Credit Card Debt Help
New Yorkers, like millions of consumers nationwide, are struggling with credit card debt and seeking help -- because in many cases credit card debt has become unmanageable. Fortunately, there are a variety of credit card debt relief options that can not only reduce debts, but save a substantial amount of money as well.
To find out what credit card debt relief could do for you and see how much you could save, begin online by answering a few simple questions and you will receive a free debt relief analysis and savings estimate at no obligation.
Credit Card Debt Relief Options
Depending on your current situation, a credit card debt relief program may be able to help you reduce your interest rates, waive late fees and penalties, lower your monthly payments consolidate your debt -- or even settle your credit cards for considerably less than you currently owe.
To determine if a debt relief program is right for you, it's important to understand which debts typically fall under a debt relief program and how each debt relief program works to assist consumers in need of relief:
Get your free debt relief analysis and savings estimate today.
Debt Consolidation with Debt Management
Many New York residents juggling multiple high interest credit cards find themselves on a debt treadmill going nowhere. If you are in this situation, you may have accumulated substantial credit card debt and are only paying the minimums each month -- or possibly you have fallen behind on payments.
If this sounds like you, you may find that a debt consolidation program or debt management plan coordinated by a debt counselor is the ideal solution to help you get out of debt, save money, and regain control of your finances. How do debt management or debt consolidation programs work?
With a debt management plan, a debt specialist will take the time to go over your current finances -- get a list of your current creditors and monthly obligations, then review with you how much you can realistically afford each month to pay down your debts. With this information in hand, the debt specialist will typically then make proposals on your behalf to each of your creditors requesting that they lower your interest rates, waive any late fees and penalties, and generally allow you more favorable repayment terms, if needed.
Get your free debt relief analysis and savings estimate today.
Consolidating Your Debts Into One Payment
The concept behind a debt consolidation or debt management program is to assist the consumer in getting out of debt at an accelerated pace by consolidating multiple high interest debts like credit cards, store charge cards, gas cards, medical bills, etc. into a single, more manageable payment each month. Each creditor or credit card company that accepts a debt management proposal made by the debt counselor on behalf of the consumer is then added to the debt management plan (or DMP). For creditors that do not agree to reduced interest rates or other debt relief benefits -- the consumer is still obligated to live up to the existing terms of the cardholder agreements.
Typically, consumers who enter a debt management or debt consolidation program coordinated by a credit or debt counselor will have to stop using credit cards that are entered into the program. Simply, you can't get out of debt by continuing to ring up new charges. By avoiding new credit card charges and paying down debts month after month with one consolidated payment distributed by the debt management firm to each of your creditors -- you have the opportunity to get out of debt (and save money) through a predictable plan and timetable that can help you regain control of your finances.
Get your free debt relief analysis and savings estimate today.
Credit Card Debt Settlement
Another debt relief option that has become increasingly popular for those with high-interest and high-balance credit cards is debt settlement. The goal of debt settlement is to "settle" credit card debts with credit card companies for substantially less than you owe. For individuals who are deep in debt (maybe even pushed to the brink of bankruptcy) who would rather pay credit card companies a reasonable settlement amount offer or percentage -- rather than file for bankruptcy -- a debt settlement program may be a good solution.
Understanding Debt Settlement
While debt settlement programs have been able to help individuals get out of debt and save a substantial amount of money -- it is a more aggressive form of debt relief that should be clearly understood. Debt settlement does not make debts magically go away. It is the consumer's responsibility in a debt settlement arrangement to "set aside" money each month through a designated account with the debt settlement company so that the debt settlement company can negotiate and settle debts with credit card companies via a reasonable settlement offer.
Typically, while consumers are saving up money for a successful settlement, they do not pay credit card companies. As a result, the creditors may threaten, or take, legal action against consumers -- and credit scores will typically decline because consumers aren't living up to the terms of their cardholder agreements. In addition, it is important to understand that monies saved by consumers through a debt settlement program are subject to federal taxation.
Why Would Credit Card Companies Agree to Settle?
Many consumers wonder why credit card companies would agree to settle credit cards for much less than is actually owed. The fact is, when consumers fall seriously behind in credit card payments, credit card companies will often "sell off" what is termed as "bad debt" to third party collection agencies or debt collectors for as little as ten cents on the dollar. In this scenario, it is understandable that credit card companies may be willing to accept a reasonable settlement offer from consumers who are in financial distress -- or may even be facing the prospects of bankruptcy.
Credit Card Debt Assistance
The bottom line: For New Yorkers struggling with high-interest, high-balance credit cards and other debts, there are a variety of debt relief options to consider -- including debt management, debt consolidation, debt settlement, and even bankruptcy. But, no single solution is right for every person's situation, so it is important to get a free debt relief assessment from an accredited debt relief specialist to find out if debt relief is right for you and how much money you could save though a debt relief program.
Get your free debt relief analysis and savings estimate today.
