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What To Do When You Find Yourself Deeply in Debt

Tuesday, January 26th

What to Do When You Find Yourself Deeply in Debt

If debt is mounting and you continually find yourself struggling every month, it may be time to seek debt relief. An important part of selecting the best way to eliminate your debt is to realize when it's time to ask for help. Debt consolidation and debt settlement programs are both very popular ways to help consumers get out of debt in a short period of time, but are they right for you? Neither of these programs are available for people who are simply tired of paying their bills, but they are available to those who are already late with payments, have bills in collections or have had a sudden change in their income.

There are a number of non-profit organizations currently offering debt management services, which include both debt consolidation and debt settlement. Some companies may offer both, while others may specialize in one or the other. In order to be eligible for either of these programs, you must be able to show that there is not sufficient income to pay your bills as they currently require. If this sounds like your situation, debt relief may be just a phone call away.

If you are receiving calls from your creditor's collections department, speak with them openly and honestly regarding your situation. Once you have signed up with a debt management company specializing in either debt consolidation or debt settlement, inform your creditor(s) of the name and telephone number of the company. In most cases, this will stop the collection calls while the creditor verifies the information that you provided. By explaining the fact that you are working with a company who will be submitting a proposal on your behalf, most creditors will accept this information as your good faith desire to repay your debts. As the telephone begins to stop ringing, you will gain some much needed relief from the stress associated with being constantly reminded of your financial woes.

When a debt management company sends your proposed new monthly payments, interest rates and/or debt settlement offers, the creditor(s) will either accept or deny the offer. Within weeks, you will be informed of their decision and will have the ability to call the debt management agency to remain updated with creditor's responses. After 1-3 months of consecutive payments made through a debt relief agency, most creditors will begin to list your account as current with credit reporting agencies.

It is recommended that consumers check their credit report periodically in order to maintain the accuracy of the content and to prevent them from being a victim of identity theft. Each year, you are entitled to receive a free copy of your credit report from each of the three credit reporting agencies, including Equifax, TransUnion and Experian. If you enroll in a debt consolidation or debt settlement program, it's a good idea to check your credit report prior to enrollment and then again after six months. When you compare the two timeframes, you will likely see a great improvement as creditors begin to receive their payments and update your credit reports accordingly. If any of the information is inaccurate, you can file a dispute with the credit reporting agency and get the corrected version updated in a short amount of time.

Dealing with debt is not an easy task. In fact, it can be a very exhausting experience. Once you have faced your finances and made an important step toward eliminating your debt, your life will begin to improve right along with your credit score.

The Best Debt Relief Companies Compare Debt Relief Companies Compare Debt Relief Company Reviews What are the best Debt Relief Companies Best Debt Relief Company Reviews

Debt Relief Company FAQ

Debt relief is a process that helps people get out from under their ever-mounting financial obligations. This can be accomplished through Debt Negotiation, Debt Settlement, Debt Consolidation or Repayment Plans, among other strategies.
You'll need to have a certain amount of debt to be eligible for debt relief, which varies according to which relief service you choose. Some require a minimum unsecured debt of $7500, while others specify that you need to owe at least $10,000. Also, some debt relief providers aren't licensed in all 50 states - so you may be eligible for debt relief but the service you're considering isn't available in your state.
Believe it or not, many debt relief services are free! Most providers give you a no-cost consultation, analyzing your financial situation and making recommendations tailored to your needs. But, there are some fee-based services, especially if you want someone to negotiate with creditors on your behalf.
Many of the strategies used by debt relief providers can be done on your own, yes. But, in the amount of time it would take you to get up to speed and learn what those strategies are, you could be paying hundreds (or thousands!) of dollars in interest. It's almost always a smarter financial move to have the experts do the work for you.
The first step is usually the complimentary consultation, where a representative will go over your debt situation and find out your goals, needs and timeframe. From there, it will depend on which approach you decide to take - but, for the most part, the debt relief service will be in charge of contacting your creditors and working out the details for reducing what you owe.
No two consumers are alike - and debt relief strategies vary as well. Some services offer relief through a personal loan, allowing you to pay off high-interest debt with a lower-interest arrangement, so naturally your situation will change as soon as your loan is funded and used to reduce your monthly payments. On the other hand, if your service is negotiating with your creditors to reduce or eliminate what you owe, that can take several weeks to months.
Most of the time, there isn't. A few debt relief services offer a 100% customer satisfaction guarantee, allowing you to cancel your plan without fees or penalties. Read the fine print of any contract before you sign up, so you'll know exactly what's promised - and what isn't.
Debt relief may sound too good to be true, but it's a legal, well-known method for reducing the debt burden faced by many consumers. Although some fly-by-night services pop up from time to time, most companies offering debt relief have been in business for a decade or longer. You can always check for a company's listing with the Better Business Bureau for further confirmation that it's a trustworthy option for debt relief.

