Debt Relief Reviews - Five Star Reviews or BBB A+ Ratings?
If you find yourself overwhelmed with credit cards and other unsecured debts, you may be searching for debt relief programs or plans that come highly recommended by other individuals in situations similar to yours. First of all, it is very important to understand that no two debt situations are exactly the same, so it's necessary to select the debt relief or debt resolution program that best fits your needs. Whether you select a four-star or five-star company, the smartest move of all may be to select a company that has earned a BBB A+ rating with the Better Business Bureau; that rating is generally the strongest indication of a company's true commitment to customer satisfaction. It's also proof positive that the company has successfully satisfied its customers expectations.
Arkansas residents, like many people across the country, often find themselves buried under the cost of high interest credit cards and other unsecured debts, such as store cards, gas cards, medical bills and even utility bills and more. If this dilemma sounds familiar, you may be looking for information about debt management programs, or debt management plans (DMPs) coordinated by credit counselors or debt counselors. You may also be thinking about alternative debt relief options such as debt settlement, debt negotiation, or even bankruptcy. Whatever your current debt situation, take the time to clearly understand the differences between these debt relief options and how they can ease your financial burden during a hardship.
Credit Counselors Personalize Debt Management Plans
A debt management or credit-counseling program is intended to take your individual credit cards and other unsecured debts and combine or "consolidate" them all into one, more manageable monthly payment. A debt management plan is created with the help of a credit or debt counselor and designed to help consumers save a considerable amount of money and become debt-free at a rapid rate by requesting and being allowed the benefits of debt relief, such as lower interest rates and the waiving of late fees and penalties.
If you are experiencing a financial hardship and need to explore your debt relief options, you can get your free debt relief evaluation and savings estimate at no obligation.
How are debt management plans (DMPs) custom-made for your situation? Credit or debt counselors will generally speak personally with you to get information regarding the financial hardship you are experiencing and verify how much debt you are facing. They will then gain a clear understanding of your income level, as well as how much money you can realistically designate each month to pay down or payoff your debts. Finally, they will put together a personalized debt management plan that requires you to temporarily stop using credit cards and make one consolidated payment each month to the credit-counseling agency. That money will then be distributed to creditors, one by one. Consumers must understand that, before a plan can be established, it has to be submitted to creditors asking that they agree to extend the benefits of debt relief to the individual in need. These benefits can include:
- Lowering Monthly Payments
- Reducing Interest Rates
- Waiving of Late Fees and Penalties
- Consolidating or combining debts into a single, more manageable, monthly payment
- Helping you save substantial money and allowing you to get out of debt in less time than you could on your own if you were to continue paying only the monthly minimum month after month at higher interest rates.
Creditors may be more open to agree to the proposals submitted by credit or debt counselors once they realize that you are truly experiencing financial difficulties. Upon their acceptance of proposals, they are then added to the debt management plan. You still must adhere to the original terms of your cardholder agreements for any creditors who do not agree to extend the benefits of debt relief.
If you need relief from credit cards or other unsecured debts, you can get your free debt relief evaluation and savings estimate at no obligation.
Consumer credit counseling agencies, through certified credit counselors or debt counselors, also provide additional debt relief services, including financial education, help with budgeting, how to develop good spending habits and more. Truly outstanding debt relief or credit counseling agencies will always include a strong educational component to their program. Yes, they will they help you get out of debt, but they will also help you come to grips with the root cause of your debt crisis and give you the tools needed to live a debt-free life - permanently.
Debt Management: A Proven Path to Save Money
Debt management or credit counseling is a reliable debt relief strategy that has eased the financial strain for many individuals and families, but it's important to know that debt management requires a certain amount of discipline and restraint to avoid using credit cards. It also requires you to make monthly, on-time consolidated payments, and an overall dedication to "stay the course" and finish a program that usually takes three to five years before debts are completely resolved and the debt-free day arrives!
That may seem like a long time, but once you stop using your credit cards, you'll see your balances come down as you make monthly payments and you will be free of debt before you know it. Ask anyone who has stayed with a debt relief plan and experienced the life-changing benefits first hand. The reality is this: Your debts won't miraculously vanish due to debt relief, but it has provided a helping hand for countless individuals and families who want to break the debt cycle and get on the road to financial freedom.
State Financial Assistance
Debt relief programs have been known to help many consumers - including the elderly and those requiring medical assistance - during financially challenging times, but some consumers may need more immediate or possibly short-term relief, such as help paying for rent, utilities, child care or even buying groceries. The state of Arkansas has a variety of financial assistance programs available, such as the Low Income Home Energy Assistance Program (LIHEAP), Medicaid, ARKids First! Program, which provides affordable health insurance for children, and a variety of food assistance programs. To learn more, visit the state of Arkansas' official Benefits page.
Understanding Debt Relief Alternatives to Consolidation
One alternative to debt management through credit counseling is debt settlement. Debt settlement, or debt negotiation, is typically utilized by individuals and families who are in over their head and truly struggling with high interest, high-balance credit card debt. These individuals may even be considering bankruptcy. It is a more aggressive form of debt relief that has helped consumers get out of credit card debt at an accelerated pace, assuming funds can be "set aside" to build up a "lump sum" amount that can later be used to extend a settlement offer to creditors. There are important differences between debt settlement and debt management: With debt management you are actually paying off everything you owe, but saving money by way of much lower interest rates and a waiving of late fees and penalties. The primary goal of debt settlement is to "settle," or negotiate, with credit card companies for an amount that is far less than is currently owed.
Why would credit card companies want to "settle" with consumers? If credit card companies decide eventually to "sell off" accounts that are 60 to 90 days late, or more, to a third-party collector, creditors may realize as little as 10 cents on the dollar. So, it stands to reason that credit card companies may be agreeable to accept a reasonable settlement offer made by you or by a debt settlement company negotiating on your behalf. It is important to be aware that when consumers default on their credit card agreements in order to set aside money in a settlement fund, creditors may threaten or take legal action. In addition, money saved through credit card settlements are subject to federal taxes. Lastly, while debt settlement will probably have an adverse effect on personal credit, it won't be as serious or long lasting as that of personal bankruptcy.
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Find out what debt relief could do for you and get an estimate of how much you could potentially save - take a moment to answer a few questions online. Get your free debt relief evaluation and savings estimate today.