According to a recent survey by the Pew Charitable Trusts, 70 percentage of customers view debt as compulsory. However, they do not prefer it. On the other hand, 90 percent of customers rely on debt in order to maintain a luxury lifestyle and for this, the debt loan for customers keeps rising.
This survey also makes it clear that household income has raised 28% over the last 13 years. However, the complete cost of living has increased by 30%. Moreover, we are not earning enough money to maintain our expenses.
Fortunately, there are lots of debt relief programs that you can use to reduce your debt. You can perform the task on your own. However, it has always been a good option to hand over the task to a professional debt relief agency. Here, we are going to discuss each and everything about debt relief plans so that you will get a clear idea of it.
Pros of Debt Relief Plans
In case, you are struggling with the financial crisis and unable to decide how to deal with the situation, then debt relief plans can work as a savior for you. In the given section, we have discussed the advantages of debt relief plans.
- Most of the nonprofit organizations provide free credit counseling sessions. However, you need to take extra precautions as some of the organizations are for-profit as well as could require fees.
- The biggest advantages of the debt relief options are that they will deduce the interest rate. Also, it will increase the time period.
- A professional debt relief agency assists consumers to build an affordable budget. Apart from this, they guide them on how to live with that budget. Besides that, they teach the customers about the available debt relief plans and most importantly which option is suitable for their financial condition. Moreover, by leaps and bounds, a licensed debt relief organization raises the financial literacy of the customers.
- In case you work with a reliable debt relief company, it is quite possible that your debt amount can be reduced up to 50 %.
- If you have not settled your debt amount within 180 days, creditors might hand over the task to a collection agency. They might continuously be calling you and mentally harass you. On the other hand, if you take help from a professional debt relief agency, they will surely assist you to overcome the situation.
Some of the Debt Relief Programs Include :
- Debt Management Plan
- Debt Consolidation
- Debt Settlement
Let’s get deeper and know more about these options.
Debt Management Plan
Most of the credit counselors prefer this solution. The primary goal of this plan is to deduce the interest rate. However, under this plan, you have to repay the full debt amount within the given time. With this plan, you can effectively manage the unsecured debts.
Advantages
- By using this plan, you can more securely handle your financial condition.
- The debt management plan helps you to raise your credit score.
- Also, you will get a clear it about money management.
Debt Consolidation
The debt consolidation plan helps you to deduce the interest rate and prepare one monthly manageable payment. In short, your multiple debt amounts are turned into one single amount.
Benefits
- In case, you select a credit union or bank to get a debt consolidation loan, then the competition between them can deduce the interest rate. Sometimes, this can lead to a zero interest rate.
- In case, you hire a professional debt-consolidation expert, they can find the lowest monthly payment.
Debt Settlement
The debt settlement plan is basically for the customers who have a very poor credit score.
Advantages
- The biggest advantage of the debt settlement plan is that the customers have to pay 60 to 80 % of the original debt amount. However, in some rare cases, the amount can be decreased by up to 50%.
- Though you can try the plan on your own, however, it is always better to work with a certified debt settlement expert.
Conclusion
These are the plans that you can try to reduce your debt amount. Though you can perform all these activities on your own, if you give a chance to the DUI Lawyers west palm Beach, they can do it in an effective way. Also, at the same time, if you are struggling with DUI arrest, they are always ready to hold your hand.
