Debt can be a heavy burden to carry, especially if you are struggling to make ends meet. If you are looking for ways to get out of debt, you are not alone. Debt relief programs can help you with a number of options available to those who are struggling to make their monthly payments.
For example, one option is to contact your creditors directly to negotiate for lower interest rates and remove fees. When you’re still paying on time but just need a little help with your finances, this is a great starting point.
Other options include consolidating your debts, debt settlement, and bankruptcy options. If you are struggling to get out of debt but don’t make much money, understanding all of your options is a huge help.
This article will cover how you can get out of debt even with a low income.
Hire the Help of Debt Experts
When you’re after financial stability despite not earning much, hiring a debt expert to help you pay down massive debt can make a big difference. From the monthly payment to the interest rates on your credit card debt, these professionals can help establish a workable budget.
Let’s look at some of the types of debt experts and what financial scenarios each is best for.
Credit Repair Services
Sometimes the biggest blocker to getting out of debt is a low credit rating. The lower your score, the higher interest you’ll pay, making it harder to pay down credit card debt. When you’re already struggling to pay your bills on time each month, even the modest savings on interest can make a big difference in your finances.
Although fees vary depending on your situation, hiring credit repair services could be money well spent if it saves you hundreds of dollars each month going forward.
These debt experts have deep resources when it comes to getting collection agencies to remove erroneous and harmful information. If you need a quick boost to your financial health, this is a solid first step.
Unsecured Debt Settlement
Settling your unsecured debts is one service that debt relief companies offer when you’ve fallen far behind on payments. In these cases, creditors are often happy to get any payment at all, enabling a debt expert to make a compelling case for settling for a smaller sum than the balance owed.
This can drastically reduce any fees or extra charges that have been heaped onto the balance you owe. A large percentage of the debt could possibly be wiped out in return for making a lump-sum payment.
If you don’t make much, this payment can come from a special savings account that the company sets up to help you build funds over time.
What Kind of Unsecured Debts Can Be Settled?
Are you considering debt settlement to get out from underneath a pile of debt? If so, you might wonder just which accounts can be included in a debt settlement. Let’s cover these next.
Credit Card Debt
The most common type of unsecured debt to settle is credit card debt. When you haven’t paid the card companies for some time, their accounting departments are happy to just get some type of money coming in.
Debt settlement companies contact these creditors on behalf of their clients to help guarantee the greatest savings with the least negative consequences.
It’s a frequent problem for medical bills to wind up becoming debts. With the complicated nature of health insurance, customers can be totally unaware that they’ll be on the hook to pay for their medical procedures.
Debts resulting from these scenarios can often be settled when the expert advisors of a settlement company step in.
Another type of unsecured debt that can be settled so you can save is collection accounts. Often, these debts have massive fees tacked on in an attempt to profit from your misfortune.
You can take control of your financial future and fight collection agencies with the help of a debt consolidation service.
Improve Your Financial Situation with Lower Monthly Payments
Hiring the help of a debt expert when you’re behind on payments can help you reduce the stress in your life considerably. By working with creditors on your behalf, a debt relief service can structure a debt settlement program that brings your payments down to a level you can afford.
No matter what you might owe, you can benefit from a settlement. If you compare this with bankruptcy, for the average customer the best advice for achieving financial stability is debt relief through settlement.
How Can You Save Money with a Debt Settlement Program?
Typically, a debt settlement program will create free savings account to build funds that can be used as negotiating leverage. To help provide relief quickly, any current debt payments are diverted into the savings account. This way, a more compelling case can be made when it comes time to get the creditor to agree to settle.
Once there’s enough money saved up, the debt expert reaches out to the creditor to start the settlement process. When the creditor agrees to the program, the funds from the savings account are sent to the creditor either in a lump-sum payment or as installment payments.
Usually, the entire process takes only a few years or less, making this a much faster process than bankruptcy. It’s also one of the least costly ways to get out of debt, which is ideal when you don’t earn a lot of money as it is.
Escape Debt on a Low Income with Alleviate Financial Solutions!
Whether you need debt settlement or debt consolidation, Alleviate Financial can help you choose the best method for getting out of debt.
From debt consolidation loans to debt settlement to bankruptcy, we can guide you through the process of getting free from debt that drains your monthly finances.
Work with our debt relief experts and learn how you can start saving money every month on your unsecured debt. Contact us at 800-308-2935 at Alleviate Financial Solutions today!