Debt Mediation - New York
Finding a proven way to get relief from credit card debts is a big issue for many Americans these days, making terms like "debt mediation" familiar. Are you also like many who live in states such as New York and elsewhere and are falling several months behind on your credit card payments? Have you been struggling with other types of unsecured debts - such as medical bills, utilities, or retail store charges? If so, you might be interested in finding out how you can find relief by consolidating your debts through credit counseling.
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Debt consolidation through credit counseling services involves consolidating or combining high-interest credit card debts and other unsecured debts into a single, more structured, and more manageable monthly payment. This particular approach to debt relief typically involves "mediation," as credit counselors speak to your creditors (on your behalf) requesting more lenient repayment terms - like reduced interest rates or waiver of late fees and penalties.
The goal with debt consolidation is, with a more structured and more affordable repayment plan, you can ideally reduce your debts sooner than if you only continued to make the minimum payments at higher interest rates.
In addition to debt consolidation, another form of debt relief is what's known in the industry as debt settlement - where you can settle or negotiate with credit card companies for a significantly reduced amount of your original debts. Like consolidation, debt settlement is a popular alternative to bankruptcy, which is also a form of debt relief, but one that has a more damaging and longer lasting consequence on personal credit.
Find out if you qualify for savings with a free debt relief analysis and savings estimate - by answering just a few, simple questions. Start here.
Understanding the Debt Consolidation Process
Debt consolidation through credit counseling, aka a debt management plan (DMP), is a proven and legal way for many consumers to get relief from credit card debts and other types of unsecured debts. Before choosing a credit counseling service, it is wise to have a good understanding of how it works, and how it can potentially help you reduce the total amount of your credit card and unsecured debts.
Facilitated by credit counselors who, in a way, act as "mediators" between you and creditors, debt consolidation generally begins with a review of your financial situation - taking into account your income, financial obligations, and other assets. After credit counselors determine how much money you can reasonably allocate to paying down your debts, they will typically develop a relief strategy to help you pay off your debts sooner than if you only continued to make the minimum payments at higher interest rates.
With a strategy in mind, they will generally submit proposals to credit card companies, on your behalf, requesting lower interest rates and the waiving of late fees and penalties. Creditors that accept the proposals are added to the debt management plan. Credit counseling agencies, in turn, distribute those funds to creditors that are in the plan.
Debt Settlement Alternative
As a form of debt relief, debt settlement is a fundamentally different approach than debt consolidation through credit counseling. Unlike credit counseling where you pay off the entire amount of your debt, with debt settlement, you are hoping to negotiate with creditors for substantially less than what you owed.
However, your credit score will typically decline because debt settlement involves "falling behind" on your credit card payments so that you can save funds - over a certain period of time - that you can later use to make a settlement offer. When you skip payments, you are, essentially, defaulting on the terms of your credit card agreements and may face legal action from your creditors.
However, in spite of the risks to your credit, debt settlement is still a popular alternative to bankruptcy - which has a more devastating and longer lasting impact on your credit.
Get A Fresh Start With Debt Relief
If you are truly overwhelmed with credit card and unsecured debts, you can breathe a little easier because you do have several debt relief options. Keep in mind that because every individual's debt situation is different, it is generally a smart move to compare and contrast all your debt relief options, and do your due diligence when selecting a company to work with.
The bottom line is, there is help available for you if you want to take the next step in regaining control of your finances and getting a new lease in life. Consider using debt relief experts who are skilled at mediation with creditors and who can help you get the best savings - through debt consolidation (debt management plan) or debt settlement.
Make the smart move and request a free debt relief estimate and savings analysis today.