Debt Resolution - New York
Are you a resident of New York who is struggling to make payments on your high-interest credit card debts and considering relief through "debt resolution"? If you are, you're not alone. Today, many hard-working individuals and families are also in need of debt resolution, not only from debts from credit cards but also from unsecured debts - like medical expenses, utilities, or department store charges.
The good news is, you have several debt relief options that can help you regain control of your finances, including debt settlement or debt negotiation, debt consolidation through a credit counseling agency, or even bankruptcy.
See how debt relief can help you. Answer a few, simple questions to get a free debt relief estimate and savings analysis - at no cost to you.
As a form of debt relief, debt settlement allows you to settle or negotiate with creditors for a substantially reduced amount of what you currently owe. On the other hand, debt consolidation lets you combine high-interest credit card debts and other unsecured debts into one, more affordable, and more structured payment made to a credit counseling agency.
These days, both methods have become popular alternatives to bankruptcy - which can certainly help clear up debt, but bankruptcy can negatively affect your credit for a longer period of time.
What You Need to Know About Debt Settlement
As mentioned earlier, debt settlement is a proven and legal way to help many consumers reduce their credit card debts. When you enroll in a debt settlement or negotiation program, you are hoping to settle or negotiate with your creditors for significantly less than what you originally owe. However, while it is a smart financial move for many to negotiate their debts, it's important to know the potential risks:
As the term "debt settlement" suggests, credit card companies are certainly not legally required to "settle" or accept your settlement proposal. In many cases, you will be advised to stop making payments on your credit cards to save up funds, over a period of time that you can later use to make a reasonable settlement offer (aka a lump-sum amount). In this scenario, creditors may threaten legal action if you default on the terms of your credit card agreements- which can result in credit scores going down.
Yet, in spite of the risk involving one's credit, debt settlement remains a popular alternative to bankruptcy- which, as mentioned previously, can have a more serious and longer-lasting effect on your personal credit.
Find out how debt relief can help you by requesting a free debt relief analysis and savings estimate. It only takes minutes!
Debt Consolidation Alternative
If you are a New York resident struggling with credit card and unsecured debts, you can also find relief through a process known as debt consolidation, or a debt management plan (DMP). Debt consolidation typically involves "consolidating," or combining, your multiple, high-interest credit card debts into a single, more affordable monthly payment made to a credit counseling agency.
When you enroll in a debt management plan, you work with credit counselors or specialists who review your outstanding financial obligations and then determine how much money you can reasonably set aside for paying off your debts. Once they have all the financial information that they need, credit counselors will typically make proposals (on your behalf) to creditors requesting a reduction of interest rates, or the waiving or elimination of any late fees and other penalties.
Creditors that agree to the proposals are entered into the debt management plan. It's important to understand that while it is the credit counseling agency's responsibility to disburse funds to creditors, you are still responsible to making sure that you have money available in the account set up for your monthly payment.
Many reputable credit counseling agencies can even provide you with a due date that takes into consideration, for instance, when you get paid or have the funds available in the account.
How To Choose A Debt Relief Company
If you have reached a point where your debts are controlling your life, it may be time to seek the help of a reputable debt relief company that can further discuss your debt relief options. Keep in mind that with debt consolidation, you will typically be provided with an easier-to-manage and simplified payment plan that, if followed faithfully, can help you pay off your debts at an accelerated pace. With debt settlement, you are afforded the opportunity to negotiate with your creditors for a significantly reduced amount.
The bottom line is, if you are struggling with debts, there is help available. The smart thing is to do your due diligence, and compare and contrast your debt relief options. Answer a few, simple questions to get a free debt relief analysis along with a savings estimate, at no obligation to you.
