Medical, student loan, and credit card debt — or a combination of all three — is something that affects the majority of Americans. Total American consumer debt is over $11 trillion dollars, and according a recent CBS New Report, continues to rise by an estimated $75 million dollars every hour. Of the course of the past 6 post-recession years, Americans have remained resilient, and continue to seek debt help and debt advice in order to get their finances on track and live debt free.
Debt counselling services provided by debt relief centers and agencies allow those who need to regain control of their finances the opportunity to explore several flexible debt solutions. Don’t be discouraged. It’s important to remain objective in regards to getting help with debt, is there is a solution for every financial situation, now matter how bad it may seem.
Getting help with debt typically falls into three different categories: debt management, debt settlement, and debt consolidation, used in conjunction with financial planning advice and frugal living. while an experienced debt counselor will be able to help you determine which solution is best for your particular needs, it’s important to at least have a basic understanding of what each option entails prior to seeking out debt relief services. This will expedite the process and help get you on the fast track towards living debt free.
Debt consolidation is perhaps one of the most popular ways consumer choose seek help with debt due to its convenience. Debt consolidation allows you to combine all of your debt into one single monthly payment, which is then divided among your creditors. The payment is determined on your total household income, in addition to your other monthly expenses. This method allows you to continue building your credit, while reducing your interest rates.
Debt management allow you to negotiate lower interest rates while debt settlement allows you to negotiate a lower principle balance. After carefully reviewing your financial situation, your debt counselor will be able to determine which option is in your best interest and aligns with your financial goals.