Do You Need to Payoff Debts Faster?
Many consumers in Kentucky and across the country find themselves engulfed in credit card debt that has become unmanageable. Symptoms of out of control debt are high interest rates, minimum payments that are harder and harder to make each month, or even using credit cards to pay for some of the essentials in life - such as gas, food, or medicine. While many individuals and families struggle with credit card and other unsecured debts from time to time, when it becomes more and more difficult to payoff credit cards or pay down debts, what begins as a temporary situation can easily reach a crisis level and become a way of life.
If you need to payoff debts or get out of debt faster, find out if help is available through a structured debt relief plan coordinated through a BBB-accredited debt relief provider. Answer a few simple questions online to Request Your Free Debt Evaluation and Savings Estimate.
Payoff Debts Through a Debt Consolidation Plan
One proven way to pay down or payoff credit card debts on an accelerated schedule is debt consolidation, or a debt management plan (DMP), coordinated by a credit counselor or debt counselor. The goal of debt consolidation is to combine or "consolidate" all of one's credit cards and other unsecured debts into a single, more convenient, more manageable payment each month. This payment is made to the debt consolidator who then distributes the payments on time month after month to creditors until debts are resolved.
What Are the 1-2-3 Steps to a Debt Management Plan?
How are debt management plans created? Ideally, it starts with a free consultation or free debt evaluation with an accredited debt relief provider. The credit or debt counselor will get the details necessary to verify the amount of credit cards and other unsecured debts. Then, the debt specialist will find out how much in monthly income can reasonably be allocated to pay down debts month after month. Then, with this information in hand, the debt relief specialist will create a personalized debt relief plan and make proposals to each creditor, requesting that they agree to assign their debt to the plan. Included in this plan are the benefits of debt relief that the creditor must first agree to before the plan can be put in place. These benefits are important to understand because they are vital to the success of the program:
- Lower, More Affordable Monthly Payments
- A Reduction in Interest Rates
- A Waiving of Late Fees and Penalties
- A Consolidation or combining of all unsecured debts into a single, more manageable, monthly payment
- The above benefits of debt relief which must first be approved by creditors can save consumers a substantial amount of money be the key to helping consumers get out of debt in less time if credit cards terms included the higher interest rates and only minimum payments were made month after month.
If you need to payoff debts or get out of debt on an accelerated timetable through the benefits of lower interest rates, find out if help is available through a structured debt relief plan from a BBB-accredited debt provider. Get your free debt evaluation and savings estimate.
The reason that debt management plans (DMPs) coordinated through a debt counselor can be so powerful and effective in resolving debts is quite simple: When consumers acknowledge that they have a spiraling debt problem and agree to reach out for help, they must first agree to stop using credit cards. By "freezing" their debt level, essentially half of the problem is solved. Then, existing principal amount of debt is paid off month after month on time, and hopefully, at a significantly reduced interest rate. That means more of a consumer's payment each month goes to attack the principal amount of debt until the debt is completely resolved and the debt-free day is celebrated!
Debt Relief is Simple Math - Does It Work?
If debt consolidation or debt management plans (DMPs) are so basic and "simple" to grasp, are they truly effective and do they work to help consumers get out of debt? The answer is "yes," if consumers who are enrolled in the plan simply maintain the discipline necessary to set aside the funds needed each month so the debt services provider will be able to distribute payments month after month to creditors. However, it's a fact of life that many people who get into serious debt often find themselves in that money crisis in the first place because they don't practice good budgeting and spending habits. So, if those same habits continue, no matter how effective debt management programs are and how much money and stress they can save - it is also "simple" logic that says that people who are not diligent in staying with the plan will not be successful.
The good news is, debt management plans have saved thousands of dollars and been a lifesaver for many individuals and families who simply decide it's time to put the cycle of debt behind them and do what's necessary to change spending habits and regain control of their financial future.
To learn more about your debt relief options and how a debt consolidation program coordinated by a BBB-accredited provider can help, answer a few simple questions and Request Your Free Debt Analysis and Savings Estimate.
Will Debt Settlement or Debt Negotiation Help?
For individuals and families facing a serious high-balance credit card debt crisis, debt settlement or debt negotiation may be a viable option to filing for personal bankruptcy. Debt settlement normally involves the process whereby consumers in financial distress stop paying high interest credit card minimums and "set aside" those funds each month in order to accumulate a "lump sum" amount that can later be used to extend a debt settlement offer, through a debt negotiator, to a credit card company. It stands to reason that a credit card company, facing the prospects of possibly "selling off" bad debt for as little as 10 cents on the dollar might be willing to accept a negotiated settlement offer from a consumer truly experiencing a financial hardship. While debt settlement can save a substantial amount of money and it can be a positive alternative to bankruptcy, it is an aggressive debt relief option whose drawbacks should be recognized from the outset:
Consumers should understand that when they stop paying cards according to the terms of their agreements, creditors can threaten or take legal action. In addition, money that is saved by settling for substantially less is subject to taxation. Finally, debt settlement will normally have a negative impact on personal credit, but not as serious or long lasting an impact as personal bankruptcy.
If you are struggling with credit cards and other unsecured debts and in need of debt relief assistance, learn more about your debt relief options and get a free debt relief analysis and savings estimate at no obligation.
State Programs for Low-Income Families
While debt relief programs help many Americans during times of financial hardship, others may need more immediate relief, such as help paying for utilities, rent or even buying groceries. The state of Kentucky has a variety of financial assistance programs available, such as the Food Benefits/EBT, Kentucky Children's Health Insurance Program (KCHIP), and the Low Income Home Energy Assistance Program. To find out more, go to the state's homepage Benefits section.
Get Debt Relief and Get Your Life Back
If you are truly overwhelmed with credit cards and other unsecured debts, you can breathe a little easier because help is available. Keep in mind that because every individual's debt situation is unique, it's wise to compare and contrast all of your debt relief options, do your due diligence, and take the time necessary to review all your options. Gain a clear understanding of the debt relief program or plan you are evaluating, the BBB accreditation or standing of the debt provider, how much you could save, and how long it will likely take for you to realize those savings. Debt relief can and has helped many individuals and families get out of debt faster, save a substantial amount of money, and put the cycle of debt behind them - but debt relief does not make debts magically go away. It is a proven plan that can put you on the path to financial freedom and that fact alone can not only save thousands of dollars but years and years of stress and discord.
If you are a resident of Kentucky struggling with credit cards and other unsecured debts and in need of debt relief assistance, learn more about your debt relief options and get a free debt relief analysis and savings estimate at no obligation.