Debt Relief Service for Those In Need (2024)

Having multiple forms of debt relief can be overwhelming to grasp, especially for those who deal with debt. Not all iterations of debt relief service will yield the best results for everyone. In order to know which form of debt relief will work for you, it’s best to research your options thoroughly. Here we will discuss each form of debt relief service available in levels of severity. Know what you should know before you commit to a certain level of debt relief.

Debt Relief Service in Order of Severity

Credit Counseling

If you have debt but you don’t know what to do to eliminate it, a simple bout of credit counseling could go a long way. Credit counseling can help to provide advice on dealing with debt and bolstering your finances. Credit counseling is free and is not a commitment based endeavor. A credit counselor can analyze your debt, your income and your financial ability. .

After making the necessary reads on your finances, your counselor can provide a strategy to help lessen or eliminate debt. Afterwards, your counselor can advise you on how best to utilize your income. This is the best way to experience a debt relief service without committing too much to the process.

Debt Consolidation

The next level of debt relief deals with consolidation loans. If you have multiple debts, consolidation can help to organize your financial obligations. Having your debts combined will help to make your payment schedule easier to manage. In many instances, multiple debts come with different payment deadlines and varying interest rates.

Getting a debt consolidation loan can allow you to pay off the debts you have immediately. Afterwards, you would only have one debt left. With careful planning, you can whittle down your consolidation loan without incurring any extra debt. The only obstacle that you may face is the ability to qualify

Debt Settlement

Debt can get so far out of hand that it can’t be handled without help from someone. The process of debt settlement has you negotiate your debt down to a more manageable level. There are multiple ways to achieve debt settlement. You can settle your debt on your own or with the help of a third party consolidation team. This can be of more use to you should you be unable to pay your debts without assistance. Using a debt settlement company would require you to pay for their services (once completed), but would have you rely on the company's negotiators and their existing relationships with your credit providers.

You can also attempt to settle your debts on your own, saving you the cost of hiring a company. However, trying to negotiate your debts alone might not get you the desired settlement. Knowing what your financial ability is can help you figure out the best course of action.

Bankruptcy

Bankruptcy is a debt relief service that helps people in extreme debt situations. If you have absolutely no other way to handle your debts, Bankruptcy has the ability to completely eradicate your unsecured debt. If you file for a chapter 7 bankruptcy, many of your unsecured debts would be taken care of. While a bankruptcy would eliminate your debt, it would also mar your credit record for up to ten years. This can seriously hinder your ability to apply for new credit or be considered for credit related products.

If you have no other options, then bankruptcy should be considered. Bankruptcy can also prevent other negative things from happening, such as wage garnishments. If you’re facing actions from your credit providers in regards to your debts, bankruptcy can help by putting a stop to them. Consult with lawyers in order to know more about bankruptcy (should you choose to use it).