Sunday, May 19, 2024
HomeDebtHow To Get Debt Relief

How To Get Debt Relief

Qualifying For The Debt Reduction Program:

How to Get Help and Resolve Your Debt With Freedom Debt Relief Featuring Sean Fox
  • To qualify, you must be able to pay both your current child support obligation AND an ongoing debt payment. If you dont owe current support, only the ability to make the debt payment is considered.

  • Your current income, assets, and cost of living are all taken into account, as is the total size and makeup of your family.

  • As a general rule, if it is determined that your situation makes it unlikely that you could pay off the total debt within twelve months, you may qualify for the debt reduction program.

  • EVERY case is different, and these are very general items for review. Other details of your case may also affect your eligibility.

Common Signs Of Debt Trouble

The most common sign of debt trouble is not being able to afford the monthly payments. Or, if you can barely stay afloat financially after making the minimum monthly payments on your credit cards, youre likely overextended and will spend several years digging yourself out of a debt hole unless you seek other relief options.

How Does Debt Relief Work

Debt relief refers to a variety of solutions designed to help make your payments more affordable so that you can ultimately become debt-free. It might include a replacement loan that lowers your interest rate or modifies your repayment term, or you may even see a reduction of the total amount you owe. Specific modifications vary based on the solution you opt for.

If you decide on a debt solution thats right for you, youll want to make sure you make any payments according to the terms of the new agreement of your debt relief plan.

Also Check: Can You Pay A Chapter 13 Bankruptcy Off Early

Are There Government Credit Card Debt Relief Programs

Currently, there are no government-sponsored or government-backed programs that provide credit card debt relief to consumers. For example, unlike what you see with federal student loans, you cannot apply to have credit card debt forgiven without penalties. No program allows you to refinance or modify the terms of your credit card agreement like there were with mortgages during the Great Recession.

What the government does provide is oversight and regulation of debt relief services:

  • The passed during President Obamas administration prevents debt settlement companies from charging upfront fees. These companies may not charge fees until a debt is successfully settled on the consumers behalf.
  • The Uniform Debt Management Services Act offers guidance to state governments on how to regulate credit counseling and debt settlement services. Under this agreement, many states:
  • Only allow registered nonprofit credit counseling organizations to provide debt management services
  • Cap fees for debt management services
  • Require both credit counseling and debt settlement companies to be accredited by a nationally-recognized association, which maintains strict ethical standards.
  • Require credit counseling agencies and debt settlement companies to provide financial education as well as debt relief services.
  • The Department of Justice also authorizes certain nonprofit credit counseling organizations to provide pre-bankruptcy counseling and debtor education.
  • Renegotiate Your Credit Card Bill

    Debt Relief Options: Explore Your Options &  Find Your Debt Reduction Plan

    Some credit card companies may be flexible when it comes to your payment terms. They may be willing to negotiate your interest rate especially if you have a history of on-time payments on the account offer you a hardship payment plan, or reduce your minimum payment.

    If youre considering bankruptcy, you may want to let them know. Sharing this information could help you negotiate a lump-sum payment, since settling is more attractive to creditors than being forced to forgive your full balance in a bankruptcy.

    You May Like: How Often Can You File Bankruptcy In Indiana

    Manage Debt On Your Own Or With A Credit Counseling Agency

    It is possible to manage your debt on your own. This option can be difficult to navigate and requires self-discipline and organization. Luckily, strategies such as the debt snowball and the debt avalanche can help.

    There are also little things you can do to make your debt easier to manage, including sticking to a budget, starting an emergency savings account and taking measures to reduce your monthly bills. To make this process easier, it could be beneficial to work with a . These agencies take a deep look at your financial situation and provide recommendations and strategies for moving forward.

    Get Relief From Your Debts

    If youre in debt and your credit score keeps dropping, dont despair debt relief options for bad credit can help.

    Unless you do it yourself, you may have to pay one-time or monthly fees to a debt relief company to help you get out of debt. Look for companies that are upfront about any fees, offer advice on the best ways to get out of debt, and specialize in helping people who have bad credit.

    Other solutions include debt consolidation loans, home equity loans, credit counseling, a debt management plan, and renegotiating the terms of your debt yourself. You can accomplish all of these, even if you have poor credit, and eventually be debt-free with an improved credit score.

    Don’t Miss: How To Claim Bankruptcy In Illinois

    No Cost Steps To Reduce Debt

    Get control of your finances with a budget and expense-cutting. Its not glamorous, but its a required first step. Put aside money to pay your bills on time. Cut expenses that are not necessary. No debt reduction solution will work without taking this step and you may see an improvement in your credit score as you make payments on time.

    Contact your bank or credit union. If you have a checking or savings account, you have a relationship with a bank or credit union. They may be willing to offer a debt consolidation loan or a personal loan. Make sure that the interest is low enough to make sense. If you dont belong to a credit union, consider joining one. They are nonprofit, so have lower fees and interest.

