This Article is About
debt consolidation loans
credit counseling services
debt consolidation loan
credit card balance transfers
credit card balance
excessive debt
economic times
negative impact
long haul
short time
credit cards
Debt Relief Options – The Inside Story
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Debt Relief Options – The Inside Story

Are you overwhelmed by debt? In these uncertain economic times, it wouldn’t be surprising. More and more people are looking for help to get their finances back on track. There are debt relief options available and help may be closer than you think.

Studies show that excessive debt is a heavy burden for people to bear. The negative impact it has on our minds and bodies is huge. So what can you do to get some relief from the debt that’s sucking all the joy out of your life?

There are 3 main debt relief options available, credit card balance transfers, debt consolidation loans, and credit counseling services. They are all there to help you, but like anything in life, you have to know the potential negatives of the situation.

Credit card companies offer one option for debt relief. They will often let you transfer the balances of your other credit cards to their card and offer you a much lower rate.

Up front this all looks great, but read the fine print. The lower rate is often only for a short time, then the rate goes up. If the new rate is still lower than what you were paying to start with, that could be a good deal.

In some cases the rate will actually be higher than what you were paying before. Sometimes a lot higher! So read the fine print and know what you are agreeing to before you sign.

You may be able to get a debt consolidation loan through your bank. By consolidating some of the debt you have into one monthly payment you could lower your cash outgo by quite a bit.

Once again, be careful of what you’re getting into. Rather than just focusing on the amount per month, you also need to consider what the new loan will cost you over the long haul.

It could be that they stretch the loan out longer; making the monthly amount you pay lower, but at an astronomical interest rate. In this case you will end up paying back far more than if you had just paid off what you had to begin with.

Credit counseling companies can also be very helpful when you are bogged down in debt. They will help you by working directly with your creditors on your behalf.

They will negotiate for you and get your monthly payment amount adjusted, sometimes get you a better interest rate, and they may even be able to get the amount you owe adjusted.

You would make one payment a month to the agency and it would be disbursed to your creditors. If you choose to use a credit counseling agency, be aware that they do get a fee for their services. In some cases you would have to pay, in others the lenders pay the fee. Make sure you know which type of agency it is before signing any contract.

And lastly, don’t let the situation you’re in get the best of you. Decide which of the debt relief options you feel most comfortable with and get the ball rolling. Soon you will be in a better financial place.


Street Talk

Good article. Credit counseling agency and other debt relief options are very popular now, aren't they?

Reply
  about 1 decade ago

Yes they are unfortunately!

Reply
  about 1 decade ago

Somethings to consider Thanks Lacey

Reply
  about 1 decade ago

Super nice article Lacey .. love the way it funneled into your site!

Reply
  about 1 decade ago

Thanks a lot Wayne!

Reply
  about 1 decade ago

Really nice article, Lacey. I especially like the part that says, "debt sucking all the joy out of life," because there are so many people who feel that way every day. Great tips as always! - Patricia

Reply
  about 1 decade ago

there are too many people having no joy, it's awful! Thanks for the kind words!

Reply
  about 1 decade ago
Golfspice  

Useful information Lacey, but as you rightly point out, loans can be very expensive as loan companies will often charge astronomical interest rates for late or non payments.

Reply
  about 1 decade ago

They sure do!!

Reply
  about 1 decade ago

very smart advice! Pinned.

Reply
  about 1 decade ago

Thank you so much Shawn!

Reply
  about 1 decade ago
Joan S  

Good advice Lacey.

Reply
  about 1 decade ago

Thanks Joan!

Reply
  about 1 decade ago

This is very good information to pass along....great post

Reply
  about 1 decade ago

Thank you very much!

Reply
  about 1 decade ago
Linda14  

Great advice. I'm not having problems myself, but have several friends that are need of help and will pass on the information. Do credit agencies work for back taxes, that seems to be a lot of people I know's greatest problem.

Reply
  about 1 decade ago

There are companies that work to get a payment plan set up for you with the irs. Some of them claim they can also get the debt reduced. Sounds like something I should research for future articles!

Reply
  about 1 decade ago

More and more people are needing advice like this .. great article!

Reply
  about 1 decade ago

thanks Wayne!

Reply
  about 1 decade ago
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