When it comes to debt relief, debt settlement and credit management are often thought of as the same. However, there are differences between them that could make debt settlement a better option for your situation. For example, debt settlement offers financial relief but is not debt relief. Credit management, on the other hand, is debt relief.
Debt relief solutions range from debt settlement to credit counseling, debt consolidation, and bankruptcy to do-it-youself plans. If you have both tax debt and credit card debt, you should first consult a tax debt relief firm. They will be able to determine if you qualify for a debt settlement or if you are eligible for credit counseling. This is an important step because you will not be able to consolidate debt or apply for debt consolidation loans until after you have completed credit counseling. If you are in serious financial trouble, you may be advised to contact an agency that specializes in these circumstances so they can assist you.
If your credit situation does not improve quickly, debt consolidation may be your best way out of debt. You can consolidate all of your debt into one monthly payment that is lower than the combined amounts you were paying previously. There are many benefits to consolidating your debts including lower payments, faster payments, lower interest rates, and no late fees. You will also be repairing damaged credit while working to improve your financial situation.
Another debt relief option available is to work with an expert in debt consolidation. Most debt consolidation experts work on a contingency fee basis, which means they only receive a portion of the money you pay them if you are successful. An expert can help you work out a payment plan that meets both your needs and your budget. Once your plan is established, the expert will distribute the payments to your creditors monthly.
If debt settlement is not your best option, there are other debt relief options that do not require a credit counseling service. Debt settlement companies can help you negotiate with your creditors for lower payments, reduced interest rates, and possibly forgiveness of late fees and penalties. Depending on the company, they may require a monthly payment or a percentage of the total debt you owe. Again, depending on your credit score and the company’s ability to negotiate, this debt consolidation option may be your best debt relief option.
No matter what debt relief option you choose, getting started today will help you avoid financial ruin tomorrow. Do not wait to take action. Take action now by contacting a debt settlement company for a free consultation and get started today. You can learn more about debt relief options and how to avoid financial disaster by registering for a debt relief network. This network helps consumers like you get started today and save money by offering valuable information and guidance.