The types of debt relief assistance
You can be in a very vulnerable position if your debts are causing you to stress out. Don’t make the mistake of leaping at the first debt assistance program you come across – especially if it promises to work miracles. There are a number of different ways to get debt relief assistance that are honest and ethical but none of them will get you out of debt overnight and with no sacrifice on your part.
Get a bank loan
For example, you could get a debt consolidation loan from your bank or credit union. If you own your own home you might be able to get a second mortgage or to do a refi. Mortgage interest rates are almost at an all-time low now so you should be able to swap high-interest debts, especially credit card debts, for a home loan at 8% or less. You could then use the money to pay off your debts and achieve debt relief. Of course, if you don’t own your own home things will be more difficult. In fact, you may have a problem getting a bank loan large enough to pay off your debts as banks are often reluctant to loan money to people that are already having a problem with debt.
Generate more income
Many people have found that a good way to get debt relief is by earning more money and using it to pay off their debts. These people get second jobs or part-time jobs to generate extra income. People with normal 9 AM to 5 PM jobs could take a second job evenings or weekends. I ran into my personal banker several weeks ago tending bar at a local restaurant. In his case, it was to help his wife finish college but the extra money he earned could just as well have been used to retire the couple’s debts.
Do a balance transfer
Do you have high-interest credit card debt at 18% or above? You might be able to transfer the balances on those cards to a new one at a much lower interest rate and thus achieve some debt relief. If you can qualify for it, you could get one of those zero interest percent balance transfer credit cards that give you a “time out” of 6 to 18 months during which time you wouldn’t have to pay any interest at all. This means all of your payments would go to reduce your balance and, who knows, maybe you could be completely debt free at the end of those six or 18 months.
Get your debts restructured
A fourth way for debt relief assistance is to contact all of your creditors and see if you can’t restructure your debt. If you are a good “salesperson”, you might be able to get your creditors to reduce your interest rates or even allow you to make no payments for several months. You will need to convince your creditors that you are in dire financial straits for this to work but it is possible.
There is one drawback to the debt relief assistance programs described above. None of them can reduce your debt. They are simply ways to either move your debts from one set of creditors to another or pay down your debt faster. In comparison, we could probably settle your debts for somewhere around 50% of what you owe and provide you with an affordable payment plan that could get you out of debt in 24 to 48 months – depending, of course, on how heavily you are in debt. Start a chat with us or call us today to get more information on debt settlement and why it could be your best alternative for debt relief assistance.