Debt Relief Reviews - Five Star Reviews or BBB A+ Ratings?
Many of you struggling with credit cards and other unsecured debts might be searching for the highest reviewed debt relief programs or plans that are available. To start, it's very important to understand that no two debt situations are exactly the same. Therefore, it's key to select the debt relief or debt resolution program that is best designed to meet your specific 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 as that rating generally is the strongest indication of a company's true commitment to customer satisfaction. It's also a positive sign that the company has been successful at fulfilling a customer's expectations.
Like so many others across the country, many Minnesota residents often find themselves struggling with high interest credit cards and other unsecured debts such as store cards, gas cards, medical bills, doctor bills and more. If this is your situation, you may be searching for information regarding debt management programs, or debt management plans (DMPs) coordinated by credit counselors or debt counselors. You may also be considering alternative debt relief options such as debt settlement, debt negotiation, or even bankruptcy. Regardless of your current debt situation, it's important to understand the clear distinctions between these debt options and how they can each help provide relief for consumers experiencing financial hardships.
Credit Counselors Personalize Debt Management Plans
A debt management program through credit counseling typically involves taking multiple credit card and unsecured debts, and combining or consolidating them into one, more affordable and easier payment each month. Created with the help of a credit or debt counselor, by requesting and being granted the benefits of debt relief such as lower interest rates and the waiving of late fees and penalties, a debt management plan is designed to help consumers save a substantial amount of money and get out of debt at an accelerated pace.
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 can a debt management plans (DMPs) be personalized for your situation? Credit or debt counselors will typically 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 full knowledge 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 design a customized debt management plan (DMP) that calls for you to temporarily cease using credit cards and make one consolidated payment each month to the credit-counseling agency. Those monies will then be distributed to creditors one by one. It's important to understand that, before this plan can be put in place, the the plan must be submitted to creditors requesting that they agree to extend the benefits of debt relief to the consumer 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 who understand that you are truly experiencing a financial hardship may be more willing to agree to the proposals submitted by credit or debt counselors. Upon their acceptance of proposals, they are then added to the debt management plan. For creditors who do not agree to extend the benefits of debt relief, you are still obligated according to the original terms of your cardholder agreements.
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.
Credit counseling agencies can also provide a variety of additional debt relief services including help with budgeting, developing good spending habits, financial education and more through certified credit counselors or debt counselors. Truly outstanding debt relief or credit counseling agencies will always include a strong educational component to their program. They will not only help you get out of debt, they will also help you come to grips with the root cause of the debt crisis and give you the necessary tools to put the cycle of debt behind you for good.
Debt Management Is a Proven Path to Save Money
Debt management or credit counseling is a proven method for debt relief that has helped many individuals and families. However, it's important to know that debt management requires a certain amount of discipline and restraint to avoid credit cards. Enrolling in a debt management program also requires you to make on-time consolidated payments month after month, and an overall dedication to "stay the course" and complete a program that typically 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 see debts begin to dissolve as you make payments month after month and stop using your credit cards, your debt free day arrives before you know it! Ask anyone who has stayed with a debt relief plan and experienced the life-changing benefits first hand. The bottom line: Debt relief does not make debts magically go away but it has provided welcome relief and helped countless individuals and families escape the debt treadmill and get on the path to a life of financial freedom.
Understanding Debt Relief Alternatives to Consolidation
Another alternative debt relief option to debt management through credit counseling is debt settlement. Many times sought after by individuals who may be considering bankruptcy, debt settlement or debt negotiation is typically the right fit for individuals and families who have high interest, high-balance credit card debt. It is a more aggressive form of debt relief that has helped consumers get out of credit card debt faster, assuming monies can be "set aside" to build up a "lump sum" amount that can later be used to extend a settlement offer to creditors. It's important to understand the difference between debt settlement and debt management: With debt management you are actually paying off everything you owe, but saving money through much lower interest rates and a waiving of late fees and penalties. The objective of debt settlement is to "settle" with credit card companies for substantially less than is currently owed.
Why would credit card companies consider "settling" 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. Finally, debt settlement will likely have a negative impact on personal credit, but not as serious or long lasting of an impact as personal bankruptcy.
For some consumers who are experiencing financial hardships, regardless of their debt situation, the relief they need may be more immediate. As a type of lifeline, the state of Minnesota has programs available ranging from food assistance, rent, childcare and even help paying for utilities. To learn more, go to the state's homepage and find the Social Services section.
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