One reasons this type of debt gets out of control so easily is because they have high interest rates. This can make the payoff time seem never ending, especially if you have multiple cards maxed out. They are also, often times, used to pay for things when someone doesn't have the money on hand or at their disposal.
No matter what reason someone's in need of getting relief from their credit cards, their need is real. Luckily, the programs that can help are plentiful. Let walk through some important factors to consider when searching for help.
Are You in Need of a Relief Program?
Like we said earlier, credit card relief programs have been around for many years. These programs have the ability to get someone back on track financially while avoiding bankruptcy. This is a great benefit for those who find themselves up-side-down financially because of unforeseen expenses. But, for starters, you still have to ask yourself if you're really in need of this type of service.
Ask yourself these questions:
If you answered yes to any of the above questions, there's a good chance your a good candidate for credit card relief.
How Much Will a Credit Card Relief Program Save Me?
The amount you save will vary based on a few different factors:
1) The total amount you owe.
2) How soon you enroll your debt.
3) How much of a monthly payment you can afford.
4) How good the credit card relief company is at settling debts.
All of the above factors play a role on how much relief you will gain. Remember, credit card relief programs are only as good as the companies offering them. Don't sell yourself short by not checking around. Do you homework on any company you're considering. Taking your time before you enroll with determine how much you save and how quickly you get out of debt.
Most States Allow These Services
Different states have different restrictions when it comes to programs that help relieve credit card debt. Some states require that their residents deal with a company local to their state. Fortunately, most states don't have this restriction. The states that require that the company you deal with be local we refer to as red states. Without a local presence a debt relief company cannot offer a credit card relief program there. States that do not have this restriction, we refer to as green states. For this reason our company offer's services in 36 of the 50 states.
The 36 States We Offer Credit Card Relief Programs:
How it Works
Designed To Be a Win, Win
As you can see from above this type of program is designed to be a win for the borrower as well as a win for the creditor. This is because by using an experienced company to negotiate your debts in a streamlined and bulk fashion you save more and are able to make only one payment monthly. You are able to spread the settlement period over years instead of just a few months. The creditor regains some of the principle amount with much less cost and man-power. This saves the creditors time and money.
Avoid Needing Credit Relief by Using Credit Responsibly
Most people know the ideal way to use credit is for credit building purposes. Unfortunately, credit cards also need to be used as a financial crutch sometimes. This be the case when income drops or expenses rise. It can be for any number of reasons like loss of a job or a medical emergency. No matter what the reason is, credit card bills can quickly become unmanageable. It's a tough and stressful situation when this happens.
When you face an income loss or unforeseen expenses all you can do is cover financial obligations by the only means available. Credit card relief programs are designed for scenarios just like this. Most people who enroll in a program didn't get there because of being irresponsible. Most found themselves in this situation because of uncontrollable circumstances. Don't misunderstand, there are definitely people who become financially up-side-down from being careless with credit. They are the exception, though, not the rule of the people we deal with.
No matter what reason someone is up-side-down with credit cards, these programs are designed to help. They use the power of numbers and streamlined servicing and electronic negotiations to get you the lowest payoff. Credit card companies will negotiate a settlement because they would rather get a percentage of the debt they're owed rather than get nothing at all. And nothing at all is what they could get if they force a debtor into bankruptcy.
We Also Offer Private Student Loan Relief
Just like credit card debt has risen, Private student loan debt has risen too. The main culprit here is how fast the price of education has risen. Sallie Mae loan forgiveness has led the way of borrower's who need relief.
Similar to programs that help lower credit card debt, private student loans are best dealt with by using a similar program. The reason is because private student loans are hard to bankrupt out from under.
Covering a Variety of Debt Types
Most debt relief companies enroll other unsecured debts too, not just credit cards. Unsecured bank loans, medical debt, private student loans and business debt can usually be enrolled as well. Some of these debt types, however, cannot be enrolled together. Private student loans, for example, can't be enrolled with credit cards. Private student loans typically have to be enrolled by themselves. On the contrary, unsecured bank loans can be included in the same program as credit cards. These rules and restrictions can be fully explained to you by whichever debt help company you choose.
Can You Afford Payments Plus a Little Extra?
If you answered yes to this question then enrolling in a credit relief program probably is not your best option. A debt snowball is a way to save a lot off the interest amount you will pay over the course of paying off your credit cards. Read below the steps of how using this method can save you money. It's a good consideration if you're not a candidate for credit card relief.
Lower Debt Yourself With the Debt Snowball
- 1) Pay a little extra toward your lowest balance debt
- 2) Once you have paid off your lowest balance debt, apply what you were paying on that debt to your next lowest balance
- 3) Once that debt is paid off, apply what you were paying toward the two previous debts to the next lowest balance debt
- 4) Repeat these steps until all of your debts are paid off