Get Debt Relief without a Personal Grant
Many individuals and families in Kentucky and across the country may be faced with unmanageable credit cards and other unsecured debts for a variety of reasons. While many consumers may be in search of a debt relief grant or some form of government assistance to resolve debts, this type of credit card assistance is not available. However, help is available to consumers struggling with out of control credit cards and other debts: in addition to personal bankruptcy, there are a variety of debt relief options that may provide relief for consumers through debt consolidation or debt management plans (DMPs), credit counseling, debt counseling, and even debt settlement or debt negotiation.
If you are experiencing a financial hardship and in need of relief, you can request your free debt relief evaluation and savings estimate to see if debt relief could help you.
Understanding Your Debt Relief Options
In addition to personal bankruptcy, which is considered the debt relief option of last resort - credit counseling, debt consolidation, debt management, or even debt settlement have become popular alternatives to bankruptcy. Through structured debt relief plans based upon your existing debt and available income to pay down those debts, you may find yourself breathing easier knowing that you can get expert help and get on a path to financial freedom.
To explore your debt relief options, answer a few, simple questions to get your free, no-obligation debt relief analysis and savings estimate today.
Debt Consolidation and Debt Consolidation Loans
If you are struggling with debts from multiple sources, like credit cards or other types of unsecured debts such as retail store cards, gas cards, doctor bills, utilities, or more, debt consolidation through a debt management plan (DMP) could potentially make it much easier to pay off debts at a pace you can afford. Debt consolidation, or a debt management plan, provides individuals and families struggling with multiple debts the opportunity to combine, or consolidate, high-interest credit card and unsecured debts into a single, more manageable, payment plan made to a credit counseling agency.
Credit counseling agencies, in turn, distribute those funds to credit card companies. When you enroll in a debt consolidation program, credit counselors typically review your finances, debt amount, and sources of income to determine how much money you can reasonably allocate each month to pay down your debts. Debt relief counselors then create a strategy to help reduce your high interest rate debts and submit proposals on your behalf to creditors requesting the benefits of debt relief. These can include reduction of interest rates, the waiving of late fees and penalties, and generally more favorable and lenient repayment plans. Creditors who understand that you are indeed experiencing a financial hardship will be more likely to agree to debt proposals and also willing to place your account into the structured debt management plan for payment over time until your debt with them is resolved.
To explore your debt relief options, answer a few, simple questions to get your free debt relief estimate and savings analysis.
State Resources for Low-Income Families
While the state of Kentucky does not specifically offer debt grants or programs designed to help consumers with credit card debt reduction, it does provide a variety of programs for individuals and families who are low-income or need a helping hand while experiencing difficult circumstances. For instance, the Temporary Assistance Program provides assistance to needy families with children, helping them get access to food, health care, and other basic necessities. Kentucky also has agencies that can assist with housing concerns and help consumers avoid foreclosure. For more information, go to the state's homepage Benefits section.
Debt Settlement or Debt Negotiation
Settling your debts is another alternative to resolving credit card debts faster, provided that you can accumulate money in a designated "set aside" account so that you will have the funds necessary to extend a settlement offer to creditors.
With debt settlement, it's important to understand that if credit card companies see that you have fallen behind by 60 or 90 days or more and decide eventually to "sell off" your debt as "bad debt" to a third-party debt collector, they may only receive as little as 10 cents on the dollar. So, it stands to reason that credit card companies, in this position, may be willing to accept a reasonable settlement offer made by you or by a debt negotiation company for much less than the full amount owed.
A few additional key factors to be aware of with debt settlement: When consumers default on the terms of credit card agreements in order to set aside monies in a settlement fund, creditors may threaten or take legal action. In addition, money saved through credit card settlements are subject to federal taxation. Finally, debt settlement typically will have a negative impact on personal credit, but not as severe or long lasting as a personal bankruptcy.
Despite the legal and tax implications of debt settlement, it has become an increasingly popular option for consumers who would rather settle debts for as much as they can reasonably afford, rather than default on debts entirely and file for personal bankruptcy.
To review your debt relief options, take a moment to get your free debt relief estimate and savings estimate.