Debt Relief Program

Debt can create many problems for those who are unaware of how to handle it. When debt piles up, it can become a financial catastrophe in a very short amount of time. Many individuals have multiple credit cards, a personal loan or even some medical bills that may cause this problem. However, there are multiple methods that you can use to help alleviate the situation. A debt relief program can help to lessen the amount of debt you have. In some cases, a debt relief program can eliminate your debt altogether. Here are a few programs that can achieve these goals.

Debt Settlement

Debt settlement is a type of debt relief program that can lessen the amount of debt you have before you pay it off. Through the use of a debt settlement company, anyone with a fair amount of unsecured debt can have their debts negotiated down to a manageable amount. Instead of paying a lump sum to the credit provider, you would make monthly payments towards your debt settlement provider. These smaller, manageable payments can help you better manage your other finances as well, while your debt settlement company handles your credit provider.

Debt Consolidation

Debt consolidation is a debt relief program that focuses on organizing your debts instead of eliminating them altogether. If you harbor multiple debts, keeping track of them all can become a financial hassle. With multiple late fees and interest rates, each debt can become its own disaster. Debt consolidation has the distinct advantage of taking multiple debts and paying them all off with one debt consolidation loan. Instead of dealing with multiple debts, you would only have one large debt to deal with when all is said and done.

Debt Management

Debt management is a debt relief program that shares some similarities with debt settlement. Debt management can help to lower the amount of debt that you have by eliminating fees that have been added to your financial obligation. A debt management program is normally suggested through a credit counselor. Credit counseling can be a beneficial resource for those who are looking to learn more about how to handle their debt and their finances in general.

Bankruptcy

The one debt relief program that everyone is familiar with, bankruptcy is a form of debt relief that comes with the most immediate process of debt elimination available. Filing for bankruptcy can completely rid you of your unsecured debt, relieving you of your obligation to pay your credit providers. The downside to bankruptcy is the effect it has on your credit record. A bankruptcy can stay on your record for up to ten years. During this time it can be extremely difficult to procure any new forms of credit. While this is the best way to get rid of your debt quickly, it can also be the most damaging thing to your credit. Make sure you research bankruptcy before you decide to choose it.