America’s debt issue is out of control. It’s so bad in fact that many people are dying with debt, and at an average of $62,000! Between mortgages, car payments, credit card balances, and student loans, it’s unusual these days to have more money than you owe.
However, just because debt is common doesn’t mean certain figures aren’t insurmountable. When debt has accrued to the point that it’s not able to be paid back, alternative actions must be taken.
What is Debt Relief?
Debt relief can include many specific options depending on the type of debt you have.
However, some common debt relief options include:
- Consolidation – Debt consolidation combines all your debts and varying interest rates into one single monthly payment with a lower interest rate.
- Repayment Plans – Adjusts the payment schedule for a given debt, mostly in relation to federal government loans and tax debt.
- Settlement – Suitable for credit card, personal loan, medical debt and certain private student loan debt. Settling could lower credit scores temporarily, but it could also save you substantial money off an overall debt balance.
- Bankruptcy – A wide and nuanced topic depending on the type of bankruptcy filed and the state it’s filed in. Essentially bankruptcy involves a court-ordered discharge or restructuring of an individual’s debt.
Now that we have some terms under our belt, let’s look at some debt relief companies that have made a name for themselves negotiating several debtor’s totals.
Freedom Debt Relief
For those with $7,500 in unsecured debt, Freedom Debt Relief could cut as much as 15–30 percent off an overall debt sum which already includes their service fees. Payments, which are generally lower than the combined monthly payments debtors are facing, are made into a fund established specifically for debt relief. Creditors are paid from this fund when settlement agreements are reached. The process could take anywhere between two and four years to completely resolve. In addition to relatively lower fees in the debt relief space, Freedom has been lauded for great customer service both during the week and extended hours on weekends. The company operates in 34 states.
CuraDebt is another industry regular. CuraDebt is ideal for those who aren’t in a lot of debt, but still don’t have the means to get out of it on their own. They work with debt as low as $5,000 and could reduce monthly payments considerably. Fees range from 16–20 percent of the total debt you enroll in the program with. CuraDebt operates in 38 states. Customer service is responsive, and they offer both mobile management and a customer dashboard to track progress.
Accredited Debt Relief
Accredited Debt Relief has made a name for itself in both the settlement and consolidation game. Like National, Accreditor’s fees range from 18–25 percent depending on your debt but there is no minimum debt amount. Accredited stands out with its wide operation spanning 39 states. They carry a similar two-year minimum, four-year maximum program, which is in line with the average debt settlement timeframe.
Final Thoughts on Debt Recovery
Fully understand your situation and the kind of debt you have before you opt for debt relief assistance. There are many options available to debtors, but each isn’t a uniform solution. Many people have made mistakes arbitrarily choosing one debt relief strategy over another. Do your research, and when in doubt, consult with reputable debt relief companies on how to best solve your situation.