The government has many excellent credit card debt relief programs set up, along with other types of debt relief. The advice available from the government applies to debt from $1,000 to $100,000 or more. However, these are not programs that will assist consumers with settling or paying their debts. Instead, these are agents or officers within government agencies who will assist with advice on budgeting, dealing with creditors and managing loans.
There are other services, in addition to the assistance offered by phone or email from these agents. The government may refer individuals and families to their website. On the site provided by the government, they post documents that provide information on budgeting and loan payment management.The information provided from government credit card debt relief programs may help. In the end, however, it will do nothing to settle outstanding debts. Owing money that cannot be paid can cause stress in every facet of someone’s life. These debts can be a burden not only financially, but also psychologically.The pressure of owing outstanding balances increases as payments are demanded, especially if the money is simply not available. As soon as a payment is made, the company applies it to interest due. With only one company paid, other companies that are owed remain unpaid, and nothing is paid onto the principal amount of the loan that is continuing to gain interest.
When a consumer owes credit card balances, bank loan payments, unpaid payday loan accounts and money borrowed from any establishment, life can become an endless stream of phone calls. The phone calls and harassment can be a problem whether you owe $5,000 in Texas or $50,000 in Wisconsin. The calls happen in the morning, afternoon and into the evening hours.
Most phone calls are automated machines requesting a call from the account holder to a particular number. When a person is calling, the conversation is usually extremely negative and demanding.
On top of the phone calls, letters and cards arrive in the mail daily warning of the consequences if the debts continue to be unpaid. These letters increase stress further as they are almost always demanding payment and threatening legal action if the balance remains unpaid.
In addition to the stress of constant phone calls and letters demanding payment, the consumer must also be mindful of the end game. In the end, there are only a few possibilities of outcomes from owing large amounts of debt that remains unpaid.
A company can take a consumer to court in order to demand payment. Companies are also constantly adding interest and fees on top of balances that remain unpaid. With the addition of these extra charges, the consumer is left with payments that do not apply to the actual amount of the loan or balance, and the cycle continues.
Bankruptcy is listed as an option, but this should be a true last ditch effort. Many times debt remains intact from bankruptcies. Some debt, like student loans, cannot be added to a bankruptcy.
Debt consolidation is an option that works for many people. It can become confusing when reviewing the two types of debt consolidation. One option is consolidating all debts into a loan.
Consolidating all debts into a loan is essentially taking out another loan. Like the other loans, this loan can go into default, build interest and end up creating more debt, more harassment and more stress.
The best option for consumers barely making it with their minimum payments, or trying to dig their way out from under serious debt, is looking into consolidation through settlement. Settlements offer a way of lowering the balances owed to a reasonable balance that works for both parties.
Why does a settlement work for a company if you owe more than the settled amount? It works because many times a company will expect to have to pursue a consumer who is not making timely payments. This can result in collection costs, court costs and even a write off of the balance. With a settlement, the company can close the account with partial payment.
If you are barely making the minimum payments to get by, or even worse, if you are missing payments and watching the interest and debt pile up, a consolidated settlement will be the perfect answer to your financial problems. With a consolidated settlement, you will have one low monthly payment. This payment amount will reflect what you can afford to pay monthly and with the settlement, relieve the stress of the debts you owe.
Fill out the form on our site or give us a call to find out how a consolidated settlement can ease your debt woes today.