Debt Relief Programs

Debt relief programs are designed to get you out of debt sooner than you thought possible and save you a lot of money in the process. Plus, there are debt relief programs for any situation.

Debt Relief Programs

Do you know what to expect from the various debt relief programs available today? How about total annihilation of your debt?

Plenty of Options

When it comes to getting rid of your debt, you need a debt relief program that will fit your life and your needs. From basic, one-size-fits-all debt relief programsto specific debt relief programs that have specific requirements, we'll explain a little bit about each one.

First, there's your basic debt consolidation program. When you enroll in a debt consolidation program, a debt consolidation specialist contacts your creditors to get your balances reduced through interest rate reductions and removal of past "junk" fees. Then he or she takes the new balances and combines them into one. Then instead of making many monthly payments to your creditors, you make one payment each month to the debt consolidation company, and they distribute it to your creditors. It only takes five years to get out of debt under this kind of program.

Another option is a debt consolidation loan. This is simply a loan given to you to pay off your creditors in full. There's no negotiation with your creditors to get your balances and interest rates reduced, but the interest rate on the loan is a lot lower than your credit card balances were. As a result, you can experience credit card debt relief in five years.

One of the least popular debt relief programs is debt settlement. Under this program, you can get your credit card balances reduced by 60-80%. This works out to your paying back less than what you actually owe. In return, however, your creditors want their money immediately. This is surely still a hefty amount, so you need to be sure that you have access to that kind of money. Some debt settlement companies will pay the creditors for you, then you pay the debt settlement company back over a period of one to three years. No matter which way you do it, debt settlement does leave a negative listing on your credit record for seven to ten years.

Plagued by student loan debt? Student loan debt consolidation combines all your student loans into one, reduces the interest rate and cuts the payments in half by stretching them out over a number of years.

If you're a homeowner, you have the best option when it comes to debt relief--a debt consolidation mortgage. Debt consolidation mortgages allow you to add the amount of your debt to your mortgage. This means you can pay off your credit cards immediately then pay the money back into your mortgage at the same low interest rate as your mortgage. Your mortgage payment might go up just a little, but it's worth it. It's the cheapest of all debt relief programs.

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