If you’re one of the many Americans struggling with credit card debt, you’re not alone. In fact, credit card debt is at an all-time high, with Americans owing more than $1 trillion in debt. The good news is that there are numerous ways you can fight credit card debt and win, with the help of debt experts.
By working with a debt management company, you can create a plan to pay off your debt in a timely and efficient manner. Additionally, you can work on building up your credit score so that you can qualify for lower interest rates in the future.
Are you ready to get serious about fighting your credit card debt? Then read on and start down the path to becoming debt free from credit cards.
Types of Unsecured Debt
Not all debts are created equally. Some debt is secured, which means you risk losing your property if you can’t repay the debt. Examples include car and home loans. Thankfully, unsecured debt doesn’t carry the same level of risk, but it can still have a huge impact on your financial life.
What are some of the types of unsecured debts that have the highest potential for savings when working with a debt management service?
Debt Sold to Collection Agencies
When your creditors sell your credit card debt to a collection agency, it’s likely there will be huge fees added to the debt so they can profit. Debt management services can help slash these fees to reduce your cost to clear the debt.
The experts at a debt relief organization are well versed in dealing with these types of creditors. They can help with drafting documents that improve your chances of success by offering monthly payment plans that work for everyone involved.
Credit Card Debt
Credit cards are unsecured debts, which means the lenders can’t come to take your assets if you default on the monthly payments. However, these accounts impact your credit rating tremendously, making it hard to improve your finances if you miss payments.
The best debt management services will contact these lenders on your behalf to help you get the debt paid down in less time, and with the least negative financial health.
Medical Debt
Another type of unsecured debt is medical debt. These accounts can be incredibly confusing, as the data that gets passed from one creditor to the next is protected by legislation.
Companies that are experts at achieving debt relief for their clients will know exactly how to find solutions in these circumstances.
Considering the Consequences of Your Credit Rating
Most people understand the importance of credit scores, so dealing with credit card debt is often centered around keeping these numbers high.
Let’s look at how two types of debt services might affect your credit.
Bankruptcy Options
Bankruptcy comes in two forms, Chapter 7 and Chapter 13. The first type has the biggest impact on credit, lasting 10 years. The second can still remain for seven years and requires repaying your debts. This is why bankruptcy is always a last resort.
Debt Management
An alternative to bankruptcy that won’t have as big of a credit impact is debt management. Whether through debt settlement or a debt consolidation loan, this type of service comes with many of the benefits of bankruptcy without the lasting effects.
This includes stopping collection calls, reducing monthly payments, and slashing fees.
Working With Debt Experts to Reduce Unsecured Debt
Dealing with the burden of debt can be a tough situation to manage on your own. But there is hope. Working with a debt management expert can help you to get a handle on your debt and start working towards a brighter future.
A debt expert can assess your situation and create a customized plan to help you pay off your debt. They can provide guidance and support to help you make smart choices about your money. And they can negotiate with your creditors to get you lower interest rates and more favorable repayment terms.
If you’re ready to get out of debt, a debt expert can help you make it happen. What can you expect on your journey to financial freedom?
Reduced Monthly Payments
A debt expert can help you reduce your monthly payments on your credit card accounts. The success of clients is the primary objective of these professionals, so starting with saving money every month is a top priority of any debt management program.
Sometimes this means rolling everything into one monthly payment that the debt management service uses to pay your creditors in return for better terms.
Creating a Workable Budget
Another benefit of working with a debt expert is they can help you create a workable budget that will ensure your efforts are a success. The bills you have beyond credit cards will have a big impact on paying down your debts, so getting things moving in the right direction is essential.
Unsecured debts are always at the top of the list, as the monthly payment for this type of debt is often high compared to the balance owed.
Reduction of Interest Rates
Lowering the interest rate on each credit card is another main job of debt advisors who get results for their customers. When you’re paying high interest on massive debt, it can be next to impossible to dig yourself out from under unsecured debts.
If your income is relatively the same from one month to the next, lowering your interest rates is one of the few ways you can get debt relief. Be sure to research and compare the companies you’re thinking of working with. That way, you can find which one has the best client feedback when it comes to a focus on interest rates.
Get Professional Help with Your Financial Situation
When you need resources for dealing with creditors, getting the advice and financial guidance of debt management experts is invaluable. Don’t trust the future of your finances to just anyone – you need a program that’s proven to get results.
One program to help you get your money life back on track is Alleviate Financial. Our debt relief experts are here to discuss helping you become debt-free.
Get started by filling out our online form or contacting us at 877-879-4905 at Alleviate Financial Solutions today!
