If you’re struggling with credit card debt, here’s what you need to know: with the help of a debt relief program, you could resolve your credit card debt in as little as 24 to 48 months.
Even more importantly, you could wipe out your debt for less money than you actually owe. If you’re unsure what to do about your financial status, it’s time to learn about and take advantage of available debt relief options.
Don’t Fall for Debt Consolidation Loans
The first choice many people make when they’re drowning in debt is to take out a debt consolidation loan. It’s an incredibly tempting option: debt consolidation loans promise you’ll be able to pay off all your credit cards in exchange for a single monthly payment and a lower interest rate.
But there’s a catch.
Debt consolidation loans won’t set you on the path to becoming debt-free. Debt consolidation loans are given out by lenders – or financial institutions like banks – and these lenders wouldn’t offer them to you if they didn’t expect to make money off you. The lender expects, and wants, to charge you more money.
That’s why, as Lifehacker¹ reports, debt consolidation loans typically offer longer terms that cost you more money long-term. Even a loan with a lower interest rate than your current credit cards could wind up costing you far more money in years of interest, making your debt even worse.
And debt consolidation loans are only given to those who are “credit worthy.” If you have poor or fair credit, you won’t even qualify.
This is bad news for the millions of people facing high interest and mountains of debt they can’t fathom being able to pay off. That debt only grows with debt consolidation loans, leaving you worse off month after month.
There Are Other Options
Fortunately, there are other options and solutions for debt relief. Debt relief companies offer you the opportunity to design a repayment plan you can actually afford.
Everything in business is negotiable – and that’s what debt relief companies bank on. A debt relief company can help you reach a debt settlement.
What is debt settlement? It’s when you offer a large, one-time payment toward your existing balance in return for the forgiveness of remaining debt. This helps credit card companies because it clears you from paying just the minimum amount for decades to come. It can also protect your credit score and prevent you from having to file for bankruptcy.
When you work with a debt relief company to reach a debt settlement, the credit card company has to accept less money than you actually owe – and they can’t continue demanding more money from you. You’ll be able to pay off your debt in a lower lump sum, eliminating all of your financial woes and the burn of credit card debt.
And you’ll save hundreds, if not thousands, in the process.
Find the Right Debt Settlement Company
If you find the right debt settlement company, they could help you negotiate a price much lower than what you owe your credit card company. Every debt relief company negotiates on your behalf, working to eliminate your debt quickly and for an amount you can afford.
But you must do your due diligence and research debt settlement companies online. Read their reviews and ask about their settlement savings and experience. Get a consultation – many companies offer free consultations – and get an estimate of how much a debt settlement could save you. The right debt settlement company will be able to save you money and relieve your debt, leaving you feeling free once again.
Like anything, it’s always a good idea to be aware of the latest research. We recommend comparing at least 3 or 4 options before making a final decision. Doing a search online is typically the quickest, most thorough way to discover all the pros and cons you need to keep in mind.