Debt Relief Options - Ohio
If you have multiple, high-interest credit cards and other unsecured debts that are causing you financial distress, you may be interested in finding out your debt relief options that can not only help you get out of debt but may also lower your payments. One of those options is debt consolidation through credit counseling, which can combine all your credit card and unsecured debts into one, more manageable, and more structured monthly payment.
However, some consumers have the type of debt that qualifies them for debt settlement - which is another viable debt relief option. Also known as debt negotiation, debt settlement allows you to settle with your credit card companies for substantially less than what you owe. These days, many consumers have made both debt consolidation and debt settlement preferable alternatives to bankruptcy - which has a more severe and longer lasting impact to one's credit rating.
To find out how debt relief can help you pay off debts, get your free debt relief analysis and savings estimate from OhioDebtRelief.org. Start now.
Benefits of Consolidating Debts
When you enroll in a debt consolidation, or a debt management plan (DMP), credit counselors will, initially, review your finances, how much you owe, and how much money you can reasonably allocate to paying down your debt. Then, they typically ask your individual creditors for more lenient repayment terms - such as reduced interest rates or a waiver of late fees or penalties. Creditors that agree to the requests are then placed into the debt management plan.
Debt consolidation, as the term suggests, involves combining all your credit card and unsecured debts (like medical bills, gas cards, or store card charges) into one, easier-to-manage, and more affordable payment plan. In addition, another benefit to debt consolidation is that you can, ideally, pay off your debts at an accelerated and a more predictable pace.
Settle Your Credit Cards
Do you have one or more high-balance credit card debts that you're no longer able to make payments on - perhaps due to unemployment, a medical emergency, or from out-of-control spending? If so, a debt settlement program can give you an opportunity to negotiate with creditors for much less than what you owe.
By settling your debts, you can certainly save a substantial amount of money. But keep in mind the potential downsides of seeking relief with a debt settlement program: Credit card companies are certainly not legally required to accept your settlement proposal - in other words, they may or may not agree to settle.
Debt settlement clients are also typically advised to stop making credit card payments and instead, to set aside funds, over a certain period of time, to be later used for a settlement offer. Consumers who stop making payments to save up funds are, in general, defaulting on the terms of their credit card agreements - which is likely to result in a decline in credit score. In many cases, creditors may even threaten to take legal action to collect their debt.
But despite all the risks to their credit, many consumers have made debt settlement a preferable alternative to bankruptcy, which has a more damaging and longer lasting (usually up to 10 years) impact to ones credit.
Choosing Debt Relief
When you are ready to regain control of your finances and get on the road to becoming debt-free, make sure to explore and understand all your debt relief options, and know the pros and cons of each. Regardless of whether you choose to take advantage of a debt consolidation or debt settlement program, make sure to do your due diligence and make a commitment to set aside money to pay down your debts.
Find out which debt relief option is right for you by clicking here to get your free debt relief analysis and savings estimate. Start today.