There are many levels of debt relief for people who are having trouble with their personal finances. Here are some options for those who need help with their debt issues.
Debt counseling
The first level of debt relief can be through a personal financial review. This can be done through non-profit debt counselling. After the analysis, ways to reduce costs through minimizing personal expenditures or ways to increase disposable income can be suggested.
Otherwise, debt management and debt settlement programs should be considered.
Debt relief programs
Debt management and settlement programs can assist people with their debt. A 15% charge each month is standard. The fee will cover administrative costs associated with handling the programs.
- Debt management is done by offering creditors a deal which will allow for an affordable monthly payment. This can also involve freezing payment on interest, subject to certain guidelines.
- Debt settlement involves writing off up to 50% of the unpaid credit card debt. The remaining portion can be paid over 12 to 36 months. The plan can be extended, but only if the creditor agrees with the terms.
- Debt consolidation is another option, where all your debt can be bundled into one package, allowing for a change in terms that may make monthly payments easier.
It’s important to seek debt relief and counseling as early as possible, to have a greater chance of easier terms to be offered to the person, which will also be acceptable to the creditors.
Sign up on the box at the right to get more information about debt relief and counseling.
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