What To Do When You Find Yourself Deeply in Debt in 2019

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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.

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Debt Relief In The News

Elizabeth Warren unveils student debt relief plan, Seth Moulton weighs in

U.S. Sen. Elizabeth Warren has unveiled a "cancellation plan" to eliminate student loan debt for tens of millions of Americans and allow students to attend public colleges for free. "The time for half ...

Published:  Mon, 22 Apr 2019 10:22:00 GMT

Impeachment, Student Debt Relief and Jail Time for CEOs: Elizabeth Warren's Policies Help Her Stand Out Among 2020 Field

Massachusetts Senator and 2020 presidential candidate Elizabeth Warren took progressive but controversial stances on three major issues in past weeks, successfully setting herself apart from the ...

Published:  Mon, 22 Apr 2019 13:18:00 GMT

Warren calls for massive student debt relief and free public college tuition

Senator Elizabeth Warren unveiled a sweeping plan Monday to forgive massive amounts of student loan debt for middle-class Americans as she tries to appeal to the young voters expected to play a major ...

Published:  Mon, 22 Apr 2019 05:01:00 GMT

Elizabeth Warren: My Student Loan Debt Relief Plan "Goes Further" Than Bernie Sanders'

In an interview with CNN's MJ Lee, Sen. Elizabeth Warren discusses her plan to offer student loan debt relief and lower the cost of college. MJ LEE, CNN: Senator Elizabeth Warren out with a sweeping ...

Published:  Mon, 22 Apr 2019 09:30:00 GMT

Warren's student loan debt cancellation plan aims to help the most vulnerable

Sen. Elizabeth Warren (D-MA) announced on Monday a new plan to provide complete student loan debt relief to some 42 million Americans. Her proposal is also specifically geared toward supporting ...

Published:  Mon, 22 Apr 2019 09:30:00 GMT

Elizabeth Warren releases sweeping student debt cancellation and free college plan

According to analysis provided by her campaign, that would provide immediate relief to more than 95% of the 45 million Americans with student debt. The Massachusetts Democrat and 2020 contender is ...

Published:  Mon, 22 Apr 2019 09:30:00 GMT

Sen. Elizabeth Warren's free college plan aims to eliminate most student debt

Anybody who makes more than a quarter-million would not receive debt relief. "My plan would provide at least some debt cancellation for 95% of people with student loan debt (and complete and total ...

Published:  Mon, 22 Apr 2019 11:28:00 GMT

Elizabeth Warren Wants Her Proposed Tax on the Ultra-Rich to Alleviate Student Loan Debt

C ompared to other candidates vying for the Democratic presidential nomination, Warren is far more progressive in terms of loan-debt relief for higher education. "We got into this crisis because state ...

Published:  Mon, 22 Apr 2019 15:50:00 GMT

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