debt relief

Debt Settlement Programs – Avoid Paying Upfront Fees If You Can

What is debt relief? Debt relief can mean a few different things. For example, you may be a person who has run up several credit card bills and is looking for a way to either reduce those bills, lower your monthly payments, stop the interest charges, etc. More often than not, people don’t really understand how credit cards work, so they end up getting deeper into debt. This kind of debt may qualify under the umbrella of debt relief.

How does debt relief may help you? If you owe more than 10k dollars to any one creditor, you are probably eligible for debt relief. But just because you qualify does not mean that you have to get it. You first need to determine what the exact amount owed is, how much of that amount you can afford to pay, and what the interest rate is on those debts. After you have all of this information, you may still need to consult with an expert to make sure that you have followed the proper procedures. Otherwise, your attorney may be able to help you in negotiating for a debt relief.

How are debts measured? Debt relief is often measured by the amount of money that creditors are willing to let you pay off. If the creditors are more than willing to negotiate, you can usually get credit card companies to eliminate annual fees, payment penalties and a lot of accumulated interest. Also, if creditors are unwilling to eliminate some of your late fees, you can usually get credit card companies to eliminate the same. You should always remember that it is only in serious situations that creditors will agree to such measures. If you simply default on your debts, you will find that they won’t be as willing to negotiate.

Do I have to tell what debt relief services I have? You must tell your creditors what debt relief services you are using. This includes all credit card companies, but especially those to whom you owe a considerable amount of money. Even if you don’t owe them much money, you must tell them. Otherwise, your creditors may decide to pass the debt collection costs on to you. This makes it necessary for you to use one or more of the debt relief services out there.

What is a debt relief agency? A debt relief agency is an agency designed to negotiate with creditors. In order for a debt relief agency to be effective, it must be able to obtain an interest rate that is at least 5% lower than the rate of interest that is being charged to you currently. A debt relief agency can also obtain a restructuring of your outstanding principal amount to a much lower amount and allow you to repay it over a longer period of time.

Is my credit score affected by a bankruptcy? No, a bankruptcy will not affect your credit score. However, the debt relief options that are available through a legitimate debt relief service may cause your credit score to drop significantly. This will take some time to recover from, but is usually fairly minimal. So, if you have filed for bankruptcy and are struggling to pay off your debts, you may wish to reconsider.

How are debt relief programs set up? Debt relief programs are set up so that the debt settlement company talks directly with your creditors. The settlement company represents you and your best interests. In most cases, the settlement company will work in conjunction with your credit card companies. This means that the creditors will be much more likely to work with you.

Can I avoid paying upfront fees? It is absolutely possible to avoid paying upfront fees with a debt settlement program. Some debt relief programs will not require you to pay anything until you have negotiated a settlement. Others may charge you a small set up fee when you sign. For the most part, the best debt relief services will have no set up fees. This makes it very easy for you to choose the best service with no upfront fees.