For people who want to relieve their financial burden, debt relief options are an ideal way of lessening your load. Debt resolution programs involve negotiating with certain types of creditors to get them to agree to reduce your balances and/or monthly payments.
However, debt resolution services can be complicated to navigate. As such, people find that hiring the help of a professional debt relief company like Alleviate Financial gets the best results.
What is a Debt Resolution Program?
The general premise of debt resolution is centered around negotiation. Each of the creditors for your eligible debts must be dealt with individually. For those that are inexperienced, that could mean many months of trying to get the best repayment terms.
The downside to debt resolution is that not every type of debt is eligible. Debts such as student loans, overdue taxes, auto loans, and home loans do not qualify. The good news is the worst types of debt — credit cards and collections — can be tackled through a debt resolution program. This is exciting news for anyone that’s been dealing with harassing calls and demanding letters that threaten legal action for past-due debts.
How Does Debt Resolution Work?
Typically, people turn to debt settlement companies to handle everything from structuring the debt management plan to negotiating with creditors on their behalf. So how might debt resolution be the best way to resolve your debts?
Let’s take a look.
Step 1: Structuring The Deal
The debt resolution process begins with determining the best course of action. Everyone has their own unique mix of debt, and not every type of debt can be included in a resolution program. A debt expert from a company like Alleviate Financial can help make sense of your credit report and financial statements to figure out what your best options are.
Sometimes, credit counseling services are all that’s necessary. But other times, debt resolution or debt settlement might be the better choice in the long run. Find a company that offers a free debt analysis. This way, you can rest assured you’ll be presented with more than one course of action to choose from.
Step 2: Negotiating With Creditors
Once your financial situation has been fully analyzed and a plan has been made, it’s time to negotiate. Making appeals to creditors about your financial hardship is the main objective. This will provide a compelling reason for your creditors to reduce your monthly payments to a level you can handle. If you have large student loan payments, a home loan payment, or medical bills, it will be easier to get agreements from unsecured creditors.
Often, credit card companies are reluctant to set up a repayment plan unless you have severely delinquent debt. So, having the help of a debt relief company can make a huge difference and solution in the results you get.
When options like a debt consolidation loan or help from credit counseling agencies are limited by your credit history, debt resolution could be the best chance for your creditors to still get paid. Because of this, expert negotiation can make a big difference in the results you get.
Step 3: Become Debt-Free
Once a debt resolution plan has been negotiated with your lenders, it’s time to start working on payment plans. Typically, you’ll just have one monthly payment instead of many credit card payments, making it much easier to budget in advance.
Keep in mind, however, that debt repayment can sometimes mean still paying other lenders individually, such as car loans, home loans, and student loans. So, it’s important to make a solid strategy and stick to it.
The best debt resolution companies will help you create a budget that will ensure you become debt free. Beyond the resolution payment terms, they can help you prioritize which debts to pay down first for the greatest financial advantage. The result is becoming debt free much faster than without a defined plan of attack.
What Are the Benefits of Debt Resolution?
If debt resolution sounds complicated, you might be wondering what the benefits are. Let’s take a look at a handful of the benefits that might make debt resolution your best option.
Stop Harassment From Debt Collectors
Perhaps the greatest benefit of debt resolution is that it can put a stop to calls from creditors. No one likes getting nasty letters and calls from collection agencies and credit card companies. They can be embarrassing, not to mention stressful at a time you’re already feeling financial pressure. Working with a reputable debt resolution company like Alleviate Financial can put a stop to calls and letters from debt collectors and creditors, providing the relief you need to get back on track.
Pay Off Unsecured Debt Faster
Beyond getting a break from creditor harassment, debt resolution can help you pay off unsecured debt much faster. Typically, unsecured debt is also revolving debt, such as credit cards. These types of debt can be incredibly difficult to pay back down once they’ve swelled to a certain level.
By restructuring how the debt is repaid, a debt resolution program can slash the time it takes to pay off your unsecured debts. Once these debts are under control, it’s far easier to begin paying down your secured debts as well.
Avoid Filing For Bankruptcy
When you fall far behind on your debt repayment, it can start to feel like desperate times. Thoughts of bankruptcy might begin sounding very appealing. However, few people qualify for the type of bankruptcy that wipes the slate clean.
The reality is, most people wind up with a Chapter 13 bankruptcy that requires lengthy repayment plans. Your credit scores will take a tremendous hit for up to 10 years if you choose bankruptcy. Debt resolution provides an alternative that might still impact your credit, but only for a few years.
Finding The Best Company for Debt Resolution Program
When you’re seeking the best debt resolution program for your financial future, look no further than Alleviate Financial. Our team of debt experts will help you determine the most beneficial course of action for your family’s future. Reach out today and get a free debt analysis and see if debt resolution could help you become debt free!