Credit Card Debt Relief - Ohio
Are you feeling anxious about your future because of credit card debt? If so, you're not alone. Like you, many residents in Ohio are also struggling to pay off their credit card bills due to any number of reasons, including unemployment, large medical bills, or an unexpected personal hardship. In addition, you may also be struggling with unsecured debts, which may include department store bills, medical bills, or any type of debt that is not tied to an asset that can be considered collateral (like a home).
So instead of worrying about the future and whether or not you can find a viable solution to your debt problem, why not explore your options? These days, you have many debt relief options available - like debt consolidation through credit counseling, debt settlement, or even bankruptcy. Debt consolidation, or a debt management plan (DMP), combines a consumer's unsecured and credit card debts into a single, more manageable, and more structured payment made to a credit counseling agency. On the other hand, debt settlement involves negotiating with creditors for less than what is originally owed. Both options have actually been gaining acceptance among consumers and have become popular alternatives to bankruptcy - which severely impacts one's credit rating, particularly those who had good or excellent credit prior to declaring bankruptcy.
If you want to find out how debt relief can assist you, request a free debt relief analysis and savings estimate - today.
Benefits of Consolidating Your Debts
Many consumers who seek debt relief may find debt consolidation through credit counseling preferable if they like the concept of having one, easier-to-manage, and more affordable payment - versus having multiple, high-interest credit card debts to deal with every month. Facilitated by credit counselors, debt consolidation or debt management typically begins with a review of your outstanding financial obligations as well as the amount of money that you can comfortably allocate to pay off your debts.
Afterwards, credit counselors typically send proposals to your individual creditors requesting more affordable payment terms - such as reduced interest rates or waiver of late fees and other penalties. Those creditors who accept the proposals are then placed into the debt management plan (DMP), and typically receive payment from the credit counseling agency. Those creditors that do not agree to the proposals still need to be paid under the original terms of that particular credit card.
The goal of debt consolidation is, with a more structured and more lenient payment plan, you can - hopefully - pay your debts at an accelerated and more predictable pace. Many consumers, particularly those who may need help with sticking to budgets and organization can typically benefit from a more structured and simplified payment plan.
To find out how consolidating your debts can potentially lead to savings, answer a few, simple questions and get a free debt relief estimate and savings analysis.
Debt Settlement: Pros and Cons
Debt settlement as a form of debt relief is, fundamentally, a different approach than debt consolidation through credit counseling. With credit counseling, you are paying the entire amount of your debts; with settlement, you are hoping to settle, or negotiate, with creditors for substantially less than what you owe. Many credit card companies view debt settlement as a viable alternative to selling off "bad debt" to third-party debt collectors who often pay them as little as 10 cents on the dollar.
For many consumers, debt settlement is a smart financial move, but like other debt relief options, it also has risks: When you enroll in a debt settlement program, for instance, you will be typically advised to stop paying your credit cards and start accumulating funds over a certain period of time that you can later use to make a reasonable settlement offer. Under this scenario, when you are essentially "falling behind on your payments," you risk of being sued for defaulting on the terms of your credit card agreements. In addition, when consumers settle with a credit card company, those that generally had good credit prior to settling may see their credit scores go down. However, in spite of the risks to their credit score, the impact of debt settlement is still not nearly as severe or long lasting as bankruptcy.
Comparing Your Debt Relief Options
If you are overwhelmed with credit card and unsecured debts, you can breathe a little easier because you have several debt relief options available. Keep in mind that because every individual's debt situation is different, it is a smart move to compare and contrast all your debt relief choices, and do your due diligence when selecting a company to work with. It may also be a good time to take an honest look at your spending habits, determining where you can make small changes that can add up to big savings later.
The bottom line is, there is help available for you if you want to take the next step in paying off your debts, without having to resort to bankruptcy. Make the smart move and request a free debt relief estimate and savings analysis - today.