How did you get so deeply in debt? It actually doesn’t matter. It might’ve been because you lost your job or are now underemployed. Maybe you had a serious auto accident and ended up with a raft of hospital bills. The point is that you have a serious problem with debt and are praying for a way out.
It’s not very complicated
What debt relief means isn’t really very complicated. The dictionary definition of the word relief says it pretty well – ” removal or lightening of something oppressive, painful, or distressing.” If you’re seriously in debt we don’t have to tell you how oppressive, distressing or painful it can be and how much you would love to have that load of debt removed or lightened.
How to get debt relief
When I was a youngster, there was a program where one of the characters could make something magical happen by “plunking his magic twanger.” While it would be nice if you could plunk a magic twanger and get instant relief from your debt, there’s just no way to make that happen. If you are $15,000 or more in debt, it’s going to take you some amount of time to pay it back.
A debt management plan
One way to achieve debt relief is through a debt management plan. You might be able to develop one of these yourself but most people choose to get help from either a debt management company or a consumer credit counseling agency. Whichever you choose, it will probably take you as many as five years to become debt free. You’ll have to cut up your credit cards and make sure you don’t incur any new debt during that five-year period or you might end up with more debt than when you started.
Debt relief through a debt consolidation loan
A second way to achieve debt relief is by getting a debt consolidation loan. If you owe, say, $15,000 or more, this will probably have to be a secured loan. In other words, you will be required to use an asset as collateral. This will probably be your home. While a debt consolidation loan should get you a better monthly payment than the sum total of the monthly payments you are currently making, it can take anywhere from 7 to 10 years to pay off the loan. Again, you will have to make sure you do not incur any new debts during those years. You will also have to be very careful and not default on the loan because if you used your house as collateral, your lender could repossess it and you would be basically homeless.
Debt management companies
You can find companies online that offer debt management plans. This represents yet another way to get debt relief. Most of these companies are unlike consumer credit counseling firms in that they charge for their services. These charges can vary anywhere from $5 to $50 a month versus credit counseling agencies that usually provide their services free or for a very small fee. You also have to be careful and do your homework. Some of the online-based debt management companies are nothing but scam artists and will take your money but never pay your creditors. It will also probably take at least five years to complete one of these plans.
Faster debt relief
There is a faster way to get debt relief and this is through a program of debt settlement. This is where our counselors work with your creditors to have your interest rates and balances reduced. In most cases, they can get your balances reduced to just a fraction of what you actually owe. Since you will owe less, you can get out of debt faster. In fact, most of our clients become debt-free in 24 to 48 months.
If you want to get the best and fastest path to debt relief, call our toll-free number or fill out the form on the right side of this page for a free quote. It could be the smartest thing you do this year.