Compare Debt Relief Companies

Select any 2 Debt Relief Companies to compare them head to head

best-debt-relief-companies
  • National Debt Relief
  • Credit.org
  • Curadebt
  • SoFi
  • Upstart
  • LendingTree
  • CareOne Debt Relief Services
  • LendingClub
  • American Debt Enders
  • Accredited Debt Relief
  • OneMain Financial
  • Savvy Money
  • Debt Consolidation Care
  • Fast Track Debt Relief
National Debt Relief vs Credit.org National Debt Relief vs Curadebt National Debt Relief vs SoFi National Debt Relief vs Upstart National Debt Relief vs LendingTree National Debt Relief vs CareOne Debt Relief Services National Debt Relief vs LendingClub National Debt Relief vs American Debt Enders National Debt Relief vs Accredited Debt Relief National Debt Relief vs OneMain Financial National Debt Relief vs Savvy Money National Debt Relief vs Debt Consolidation Care National Debt Relief vs Fast Track Debt Relief Credit.org vs Curadebt Credit.org vs SoFi Credit.org vs Upstart Credit.org vs LendingTree Credit.org vs CareOne Debt Relief Services Credit.org vs LendingClub Credit.org vs American Debt Enders Credit.org vs Accredited Debt Relief Credit.org vs OneMain Financial Credit.org vs Savvy Money Credit.org vs Debt Consolidation Care Credit.org vs Fast Track Debt Relief Curadebt vs SoFi Curadebt vs Upstart Curadebt vs LendingTree Curadebt vs CareOne Debt Relief Services Curadebt vs LendingClub Curadebt vs American Debt Enders Curadebt vs Accredited Debt Relief Curadebt vs OneMain Financial Curadebt vs Savvy Money Curadebt vs Debt Consolidation Care Curadebt vs Fast Track Debt Relief SoFi vs Upstart SoFi vs LendingTree SoFi vs CareOne Debt Relief Services SoFi vs LendingClub SoFi vs American Debt Enders SoFi vs Accredited Debt Relief SoFi vs OneMain Financial SoFi vs Savvy Money SoFi vs Debt Consolidation Care SoFi vs Fast Track Debt Relief Upstart vs LendingTree Upstart vs CareOne Debt Relief Services Upstart vs LendingClub Upstart vs American Debt Enders Upstart vs Accredited Debt Relief Upstart vs OneMain Financial Upstart vs Savvy Money Upstart vs Debt Consolidation Care Upstart vs Fast Track Debt Relief LendingTree vs CareOne Debt Relief Services LendingTree vs LendingClub LendingTree vs American Debt Enders LendingTree vs Accredited Debt Relief LendingTree vs OneMain Financial LendingTree vs Savvy Money LendingTree vs Debt Consolidation Care LendingTree vs Fast Track Debt Relief CareOne Debt Relief Services vs LendingClub CareOne Debt Relief Services vs American Debt Enders CareOne Debt Relief Services vs Accredited Debt Relief CareOne Debt Relief Services vs OneMain Financial CareOne Debt Relief Services vs Savvy Money CareOne Debt Relief Services vs Debt Consolidation Care CareOne Debt Relief Services vs Fast Track Debt Relief LendingClub vs American Debt Enders LendingClub vs Accredited Debt Relief LendingClub vs OneMain Financial LendingClub vs Savvy Money LendingClub vs Debt Consolidation Care LendingClub vs Fast Track Debt Relief American Debt Enders vs Accredited Debt Relief American Debt Enders vs OneMain Financial American Debt Enders vs Savvy Money American Debt Enders vs Debt Consolidation Care American Debt Enders vs Fast Track Debt Relief Accredited Debt Relief vs OneMain Financial Accredited Debt Relief vs Savvy Money Accredited Debt Relief vs Debt Consolidation Care Accredited Debt Relief vs Fast Track Debt Relief OneMain Financial vs Savvy Money OneMain Financial vs Debt Consolidation Care OneMain Financial vs Fast Track Debt Relief Savvy Money vs Debt Consolidation Care Savvy Money vs Fast Track Debt Relief Debt Consolidation Care vs Fast Track Debt Relief
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