debt Relief also boasts an A+ rating with the Better Business Bureau, certification from the International Association of Professional Debt Arbitrators, and is rated #1 by Consumer Affairs, Forbes Advisor, and more.
Legitimate operators are truthful about all aspects of the debt relief process, both its pros, and cons. They will advise you of the temporary consequences to your credit score, outline all of the costs and clearly define how long it will take to become debt free. Complete transparency is one of the hallmarks of the best debt relief companies, including National Debt Relief.
The Right Solution For You
Understanding how debt relief works is the first step toward getting your debts resolved and enjoying a fresh start. National Debt Relief is the leader in its field and has already helped over 500,000 people get a new lease on life. But don’t just take our word for it. Compare debt relief companies, scrutinize their ratings, and see if there are any complaints on the BBB website. Good luck on your debt relief journey.