Company Reports

Debt Relief: Everything You Need to Know

Debt Relief: Everything You Need to Know

How much does debt relief cost?

Cost: The company collects a fee when a debt is settled. In 2010, the Federal Trade Commission made it illegal for debt settlement companies to charge upfront fees. National’s fee varies from 15% to 25% of your total enrolled debt, depending on the amount you owe and the state you live in.

Debt Relief

Navigating debt can be overwhelming, but there are many options for relief available to those who need it. With the right strategy, resources and creditors, individuals are able to manage and reduce the burden of debt in order to pursue a more secure financial future. This article will provide helpful information on the different types of debt relief, how to find potential solutions and frequently asked questions.

Types of Debt Relief

The first step in finding the right debt relief is understanding the four types available: loan modification, credit counseling, debt settlement, and bankruptcy.

Debt Relief: Everything You Need to Know
Debt Relief: Everything You Need to Know

Loan Modification

In some cases, loan modification is an option for people who are struggling to make payments. It is a process in which a creditor and borrower mutually agree to adjust the terms of the loan to make it more manageable for the borrower. This could include extending the loan, lowering the interest rate or reducing the total amount. It’s important to note that loan modification may not be possible with all creditors.

Credit Counseling

Credit counseling is a type of debt relief that is meant to help individuals gain a better understanding of their finances. During counseling, an experienced professional will review one’s financial situation, give advice and help devise a plan that can reduce current debt and manage future debt payments. Depending on the organization, some credit counseling may be free or eligible for low-income individuals.

Debt Settlement

Debt settlement involves negotiating with creditors to reduce the total amount of debt owed. This option can be time consuming and may have an effect on one’s credit score, however, it may be worth it to those who are struggling to pay back creditors. In this type of debt relief, it’s important to remember that settling for less than what’s owed can be considered taxable income, so talk to a financial advisor or tax consultant before

Leave a Reply

Back to top button

AdBlocker Detected

Please Disable Your AD Blocker And Tracking Settings.