Do You Need to Payoff Debts Faster?
Many consumers in Minnesota and across the country are finding themselves struggling with unmanageable credit card debt that's seemingly inescapable. Unfortunately, what begins as a temporary situation can easily reach a crisis level and become a way of life as it becomes more and more difficult to payoff credit cards or pay down debts. Symptoms of out of control debt are high interest rates, minimum payments that are harder and harder to make each month, or even using credit cards to pay for some of the essentials in life - such as gas, food, or medicine.
Find out if help is available through a structured debt relief plan coordinated through a BBB-accredited debt relief provider. Answer a few simple questions online to Request Your Free Debt Evaluation and Savings Estimate.
Payoff Debts Through a Debt Consolidation Plan
With the help of a credit counselor or debt counselor, consumers can seek debt consolidation, or a debt management plan (DMP) to help pay down or payoff credit card debts on an accelerated schedule. The goal of debt consolidation is to combine or "consolidate" all of one's credit cards and other unsecured debts into a single, more convenient, more manageable payment each month. This payment is made to the debt consolidator who then distributes the payments on time month after month to creditors until debts are resolved.
What Are the 1-2-3 Steps to a Debt Management Plan?
Typically, in order to create a debt management plan, an accredited debt relief provider will conduct a free consultation or free debt evaluation. The credit or debt counselor will get the details necessary to verify the amount of credit cards and other unsecured debts. Then, the debt specialist will find out how much in monthly income can reasonably be allocated to pay down debts month after month. With this information in hand, the debt relief specialist will then create a personalized debt relief plan and make proposals to each creditor, requesting that they agree to assign their debt to the plan. Included in this plan are the benefits of debt relief that the creditor must first agree to before the plan can be put in place. It's important to understand the benefits, as they are vital to the success of the program:
- Lower, More Affordable Monthly Payments
- A Reduction in Interest Rates
- A Waiving of Late Fees and Penalties
- A Consolidation or Combining of all unsecured debts into a single, more manageable, monthly payment
- The above benefits of debt relief which must first be approved by creditors can save consumers a substantial amount of money be the key to helping consumers get out of debt in less time if credit cards terms included the higher interest rates and only minimum payments were made month after month.
If you need to payoff debts or get out of debt on an accelerated timetable through the benefits of lower interest rates, find out if help is available through a structured debt relief plan from a BBB-accredited debt provider. Get your free debt evaluation and savings estimate.
Seeking a debt management plan (DMP) coordinated through a debt counselor can be powerful and effective in resolving debts. When consumers acknowledge that they have a spiraling debt problem and agree to reach out for help, they must first agree to stop using credit cards. By "freezing" their debt level, essentially half of the problem is solved. Then, existing principal amount of debt is paid off month after month on time, and hopefully, at a significantly reduced interest rate. That means more of a consumer's payment each month goes to attack the principal amount of debt until the debt is completely resolved and the debt-free day is celebrated!
Debt Relief is Simple Math - Does It Work?
Debt consolidation or debt management plans (DMPs) might be basic and "simple" to grasp but are they truly effective in helping consumers get out of debt? The answer is "yes" if enrolled consumers maintain the discipline necessary to set aside the funds needed each month so the debt services provider will be able to distribute payments month after month to creditors. However, many people who do get into serious debt often find themselves in that money crisis in the first place because they don't practice good budgeting and spending habits. Therefore, continuing those habits, no matter how effective debt management programs are, will not be successful. However, the good news is that debt management plans have saved thousands of dollars and been a lifesaver for many individuals and families who simply decide it's time to put the cycle of debt behind them and do what's necessary to change spending habits to regain control of their financial future.
To learn more about your debt relief options and how a debt consolidation program coordinated by a BBB-accredited provider can help, answer a few simple questions and Request Your Free Debt Analysis and Savings Estimate.
Will Debt Settlement or Debt Negotiation Help?
For those facing a serious high-balance credit card debt crisis, debt settlement or debt negotiation may be a viable option to filing for personal bankruptcy. In seeking debt settlement, consumers in financial distress commonly stop paying high interest credit card minimums and "set aside" those funds each month in order to accumulate a "lump sum" amount that can later be used to extend a debt settlement offer, through a debt negotiator, to a credit card company. For credit card companies facing the prospects of possibly "selling off" bad debt for as little as 10 cents on the dollar, they might be willing to accept a negotiated settlement offer from a consumer truly experiencing a financial hardship. While debt settlement can save a substantial amount of money and it can be a positive alternative to bankruptcy, it is an aggressive debt relief option whose drawbacks should be recognized from the outset:
It's important that consumers understand that when they stop paying cards according to the terms of their agreements, creditors can threaten or take legal action. In addition, money that is saved by settling for substantially less is subject to taxation. Finally, debt settlement will normally have a negative impact on personal credit, but not as serious or long lasting an impact as personal bankruptcy.
If you are struggling with credit cards and other unsecured debts and in need of debt relief assistance, learn more about your debt relief options and request your free debt relief estimate and savings analysis.
Get Debt Relief and Get Your Life Back
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.
Help is available through a variety of options for the many Minnesota residents and others across the country who are truly overwhelmed with credit cards and other unsecured debts. Keep in mind that because every individual's debt situation is unique, it's wise to compare and contrast all of your debt relief options, do your due diligence, and take the time necessary to review all your options. Gain a clear understanding of the debt relief program or plan you are evaluating, the BBB accreditation or standing of the debt provider, how much you could save, and how long it will likely take for you to realize those savings. Although debt relief does not make debts magically go away, debt relief can and has helped many individuals and families get out of debt faster, save a substantial amount of money, and put the cycle of debt behind them. It is a proven plan that can put you on the path to financial freedom and that fact alone can not only save thousands of dollars but years and years of stress and discord.
If you are a resident of Minnesota struggling with credit cards and other unsecured debts and in need of debt relief assistance, learn more about your debt relief options today. Get a free debt relief evaluation and savings estimate - at no cost to you.