Debt Relief Companies:
A debt consolidation company works on your behalf to lower and eliminate your debt with your creditors. Debt consolidation can make a lot of sense for people with a high level of debt or paying a lot of bills. In these tough economic times, many Americans are faced with significant credit card debt and are looking for help reducing their monthly payments. Debt consolidation is often used in this situation and helps consumers simplify their budgets.
Debt Consolidation Loans:
The basic premise behind debt consolidation is to trade all of your debts for a single new one at a lower interest rate. Debt Consolidation Loans make it possible to pay off your old loans with higher rates with money from the new loan at a lower rate. In many cases, people trade in a credit card rate of 24% into a new loan rate of just 1.4%. It also consolidates all of that information into making it easier to track your debt repayment progress.
2. Which Is The Best Debt Relief Option For You?
0% Interest Credit Cards:
The average American household has over $17,000 in credit card debt alone. As we mentioned, earlier many people are paying upwards of 24% interest. If you have reasonably good credit, there are plenty of credit cards out there offering zero percent interest. Apply today, and you’ll see how quickly you’ll be able to pay off your credit card in no time.
Filing for Bankruptcy
In the past, many people looked upon bankruptcy as an adverse event. However, using bankruptcy wisely may help you lower your debt, and in no time at all, you will be back in a much stronger financial position. But, before making such a move, learn the facts behind this popular form of debt relief.
- Chapter 13 allows people with a steady income to keep their property. This bankruptcy plan allows filers to keep a mortgaged house or car they might otherwise lose in the bankruptcy process.
- Chapter 7 is known as straight Bankruptcy. It involves liquidating all assets not exempt under federal or state law.
Negotiate Back Taxes With The IRS
The IRS offers several different programs to help you get back on your feet and reduce or eliminate your tax debt. Over 1 million people have used these programs to settle their tax debt for less than they owe.
