In today’s modern world where prices are high, it can be difficult to not get bogged down under piles of debt. With homes, cars and education at skyrocketing prices in 2019, it is no wonder so many people feel overwhelmed with payments for credit cards, loans and purchases all coming in at once. If you are someone who is struggling to keep on top of things, debt relief may be a viable option to help you bring some order back into your finances. In today’s article, we find out all about debt relief and have a look at whether it is the right option for you. Read on to find out more!
What Exactly Is Debt Relief?
Debt relief is the process of reorganising debt to provide the indebted party with either a partial or full measure of relief. Debt relief can come in multiple forms – from a reduction of the outstanding principal amount to reducing the interest rates on loans or extending the term of one’s loan. All in all, a debt relief programme allows consumers to pay a debt back in multiple payments that are significantly less than the initial amount owed. Typically, a consumer will stop repaying their debt until they have saved enough to pay a certain amount. They then contact creditors to negotiate or discuss paying debts back in multiple payments that are lower than the sum initially owed.
Why Would I Choose A Debt Relief Programme?
There are a number of reasons someone would choose a debt relief programme instead of handling the situation themselves. Some of these reasons include: –
- A majority of people often find it incredibly difficult to negotiate with creditors on their own. With debt relief, the process is left to an expert negotiator who has had many years of experience handling similar situations. Debt relief negotiators can take the hassle out of a fraught situation and can offer more leverage to get better settlements for you.
- Following a debt relief plan takes a high amount of discipline and strategy. For someone who is already struggling with the burden of debt, this can be a difficult task to achieve on your own. Figuring out a plan and payment strategy on your own can be an overwhelming task, which is why many often leave the burden to experts who can handle it quickly and easily.
- Debt relief agencies can assist you in dealing with creditors who often take to harassing those who are indebted to them. A debt relief programme can help you work on ways to deal with collectors and can protect you from unnecessary harassment or contact from collectors. Debt relief experts aim to be the middlemen who contact collectors on your behalf, ensuring that you are left with peace of mind.
What Are The Downsides of Debt Relief?
Of course, with every solution to a problem comes a couple of downsides. One of the main downsides is that it may negatively affect your credit rating, thus making it much more difficult for you to acquire a loan in the future. Another downside is that if you don’t work on your finance management, you may accrue more debt owing due to poor financial decisions. This is why it is so important to get on top of your finance game and find ways for you to manage your finances in a healthy and realistic way.
Who Should Consider Debt Relief?
Those who are looking to deal with just one creditor instead of several would stand to benefit from a debt relief programme. If you are in need of lower interest rates and lower regular payments, debt relief may also be the ideal solution to your problems.
We hope that this article has given you some insight into what debt relief is, how it can help you and whether it is the best solution to your financial problems. All the best!