    Borrow from family or friends. This can be a very good option or a very bad one, depending on your circumstances. A family member or friend may charge no interest and be flexible about repayment. On the other hand, emotional and relationship issues that wont surface when you borrow from a traditional lender may cause issues you didnt anticipate. If you choose this option, put the terms in writing, stick to the terms and dont miss payments.

    How To Get Debt Relief In Idaho

    How to Get Out of Debt Without Hurting Your Credit Score | Freedom Debt Relief

    Dena Standley | July 21, 2022

    Summary: If you’re struggling with debt in Idaho, SoloSuit can help you find the relief you need.

    Navient recently settled with Idaho to forgive close to $4 million in debt. What a relief for the over 170 borrowers who will benefit from this arrangement after court approval! For most consumers, debt forgiveness is a fairy tale.

    Struggling with debt isn’t new to many American consumers, especially with the rise in the cost of living. In recent years, Idaho has seen a surge in housing costs . The added expenses have resulted in an overreliance on credit cards. And these debts quickly add up and become unmanageable.

    As of May 2022, the average cardholder in Idaho has a $5,213 credit card debt. It would take years to clear that amount by making minimum repayments. If you have overwhelming unsecured debt, you may still have a way out. Some of these options are DIY, while some require hiring debt relief professionals.

    Read Also: Can You Keep Your Home If You File Bankruptcy

    How Do Debt Settlement Companies Work

    A debt relief company is a business that charges clients a fee for negotiating debt settlement on their behalf with credit card companies and other creditors. It usually provides other debt relief services, as well. The objective of a credit settlement service is to get creditors to settle for a portion of the debt balance, making it easier for you to repay your personal debt and other types of debt.

    After you sign up for debt settlement and before negotiating with your creditor, the debt settlement company will typically set up a savings account for you. Then, the company will instruct you to stop your debt payments to the creditor and make specific monthly payments into your savings account. When the balance in your savings account equals the portion of your debt you want to repay, the debt settlement company will approach your creditor as your representative.

    The debt relief company will ask your creditor to settle for the one-off partial repayment of your debt obligation, as an alternative to receiving no payment should you file for bankruptcy. Then, the debt relief company will withdraw the funds from your savings account and use it to pay your debt obligation.

    Other services that debt relief companies offer include debt counseling, debt management plans, and bankruptcy filing assistance. We discuss these additional credit services in more detail below.

    Related Content:

    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.

    Recommended Reading: Do You Lose Your House When Filing Bankruptcy

    A Note From The Founder

    We hope this website provides you with valuable information to help you better understand all the options available to you when it comes to planning for monthly expenses, budgeting, and taking control of bills.

    We believe that every individual and family has the responsibility of taking care of financial obligations and living up to terms of agreements with lenders.

    However, we also understand that “life happens” and there are many times when unforeseen circumstances can lead to a financial shortfall each month. When this gets to the point where one feels compelled to apply for a costly loan, or even consider bankruptcy — it’s wise to learn about all available options for getting assistance.

    If you’re like many people with unmanageable bills, you may not be aware of all the bill reduction options available, so we encourage you to do your due diligence, be an informed consumer, and always consider consulting with a financial management professional regarding how any bill assistance program would affect personal finances.

    Finally, while it’s important to know that there are management and counseling programs to alleviate the negative impact of burdensome bills, we also encourage all visitors to take advantage of the self-help tools, financial fitness, and educational resources that are offered through this site free to all visitors.

    Here’s to your financial freedom!

    Walter E. Burch

    Use Bright To Manage Your Card Debts

    Free Debt Advice

    Your BrightPlan can manage your card payments for you. Bright will analyze your finances and manage your card payments for you, always on time and optimized for lower interest payments.

    If you donât have it yet, download the Bright app from the App Store or . Connect your checking account and your cards, set a monthly goal and let Bright get to work.

    Read Also: How To File Bankruptcy Chapter 13

    No Guarantee Of Settlement

    The most obvious risk involved is that there is no guarantee that National Debt Relief or any other debt relief company will be able to settle your debt.

    People are typically advised to stop making payments to creditors once they start working with a debt relief company. A lack of a final settlement will lead to higher interest rates and late fees. This could leave you with more debt than you started with. Lack of settlement also leaves you vulnerable to potential lawsuits from creditors.

    How To Verify That A Debt Relief Company Is Legitimate

    Unfortunately, plenty of bad actors in the debt relief industry are looking to take advantage of people with credit-related difficulties. Warning signs that you are dealing with a scammer include:

    • No American Fair Credit Council accreditation
    • A poor Better Business Bureau rating
    • 100% credit settlement guarantees
    • Unrealistic guarantees that they will stop collection attempts by creditors
    • Guarantees of settling debts within unrealistic periods

    All the companies we included in this review guide are legitimate, and have excellent track records as debt relief providers. When evaluating other companies, be on the lookout for the above warning signs, and dont believe extraordinary claims.

