Debt Relief is an option for consumers who are struggling to pay off debts. It is not a quick fix, but it can help people become debt-free.
There are several options for debt relief, including debt management programs, credit consolidation, debt settlement and bankruptcy. It is important to determine which one will work best for you.
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Freedom Debt Relief
If you are experiencing a legitimate financial hardship and are having trouble paying your debts, then you may be a good candidate for Freedom Debt Relief drp. This company offers a debt settlement service that can help you negotiate with your creditors to reduce your debts and possibly eliminate them altogether.
To qualify, you need to have at least $7,500 in unsecured debts that are affecting your ability to make payments. You also need to be in a “legitimate financial hardship” that includes medical bills, credit card debt or student loans.
Once you enroll in the Freedom Debt Relief program, you’ll begin to set aside money each month to pay towards your debts as they are settled. These payments will typically be less than the total amount of the debts you owe.
While the program is likely to have a negative impact on your credit score, it could help you get out of debt and start fresh again. A recent study of Freedom Debt Relief graduates found that their overall debt burden decreased and their FICO scores improved more than two years after enrollment.
New Era Debt Solutions
Debt Relief involves a range of solutions that can help you pay back your debts more efficiently. These may include a consolidation loan, balance transfer or a debt management plan.
New Era Debt Solutions is a debt settlement company that helps people with unsecured debts like credit cards, student loans, and personal loans. It cannot settle secured debts such as home or auto loans, but it can help you settle them for less than you owe.
They also offer a free debt analysis consultation to help you understand your situation and decide whether or not their services are right for you.
NEDS is a good choice for anyone in need of debt relief because they do not charge upfront fees and they are transparent about their fee structure.
They also offer a free debt calculator and blog to help you learn more about debt settlement and how it works. They do not disclose their fee schedule online, though, so it’s best to check this out with a representative during the free consultation.
National Debt Relief
National Debt Relief offers debt settlement services for unsecured credit card, personal loan and line of credit debts as well as medical bills. It also assists with some business and private student loans on a case-by-case basis.
Generally, clients can expect savings of about 30% off their total balances with debt settlement. These savings are achieved by negotiating with creditors on behalf of your account and reducing the amount you owe.
However, debt settlement programs can negatively impact your credit rating if you miss payments. Your payment history accounts for 35% of your FICO credit score, so you may notice a drop in your credit scores once you enroll in a debt settlement program.
Clients who are enrolled in a National Debt Relief debt settlement program must deposit an agreed-upon monthly amount into an escrow account that only they can access. When National Debt Relief settles a debt on your behalf, it will then release the money from this escrow account to pay your creditor.
Bankruptcy
Bankruptcy is a legal process that gives people in serious financial difficulties a chance to restructure their debts. The laws that created bankruptcy were written to give people a chance to start over when their finances collapsed, whether it was a result of bad decisions or bad luck.
There are two ways to file for bankruptcy: Chapter 7 wipes out all your debt and Chapter 13 allows you to pay back creditors in a plan that lasts three to five years. Both are a long and costly process that can be complicated by the need for legal representation.
Debt settlement, on the other hand, offers a shorter and cheaper solution that can be easier to implement than filing for bankruptcy. It also has the added benefit of reducing your credit card balances, which may help your credit score. It is a good option for people who are at risk of filing for bankruptcy. However, it does come with some negative consequences, which is why it should be a last resort.
