Getting out from under the weight of unsecured debt is incredibly difficult with no help. When debts build, credit scores are negatively affected, further limiting your financial options. The worse things get, the harder it is to make progress and catch back up.
If unsecured debts are quickly spiraling out of your control, with penalties and over-limit charges being added to your balance each month, the financial stress can be overwhelming. But fortunately, Alleviate Financial has solutions for reducing your unsecured debt to a level you can manage again.
Different Types Of Debt Relief And How They Work
There are a variety of options for debt relief. The most basic first step to getting debt help is creating a budget to squeeze out all available money to pay down your debt. It can be eye-opening how much the little extra splurges can add up, so make sure you start here.
A debt consolidation loan is a loan used to pay off multiple credit accounts, typically credit cards, to have just one simple payment each month with simple interest instead of revolving interest charges. The important thing to keep in mind here is that it’s crucial the old accounts aren’t used anymore but not closed, which might hurt your credit score. Cutting up credit cards is a smart method to avoid getting back into debt.
Debt management assistance from a credit counseling agency might be helpful for those with relatively decent credit still and enough income to make payment arrangements to get back on track.
Debt settlement is a more aggressive approach to reducing debts, with significant debt relief possible, but there can be negative impacts on credit in some cases.
The most relief possible for debt is filing for Chapter 7 bankruptcy, which clears off nearly all of your debt (except for student loans). However, not everyone will qualify for this form of debt relief, and the credit harm done by bankruptcy lasts many years after the debt is gone.
What Is A Debt Settlement Program?
People often interchange the term debt settlement with debt adjustment or debt relief. Whichever the term, it means negotiating with creditors to get the largest possible debt reduction. Companies that specialize in debt assistance like Alleviate Financial have professional debt negotiators that regularly deal with a wide range of creditors. These negotiation pros speak to your creditors for you, helping you get the best terms possible. Their experience in dealing with numerous different creditors regularly gives them a major advantage in your debt settlement process.
Alleviate Financial helps clients in situations like yours escape debt by getting reductions in interest, fees, and penalty charges, along with balance reductions. We also help you set up a savings account to negotiate settlement offers with your creditors.
Debt Settlement Help From Alleviate Financial
With debt settlement help from the experts at Alleviate Financial, your credit cards and medical bills can be significantly reduced, making it possible to pay off your debt faster and with fewer fees and interest charges. We provide you the help with debt you need quickly.
What are the types of debt, and which ones can debt settlement help with?
Revolving debt is most commonly unsecured debt, and the balance can go up or down with repeated use of the account. For example, if you use a credit card and pay it off each month. Home equity lines of credit are a special example of revolving debt because they are secured debt guaranteed by the borrower’s property. Using this type of debt has a big effect on your credit, and the further you go over 50% utilization of these accounts, the more your credit score can go down.
Non Revolving Debt
The majority of non-revolving debt is secured, as in the case of home loans or car loans. That said, exceptions exist, as with student loans. From the start, the loan amount is set and can’t be increased for more borrowing power. The payment stays the same from beginning to end in most cases. Once the balance is totally paid off, it can’t be reused.
When debts are backed by assets that the bank can seize to repay the debt, that’s called a secured debt. Having an underlying asset provides the bank security for recovering their money if the borrower stops paying. This type of debt can result in having some property like a car repossessed, which is particularly disruptive to normal life.
Unsecured debt isn’t backed up by any property or assets that protect the bank from losses. The only way the lender can collect is using legal actions to obtain a wage garnishment in some cases.
Student loans, credit cards, and medical bill debt are all unsecured forms of debt. Most often, unsecured debt is the culprit for people finding themselves in deep debt they can’t escape without assistance from professionals like Alleviate Financial. Credit card debt relief is available. Contact Alleviate Financial today and talk to a specialist about debt settlement possibilities.
How Much Can Debt Settlement Help?
Alleviate Financial helps clients establish a debt settlement program that will get them back on track for a brighter financial future in less time.
Debt settlement helps:
- Reduce debt balances in a consistent way that pays the debt off faster than possible paying minimum payments alone. In many cases, debts can be paid off in less than a few years.
- Get major reductions in unsecured debts through expert negotiation of dropping penalties and interest charges, along with settling principal balances.
- Establish a program payment that you can afford each month with a dedicated savings account.
Debt Settlement Isn’t A Perfect Solution
While debt settlement can make a huge difference if you’re in an extremely difficult financial situation, it’s not a perfect solution. Before the debt is fully paid off in the settlement program, there will be a period of time when credit scores will be negatively impacted. But once the settlement is complete, scores can begin rebounding much more quickly than they would have with a bankruptcy.
If you’re trying to avoid bankruptcy but desperately need to reduce your monthly unsecured debt payments, debt settlement can be a tremendous help for alleviating your financial burden. Alleviate Financial’s team of debt settlement specialists work hard to get our clients the help they need to start getting ahead. Contact us today to regain your financial future.
Contact us today to learn if debt settlement can help you.