    Don’t Miss: How Many Times Have Donald Trump Filed Bankruptcy

    Implement A Debt Reduction Plan

    You basically strategically arrange your bills and make the largest payments possible on one debt at a time. You find as much cash flow as possible in your budget by eliminating expenses, then target each debt successively.

    We offer resources that describe how to implement an effective debt reduction plan.

    Accredited Debt Relief: Best For Credit Card Debt

    How Does the Freedom Debt Relief Program Work? | Freedom Debt Relief

    Accredited Debt Relief is one of the best debt settlement companies, and it may reduce your total debt by up to 50%. If you are looking to avoid filing for bankruptcy while becoming debt-free in 12 to 24 months, this debt settlement company may be a viable option.

    Company Background

    With over 140,000 active clients and an A+ rating with the Better Business Bureau, Accredited Debt Relief is one of the leading debt review companies in the United States. This San Diego-based debt settlement company has American Fair Credit Council accreditation and has been providing professional debt solutions to Americans since 2011.

    Services Offered

    The services Accredited Debt Relief offers are available to anyone with a minimum of $7,500 in total enrolled debt. However, you will derive optimal benefit from this debt-management program if you have more than $10,000 in unpaid and unsecured debt.

    Accredited Debt Relief offers a wide range of debt solutions, including debt settlement, consolidation loans, credit counseling, and bankruptcy. The debt settlement solutions aim to reduce most types of unsecured debt, including credit card debt, personal loans, medical bills, and business debt. This debt settlement service doesnt cover tax debts, government student loans, and mortgages.

    How the Process Works

    Accredited Debt Relief will negotiate a debt settlement with the debt collectors when you have sufficient funds in your escrow account.

    Unique features Accredited Debt Relief offers include:

    You May Like: When Can You Refinance After Bankruptcy

    Debt Counseling Is A Great Free Option

    If you’re drowning in debt, you may want to consider debt counseling. Debt counseling is a process of working with a credit counselor to create a budget and develop financial skills.

    Pros and Cons of Debt Counseling


    It can help you get out of debt

    It may be a lengthy process

    It can improve your financial situation

    There may be a fee

    Debt counseling aims to help you get out of debt and improve your financial situation.

    Public Service Employees Affected By Phoenix Payroll System Issues

    If you believe that the penalties or interest assessed by the Canada Revenue Agency for your 2016, 2017 or 2018 tax year are a direct result of Phoenix payroll system errors, you can submit a claim under the Phoenix Claims Process administered by the Treasury Board of Canada Secretariat. Each claim will be considered on its individual merits and settled based on valid receipts and other supporting documentation.

    If you are not reimbursed through the Phoenix Claims Process for the penalties or interest assessed by the CRA, you can submit a request for review under the taxpayer relief provisions. Go to Cancel or waive penalties or interest for more information. Be sure to include the decision letter from your department or agency and any relevant documents when submitting your request.

    For more information on the tax implications of Phoenix payroll issues, go to Frequently Asked Questions.

    The Canada Revenue Agency administers legislation that gives the Minister of National Revenue discretion to:

    • cancel or waive penalties or interest
    • accept certain late, amended, or revoked income tax elections
    • issue a refund or make an adjustment to refund or reduce tax payable beyond the normal three-year period for an individual, a graduated rate estate, and for certain tax years, a testamentary trust

    This legislation is commonly called the taxpayer relief provisions.

    Read Also: How To Remove Bankruptcy Accounts From Credit Report

    Texas Debt Collection Laws Can Protect You

    Along with the Federal Debt Collection Practices Act , which protects consumers like you from abusive debt collection practices, Texas also has debt collection laws in place to shield you from unfair debt collection tactics.

    The statute of limitations is the time period that a debt collector has to sue someone for a debt. So, if the statute of limitations on a debt is passed, you cannot be taken to court over it. This law keeps consumers safe from unfair prosecution of old debts.

    Before you make any payments to a debt collector, which would restart the clock on the statute of limitations, you should figure out the statutes of limitations for different types of debt in Texas:

    Texas Statute of Limitations

    Source: Findlaw

    How Does Debt Settlement Work

    How Does a Debt Relief Program Work?

    Debt settlement programs generally negotiate with your creditors on your behalf to pay off your debt at a lower amount than the original principal owed. The goal here is usually to convince creditors to forgive a significant amount of your total debt. As part of the process, the debt settlement company generally asks that you stop paying your creditors so that they can more easily negotiate.

    The debt settlement company usually requires you to put aside a specific amount of money each month for a particular amount of timeoften 24 months or moreinto a specific savings account. This money is used to pay the settled amounts.

    Don’t Miss: What Should My Debt To Income Ratio Be


    The Us Debt Clock

    Who Owns Our National Debt

    What Does Debt Mean

    What Is The Debt Ratio

    Popular Articles