How National Debt Relief Works
When choosing to work with National Debt Relief, it is important to know what to expect from the process. When you first apply, a certified specialist reviews your credit history to ensure your eligibility for the debt settlement program. Once your eligibility is confirmed and you begin working with National Debt Relief, an escrow account at Global Client Solutions that only you can control will be opened in your name. You will then send an agreed-upon monthly deposit to National Debt Relief, to be deposited in your escrow account.
Meanwhile, National Debt Relief will negotiate with creditors on your behalf. They will contact you when they settle a debt and ask you to release the funds from your account to pay for the settlement. Typically, your first settlement will occur within three to six months. While the overall length of the program depends on your individual debt, it generally takes between 24 to 48 months to settle all of your debts.
Best For Tax Debt Relief: Curadebt
While other debt relief companies shy away from tax debts, CuraDebt offers special assistance for consumers who owe back taxes. This program is offered on top of its traditional debt settlement programs that can help consumers become debt-free while paying less than what they owe.
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Debt settlement programs and assistance with back taxes
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Free consultation
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In-person consultations only available in Hollywood, Florida
CuraDebt has been in business since 2000, and it offers a free consultation for consumers interested in its debt relief programs. Like other debt relief companies, CuraDebt also displays an array of debt settlement letters on its website, many of which show consumers who settled debts for as little as 20% of what they owed. Additionally, the company reports that its customers typically pay approximately 20% of their enrolled debt amount in fees over time. There are no monthly administration fees.
Where many other debt relief companies dont touch outstanding tax debts, CuraDebt offers specific assistance for consumers who owe back taxes and need help coming up with a plan while they manage other debts they have. This makes CuraDebt unusual in that it can help consumers who have multiple types of debt including taxes, credit cards, and personal loans.
Read the full CuraDebt review.
A Few Debt Relief Options You Want To Avoid
The three options outlined above are not the only options that consumers can use. There are other ways to find debt relief we just dont recommend them. At Consolidated Credit, we promote a do no harm strategy when it comes to debt relief. In other words, your debt solution should not put you in a worse position than when you started.
Each of the solutions above when used correctly can eliminate your debt without causing credit damage or making your financial situation worse. Other solutions can decrease your credit score or negatively impact your long-term financial plan.
For instance, you can:
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Paying Off Your Debts
You can pay your debts in instalments by setting up:
- a Debt Management Plan which is an agreement with your creditors managed by a financial company
- an Administration Order when youve had a county court judgment or a High Court judgment against you for debts under £5,000
- an Individual Voluntary Arrangement which is managed by an insolvency practitioner
You can also get temporary protection from your creditors through the Breathing Space scheme, while still making repayments. Youll need to apply through a debt advisor.
In Scotland you can arrange a Debt Payment Programme from the Debt Arrangement Scheme.
You may also have the option of reaching an informal agreement with your creditors.
Debt Settlement Can Negatively Affect Your Credit
Undergoing debt settlement will not have the same effects on your credit as filing for bankruptcy, but it can still have a fairly large negative impact. A settled debt will usually have a note describing them as such on your credit report, indicating to potential lenders that you could not meet a previous obligation and may, therefore, be a risky investment. Additionally, if you have not already defaulted on your debts, you will end up doing so during debt settlement, resulting in additional credit impacts.
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How To Get Credit Card Debt Relief & Help From A Trusted Debt Relief Agency
If you need help finding the right credit card debt relief option for your situation, feel free to contact us and speak confidentially with one of our qualified credit counsellors. Our appointments are always free and do not in any way obligate you to use our services to solve your debt problems. A counsellor can review your entire financial situation in a non-judgmental fashion, and help you understand what options are available to you. Feel free to speak with us today. We are here to help you.
Tips And Advice To Find Government Debt Relief And Grants
Are you drowning in Debt? Not sure how to get out of debt?
Do you think that the government is the best place to turn to get out of debt? Did you know that the US government has racked up more than $28 Trillion in debt…that is serious debt. While it is true that there are some limited government debt relief programs, dont count on the government to bail you out.
Does government debt relief exist? If so, what exactly are your options? There are some misconceptions about what the government can do to provide debt relief. In short, the federal government does have assistance programs and grants, but there is no such thing as a straight-forward debt relief program issued by the government where your debts disappear magically.
It is vital to get a grip on your debt situation. In general, any government program will aid those in hardship, although not everyone in financial hardship will qualify for a government debt relief program. It is good to keep in mind that government debt relief is not a solution for many debt problems, especially with unsecured debt, such as credit card debt. However, it is also a good idea to know your rights and what type of help is available.
