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Debt Relief Facts: A List of What You Should Know

By: Michael Millington

When it comes to the multitude of ways you can eliminate debt, information can become convoluted. Many forms of debt relief are offered through businesses looking to make a profit on your need. While this isn’t a bad thing, the methods that some of these businesses may employ to appeal to you might not be the most helpful. This is one of the many debt relief facts that you should know before seeking out a relief service. Here we will discuss other debt relief facts you should be aware of.

4 Debt Relief Facts You Should Know

Not All Debt Relief is Free

Sometimes, debt relief has a way of seeming too good to be true. With the promises debt relief methods (and companies) make, it can be hard to know what to believe. One thing that is almost universal is the fact that debt relief is a paid service. While some services receive payment traditionally, others utilize fees (like a debt consolidation loan) as a substitute. The only form of debt relief that can be completely free is credit counseling. With this being said, be aware of debt relief companies who claim they work for free.

Debt Relief Will Always Take Time

Unless you pay off your debts with your own money, debt relief will take some time. Debt consolidation loans need to be paid back over time and, many times, with interest. Debt settlement companies take time to negotiate with your lenders to get you the best rates. Bankruptcy requires a lawyer to prepare your file and can still take months to take effect. No matter what form of debt relief you look to enact, it will take some time to complete.

Certain Forms of Debt Relief Aren’t For Everyone

There’s a reason that multiple forms of debt relief exist in the first place. Depending on your income, amount of debt and monthly financial obligations, the type of debt relief you need might not be the same as others. The key to knowing what will work for you is research. Research the options available to you, then research your past earnings and spending habits. If you don’t earn enough to pay all of your debts, then bankruptcy might be your solution. If you can pay your debts but have a substantial number of them, perhaps debt consolidation might suit you.

All Forms of Debt Relief Have Detriments

Another reason there are multiple debt relief options, each form has a negative aspect. Out of all the debt relief facts in existence, this is one of the more well known facts. Whether it’s the length of time it takes, the types of debt it handles or what it might do to your credit, each type of debt relief has an obstacle that needs to be overcome. As with the other debt relief facts, it pays to do your research and deduce what you can handle.