There are several different ways to achieve debt relief. If you have a decent credit history you could get a personal loan and use the funds to pay off all of your other debts. That way you would have consolidated your debts and would now have just one payment to make a month, which should be less than the sum of the payments you’re now making.
Another way to consolidate debts is by getting a home equity loan or home equity line of credit. Of course, you would need to have enough equity in your home that you would be able to borrow enough to pay off all your other debts. Again you should have a much lower payment than the sum of your current payments as well as a fixed term.
If most of your debt is credit card debt you might be able to transfer all of your balances to a new card with a lower interest rate or even better one of those 0% interest balance transfer cards.
If you owe more than, say, $7500 and can’t see any way to repay it within the next two or three years you might choose to hire a debt settlement company to handle your debts for you. For example, National Debt Relief has been able to successfully settle the debts of more than 100,000 families and individuals and has saved them millions of dollars in the process.
How we work with our customers
If you choose to work with National Debt Relief you’ll first talk with one of our debt counselors who will review your debts and explain how we handle debt settlement. To be a good candidate for debt settlement you must have had a financial hardship such as losing your job, having your salary reduced or being divorced so that it would be unrealistic to think you could repay all of your debts. An ideal candidate for debt settlement would owe more than $10,000 in unsecured debts with a balance of $1000 or more on each. Unsecured debts are those where you were not required to provide any collateral. This includes credit card debts, personal loans, lines of credit, past-due rent (if you no longer live in that house or apartment) and vet bills.
If you’re a good candidate
If it turns out that you would be a good candidate for debt settlement your National Debt Relief counselor will offer you a program designed to help you become debt free in 24 to 48 months. Assuming you accept the program you will no longer be required to pay your creditors. You will send National Debt Relief a payment each month instead of paying them. National Debt Relief will deposit this money into an escrow account that you control. When enough money has accumulated in the account we will begin contacting your lenders to discuss settling your debts. In most cases we are able to settle debts for about fifty cents on the dollar. Of course, we cannot guarantee this as every lender approaches debt settlement differently. In fact, there are a few that won’t discuss debt settlement at all.
When we are able to successfully settle one of your debts we will contact you and ask you to release the funds from your escrow account to pay for the settlement.
Why you can trust National Debt Relief
National Debt Relief has been in business since 2007. We are certified by the Better Business Bureau where we have an A rating. We belong to the American Fair Credit Council (AFCC), which is the watchdog of the debt settlement industry. To maintain our membership in this Council we are required to treat our customers fairly, honestly and transparently. As noted above we have helped more than 100,000 Americans find relief from their debts. And we are ranked number one for debt settlement companies on the site TopConsumerReviews.com.
How debt settlement will affect your credit score
, Whether you choose National Debt Relief or some other debt settlement company it’s important to understand that debt settlement will have a negative effect on your credit score. How much this will affect your score will depend on what your score was prior to having your debt settled but it is thought that it will lower it by around 80 points. Of course, if you owe $7500 or more and have been unable to pay your bills for the past several months your credit will already have been severely damaged so that the 80 points may not make that much of a difference. Regardless of this, debt settlement is better than a bankruptcy, which could lower your score by as many as 250 points and leave a stain in your credit reports that will last 10 years.
Get started today
If you believe you would be a good candidate for debt settlement, don’t wait. Call us today to get started. The very worst thing you can do is to do nothing, as your problem with debt is only going to get worse.