To understand how the government can help you find the best debt relief solution for your personal situation, learn about:
- Handling debt and tips from the government
- Government debt relief for different types of debt
- Government debt relief and protection against debt collectors and lawsuits
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Talk To Your Creditors
Talking directly with your creditors can be intimidating, but remember, it is in their best interest to help you find a way to pay off your debts. If you are having difficulty making minimum payments on a line of credit or a credit card, it is always worth trying to talk directly to your creditors. Most credit issuers in Canada have programs that can grant you a payment break or lower your minimum payments. Make sure that you fully understand the impact of any agreements you make with your creditors.
Talk To A Financial Professional
A reputable credit counsellor or other financial professional can explain all of your options and help you choose the one that makes the most sense. A first meeting with a credit counsellor, or other financial professional, is confidential, objective, and usually free.
Does this option sound right for you? Tips for finding a trustworthy financial professional.
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Monitor Your Credit For Free
Join the millions using CreditWise from Capital One.
- Even if theyâre nonprofit organizations, credit counselors may charge fees for their services.
- Be sure the credit counselor you choose is a reputable, accredited and certified one you can trust to manage payments on your behalf.
6. Debt Settlement
Debt settlement is when a lender waives a portion of your debt in exchange for you agreeing to pay back the remaining balance. According to the CFPB, debt settlement companies are âusually ⦠for-profit companies that charge a fee for their services.â Youâve probably seen them advertise their services on TV or online.
How it works: As the FTC describes it:
- Debt settlement companies offer to ânegotiate with your creditors to allow you to pay a âsettlementâ to resolve your debtâa lump sum that is less than the full amount that you owe.â
- Debt settlement programs typically ask you to âset aside a specific amount of money every month in savings ⦠and transfer this amount every month into an escrow-like account to accumulate enough savings to pay off any settlement.â
Keep in mind: The CFPB advises consumers to examine their agreement very carefully to understand and prepare for any eventuality. For example:
- âMost debt settlement companies will ask you to stop paying your debts in order to get creditors to negotiate ⦠a settlement.â
- In the meantime, late fees and interest can still accumulate and âcause your original debt to increase.â
7. Bankruptcy
Keeping Up With Credit Card Debt During A Financial Crisis
Reading time: 5 minutes
Many people have relied on their credit cards throughout the Coronavirus/Covid-19 pandemic to help cover mounting bills and other essentials. In times of financial crisis, credit cards can be a vital financial resource. However, spending more than you can reasonably pay back and leaving debt unchecked can hurt your credit history and create bigger financial problems down the line.
If you’ve been using credit cards more than normal during the Covid-19 pandemic and growing your balances, be sure to also follow these strategies for good financial behavior:
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Debt Settlement As An Alternative To Bankruptcy
Government Programs for Debt Relief
Filing for Chapter 7 or Chapter 13 Bankruptcy can plague you with a set of challenges, such as lawsuits, monetary judgments, or garnished wages which you may want to avoid, not to mention the long term impact on your credit score which it may incur. If you want to avoid bankruptcy, debt settlement is a viable and recommended alternative by the Federal Trade Commission. Under debt settlement, a debtor can receive a lump sum agreement or installment through which he or she will pay off debt at a reduced, fractional rate of the total account balance, perhaps at around half, or more or less depending on the debtors situation. Though debtors can hire a firm to help with creating a debt settlement plan, the FTC warns against for-profit firms as they are often out to scam debtors. Debtors can create their own self-managed debt settlement plan or look into free credit counseling agencies.
Managing Debt Collectors And Scammers
The most helpful government debt relief programs cant immediately fix your credit issues, especially if your finances put you in the lower end of the low-income household category.
Even your best intentions to pay off debt probably wont spare you from debt collection, and the scammers it attracts.
You should know your rights with debt collectors and even more importantly you should be on high alert to avoid debt settlement and debt elimination scams.
You may not instantly know them when you see them. But there are indicators when a debt relief service is offering you something it cant deliver:
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Financial Help For Women And Families
- Child Tax Credit A direct benefit of the U.S. governments stimulus program for COVID-19 debt relief. The American Rescue Plan signed into law in March 2021 increased this tax credit from $2,000 to $3,600 for children under six and to $3,000 for children up to 18 years old for families making less than $150,000 per year.
