Do You Need to Payoff Credit Card Debts Faster and Save Money?
In Massachusetts and across America, many consumers find themselves struggling with unmanageable credit card debt. Symptoms of uncontrollable debt include high interest rates, minimum payments that are harder and harder to make each month, or even using credit cards to pay for some of life's essentials - such as gas, food, or medicine. While many individuals and families are faced with credit card and other unsecured debts from time to time, for others it can become a way of life. When it becomes more and more difficult to pay off credit cards or pay down debts, what begins as a temporary situation can easily reach a crisis level.
If you need to payoff credit cards and other unsecured debts at an accelerated rate and save money, see if help is available through a structured debt relief plan coordinated through a BBB-accredited debt relief provider. Answer a few simple questions online to Request Your Free Debt Evaluation and Savings Estimate.
Pay Off Debts Through a Debt Consolidation Plan
Debt consolidation, or a debt management plan (DMP), coordinated by a credit counselor or debt counselor is a tried and true method to pay down or pay off credit card debts on an accelerated schedule. Debt consolidation aims to combine or "consolidate" all of one's credit cards and other unsecured debts into a single, easier, more affordable payment each month. This predictable monthly payment is made to the debt consolidator, who in turn distributes the payments on time month after month to creditors until debts are resolved.
What Are the 1-2-3 Steps to a Debt Management Plan?
The creation of a debt management plan ideally starts with a free consultation or free debt evaluation with an accredited debt relief provider. The credit or debt counselor will interview the consumer to get the details necessary to verify the amount of credit cards and other unsecured debts. Next, the debt specialist will find out how much of their monthly income can reasonably be allocated to pay down debts. With this information in hand, the debt relief specialist will then create a customized debt relief plan and make proposals to each creditor, requesting that they agree to assign their debt to the plan. This plan includes the benefits of debt relief that the creditor must first agree to before the plan can be executed. These benefits are important to understand because they are vital to the success of the program and, therefore, the consumer:
- Lower, More Affordable Monthly Payments
- A Reduction in Interest Rates
- A Waiving of Late Fees and Penalties
- A Consolidation or combining of all unsecured debts into a single, more manageable, monthly payment
The above benefits of debt relief, which must first be approved by creditors, can save consumers a substantial amount of money if debt plans are fallowed faithfully. They can also be key to helping individuals and families get out of debt in less time if their credit card terms included the higher interest rates and only monthly minimum payments were made.
If you need to pay off debts or get out of debt on a shortened timetable through the benefits of lower interest rates, find out if help is available through a structured debt relief plan from a BBB-accredited debt provider. Get your free debt evaluation and savings estimate.
There is a simple reason why debt management programs coordinated through a debt counselor can be so powerful and effective in resolving debts: When consumers recognize that they have a troublesome amount of debt and agree to reach out for help, they must first agree to stop using credit cards. By "freezing" their debt level, essentially half of the problem is solved. Then, the existing principal amount of debt is paid off on time month after month, and hopefully, at a significantly reduced interest rate. That means more of a consumer's payment each month goes to pay down the principal amount of debt until the debt is completely resolved and the debt-free day can be celebrated!
Debt Relief is Simple Math, but Does It Work?
The concept of debt consolidation or debt management plans (DMPs) is "basic" to grasp, how can it be truly effective? Do they really work to help consumers get out of debt? The answer is "yes," if consumers who are enrolled in the plan simply maintain the discipline necessary: They must continue to set aside the funds needed each month so the debt services provider will be able to distribute payments, month after month, to creditors. Unfortunately, it's a fact of life that many people who get into serious debt often find themselves in a crisis in the first place because they don't practice good budgeting and spending habits. So, if those same habits continue, no matter how effective debt management programs are and how much money and stress they can save, it is also logical that people who are not diligent in staying with the plan will not be successful. The good news is, debt management plans have saved many individuals and families thousands of dollars and been a lifesaver for those who decide it's time to break the debt cycle and do what's necessary to change spending habits and regain control of their finances.
To learn more about your debt relief options and how a debt consolidation program coordinated by a BBB-accredited provider can help, answer a few simple questions and Request Your Free Debt Analysis and Savings Estimate.
Will Debt Settlement or Debt Negotiation Help?
For individuals and families in Massachusetts facing a serious high-balance credit card debt crisis, debt settlement or debt negotiation may be a viable option for those in hardship who may even be considering bankruptcy. The debt settlement process typically involves a process by which consumers in distress are encouraged to stop paying high interest credit card minimums and the funds that would've been directed to pay minimums are, instead, "set aside" to be used for the purpose of building up funds that can be used to extend a debt settlement offer, through a debt negotiator, to a credit card company. It makes sense that a credit card company, faced with the possibility of "selling off" bad debt for as little as 10 cents on the dollar, might be willing to accept a negotiated settlement offer from a consumer experiencing a financial hardship. While debt settlement can save a substantial amount of money and it can be a positive alternative to bankruptcy, it is an aggressive debt relief option whose drawbacks should be recognized from the outset.
Consumers should be aware that when they stop paying cards according to the terms of their cardholder agreements, creditors can threaten or take legal action, although this recourse is not always taken by credit card companies. In addition, money that is saved by settling for substantially less is subject to taxation. Finally, debt settlement will normally have a negative impact on personal credit, but not usually as serious or long lasting an impact as personal bankruptcy.
If you are struggling with credit cards and other unsecured debts and in need of debt relief assistance, learn more about your debt relief options and request your free debt relief savings estimate and savings analysis at no obligation.
State Programs for the Citizens in Need
During times of financial hardship, debt relief programs can help many individuals and families. Some consumers, however, may need more immediate relief, such as help paying for utilities, rent, child care or even food or gas. The state of Massachusetts has a variety of financial assistance programs available for residents, such as The Low Income Home Energy Assistance Program (LIHEAP) or the Massachusetts Transitional Aid Program.
To learn more about these resources and more, go to the state's homepage Benefits section.
Get Debt Relief and Get Your Life Back
Going from being overwhelmed with credit cards and other unsecured debts to a debt-free life can help you breathe a little easier. Keep in mind that because every individual's debt situation is unique, it's best to do your due diligence. Compare and contrast all of your debt relief options, then take the time necessary to thoroughly review them. Gain a clear understanding of the debt relief program or plan you are evaluating, the BBB accreditation or standing of the debt provider, how much you could save, and how long it will likely take for you to realize those savings. Help is available, but debt relief does not make debts magically go away. It is, however, a proven plan that can potentially save thousands of dollars and years of stress over finances. The bottom line: Whether you choose to take advantage of the services of a debt relief provider, or decide to take steps on your own to take control of your debts, one of the best things you can do for yourself or your family is to realize that high interest debt does not have to be a way of life and you can take positive steps to put yourself on the path to financial freedom.
If you are a resident of Massachusetts struggling with credit cards and other unsecured debts and need debt relief assistance, learn more about your debt relief options. Simply answer a few, simple questions to get your free debt relief analysis and savings estimate today.