Debt Relief Options - New York
In New York and across all 50 states, credit card debt has become an unfortunate part of life which has caused many to investigate their debt relief options. Residents and families nationwide are certainly feeling the pressures of a tight economy, with some even using credit cards to pay for essentials like food, utilities, or medical expenses - resulting in a rise of credit card debts. If you are also overwhelmed with credit card and unsecured debts and need a proven way to pay them off, you might be interested in exploring your debt relief options.
Debt relief is available in many forms, including debt consolidation, debt settlement, or even bankruptcy. Debt consolidation, or a debt management plan (DMP), combines a consumer's unsecured and credit card debts into one, more manageable, and more structured payment made to a credit counseling agency. On the other hand, debt settlement involves negotiating with creditors for less than what you actually owe. Both of these options have been steadily gaining acceptance among consumers and have become popular alternatives to bankruptcy - which severely impacts one's credit rating, particularly those who had good or excellent credit prior to declaring bankruptcy.
If you want to find out how debt relief can assist you with debt reduction, request a free debt relief analysis and savings estimate from NewYorkDebtRelief.org.
Debt Consolidation: What It Can Do For You
Many consumers who seek debt relief may find debt consolidation through credit counseling preferable if they like the idea of having one, more manageable, and more affordable payment - versus having multiple, high-interest credit card debts to deal with every month. Facilitated by credit counselors, debt consolidation or debt management typically begins with a review of your outstanding financial obligations as well as the amount of money that you can reasonably allocate to pay off your debts.
Following a review of your finances, credit counselors typically send proposals to your individual creditors requesting more affordable payment terms - such as reduced interest rates or waiver of late fees and other penalties. Those creditors who accept the proposals are then placed into the debt management plan. The services they provide you, the consumer, are focused on the idea that with a more structured and more lenient payment plan, you can pay off your debts at an accelerated pace. Many consumers, particularly those who may need help with sticking to budgets and organization can typically benefit from a more structured and simplified payment plan.
To find out how consolidating your debts can potentially lead to savings, answer a few, simple questions and get a free debt relief estimate and savings analysis.
Debt Settlement Alternative: Pros and Cons
Debt settlement as a form of debt relief is fundamentally a different approach than debt consolidation through credit counseling. With credit counseling, you are paying the entire amount of your debts; with settlement, you are hoping to settle, or negotiate, with creditors for substantially less than what you owe. Many credit card companies view debt settlement as a viable alternative to selling off "bad debt" to third-party debt collectors who often pay them as little as 10 cents on the dollar.
For many consumers, debt settlement is a smart financial move, but like other debt relief options, it also has potential drawbacks: When you enroll in a debt settlement program, for instance, you will be typically advised to stop paying your credit cards and start accumulating funds over a certain period of time that you can later use to make a reasonable settlement offer. In this scenario, when you stop paying credit card companies, you run the risk of being sued for, essentially, defaulting on the terms of your credit card agreements. In addition, when consumers settle with a credit card company, those that generally had good credit prior to settling may see their credit scores go down. However, in spite of the risks to their credit score, the impact of debt settlement is still not nearly as severe or long lasting as bankruptcy.
The bottom line is, there is a viable solution to your debt crisis and a way for you to regain control of your finances - whether it is in the form of debt consolidation or credit card debt settlement. Take the first step in finding out how debt relief can help you by getting a free debt relief analysis and savings estimate - at no obligation to you.