- Single Mother Guide Lists many resources for single mothers and widows as well as statistics on single parenting.
- NWLC The National Womens Law Center monitors laws and policies favoring women and families, and has a Poverty and Income Support section that contains articles and reports about available family support programs, family tax credits and more.
Does Consolidated Credit Adhere To These Guidelines
Yes. Consolidated Credit is a registered 5013 nonprofit organization. We are nationally accredited through the Financial Counseling Association of America . We are also approved by the Department of Justice to provide pre-bankruptcy counseling in our home state of Florida.
Connect with a certified credit counselor to get the help you need to get out of debt.
All articles and educational content on Consolidated Credit are written by and carefully reviewed by certified credit counselors, HUD-certified housing counselors and financial coaches.
Consolidated Credit follows strict sourcing guidelines and only links to reputable sources for information, such as government websites, credit bureaus, nonprofit organizations and reputable news outlets. We take every step possible to ensure all information comes solely from certified financial professionals.
If you feel that any of our content is inaccurate, out-of-date or otherwise questionable, please let us know through the feedback form on this page.
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Are There Any Government Debt Relief Programs
No, there are no government debt relief programs for individuals struggling with debt in general. In fact, government organizations like the Consumer Financial Protection Bureau and Federal Trade Commission warn consumers against using debt relief companies.
That’s because debt relief companies often don’t disclose the risk of their programs. Since these programs usually require you to make monthly repayments which many enrollees already struggle with many people aren’t able to complete them in full. In some cases debt relief clients can face lawsuits for nonpayment and end up filing for bankruptcy.
Debtca Is Canada’s Trusted Source For Debt Relief
At Debt.ca, we understand that people might find themselves surrounded with debt for many reasons including job loss, reduced income, medical expenses, or even the rising costs of raising a family. And when faced with a mountain of consumer debt, it is quite easy to become overwhelmed and to believe that you will never be able to pay off your creditors. The high interest rates associated with consumer debts, late fees for those who are behind on their payments, and much more can seem to conspire against your attempts to become debt free. That is why we want to help all Canadians better understand their debt relief options and save the most money while they get out from under their unsecured loans.Are you struggling with debt or trying to figure out which Canadian debt relief program will help you get out of debt in the quickest amount of time and for the least amount of money? If so, let us show you that you can live a life free of bills and you do have more options than you probably realize. Simply put, if your paying out more money every month than you have coming in, we can get you to a professional who can help. Fill out the form above to get started today!
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Negotiate Lower Rates With Your Creditors
A lower rate means more of each payment you make can go towards the debt instead of accrued interest. This does accelerate repayment, especially if you make larger payments.
Your chances of a successful negotiation increase if:
- Youre not behind on your payments
- Your credit score increased since you opened the account
- Youve been a loyal customer for a number of years
If you are not successful negotiating on your own, then that may be a sign you need the help of professional credit counseling services. Having a team of experienced negotiators on your side with established relationships with creditors can go a long way in making sure you get the results you want.
What Is A Government Debt Relief Program
- There are no government relief programs for credit card debt.
- The phrase government debt relief program applies mainly to IRS and student loan debt.
- Private solutions to too much credit card debt include debt settlement and bankruptcy.
Do government debt relief programs exist? Yes, there are several programs available to people with financial problems who need help. These programs include:
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IRS Fresh Start program
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Student loan disability discharge
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Public service loan forgiveness
If you qualify, these programs can help you get out from under unaffordable debt. However, there are no government debt relief programs for credit card balances.
about credit card debt relief.
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When Can I Get A Government Personal Grant
The government always stand with their citizen, they have just one motto that every citizen will get the best way to live their lives and if they are facing any crisis then the government help them to resolve their problems and come out from their bad time. This government provides grants in different ways. Such as they provide grants to the people for their child care, kids school supplies, to pay their bills.
Even some grant programs focus on paying the hospital bills and provide proper treatment. When you look for government grants you can find lots of grant programs. These grant programs also include long-term investments for example purchase a house and others. Thus, there is a need to find the government grant according to your need and use them.
Many people have a question that what is the time to seek a personal grant? There is no time to seek help because whenever you need help you can look for grants from the government. When you are seeing that you are not capable to pay the bills and handle the expenditures of your house, and you need financial help then you can look for financial grants. The issuer does not expect any return payment, and therefore you will lose only one thing and that is your time and efforts. But when you use them for finding the grant you will be the lucky one and get proper help to pay your bills or pay the debts.
