Debt Relief Reviews - Five-Star Reviews or BBB A+ Ratings?
If you are a consumer struggling with credit cards and other unsecured debts, you may be searching for debt relief programs or plans that have been highly reviewed or rated by many individuals in situations that are similar to yours. First of all, it is crucial to understand that no two debt situations are exactly the same, so it's important to select the debt relief or debt resolution program that best fits your specific needs. Whether you select a four-star or five-star company, it is a smart move to review and select a company that has earned a BBB A+ rating with the Better Business Bureau. That rating is generally the strongest indication of a company's true commitment to customer satisfaction. It's also a positive sign that the company has been successful at fulfilling a customer's expectations.
Get a free debt relief analysis and savings estimate from a BBB A+ accredited debt relief provider. Learn about available debt relief options and the benefits of a debt relief plan.
Like many people across the country, residents of New Mexico often find themselves struggling with high interest credit cards and other unsecured debts, such as store cards, gas cards, medical bills, personal signature loans, and more. If this scenario is familiar, you may be searching for information regarding debt management programs, or debt management plans (DMPs) coordinated by credit counselors or debt counselors. You may also be thinking about alternative debt relief options such as debt settlement, debt negotiation, or even bankruptcy. Regardless of your current debt situation, make sure you understand the clear distinctions between these debt options and how they can each help provide relief for consumers experiencing financial hardships.
Credit Counselors Personalize Debt Management Plans
The purpose of a debt management or credit-counseling program is to take each one of your credit cards and other unsecured debts and combine or "consolidate" them all into a single, more manageable payment each month. Drawn up with the help of a credit or debt counselor who will typically request that creditors, one by one, agree to proposals requesting lower interest rates, waiving of late fees and penalties, and more favorable repayment terms, a debt management plan is customized to help consumers get relief from debts while also saving a substantial amount of money -- and helping consumers get out of debt faster than they could on their own if they were to continue to making minimum payments month after month at a higher interest.
If you are experiencing a financial hardship and need to explore your debt relief options, you can get your free debt relief evaluation and savings estimate at no obligation.
How are debt management plans (DMPs) customized for you? Credit or debt counselors will generally speak personally with you to get information regarding the financial hardship you are experiencing and verify how much debt you have. They will then gain a clear understanding of your income level, as well as how much money you can realistically designate each month to pay down or payoff your debts. Finally, they will put together a personalized debt management plan (DMP) that calls for you to temporarily stop using credit cards and make one consolidated payment each month to the credit-counseling agency. Funds will then be distributed to creditors, one by one, on a timely basis month after month -- provided that the consumer has the discipline to make sure that the amount necessary for the one consolidated payment is in their account. It's important to understand that, before a plan can be established, it must first be submitted to creditors requesting that they agree to extend the benefits of debt relief to the consumer in need. These benefits can include:
- Lowering Monthly Payments
- Reducing Interest Rates
- Waiving of Late Fees and Penalties
- Consolidating or combining debts into a single, more manageable, monthly payment
- Helping you save quite a bit of money and allowing you to get out of debt in less time than you could on your own if you were to continue paying only the monthly minimum month after month at higher interest rates.
Creditors who understand that you are sincerely experiencing a financial hardship may be more open to agree to the proposals submitted by credit or debt counselors. Upon the acceptance of their proposals, they are then added to the debt management plan. For creditors who do not agree to extend the benefits of debt relief, you are still obligated to adhere to the original terms of your cardholder agreements.
If you need relief from credit cards or other unsecured debts, answer a few, simple questions online and get your free debt relief evaluation and savings estimate at no obligation.
Via certified credit counselors or debt counselors, credit counseling agencies also provide additional debt relief services, including help with budgeting, developing good spending habits, financial education and more. Truly outstanding debt relief or credit counseling agencies will always include a strong instructive component to their program. Not only will they help you get out of debt, they will also help you come to grips with the root cause of your debt crisis and give you the necessary tools to permanently end the cycle of debt.
Find out if debt relief could help you and how much you could save every month. Request your free debt relief analysis and saving estimate - at no charge to you.
Debt Management Is a Proven Path to Save Money
While debt management or credit counseling is a proven method for debt relief that has helped many individuals and families, it's important to know that debt management requires a certain amount of discipline and restraint to avoid credit cards. It also requires you to make on-time, consolidated payments month after month, and an overall dedication to stick to the plan and complete a program that typically takes three years or more before debts are completely resolved and the debt-free day arrives.
Three to five years may seem like a long time, but once you stop using your credit cards and see debts begin to dissolve as you make payments month after month, your debt-free day will arrive before you know it! Ask anyone who has stayed with a debt relief plan and experienced the life-changing benefits first hand. No, debt relief does not make debts magically disappear, but it has provided welcome relief and helped countless individuals and families get off the debt treadmill and get onto the path of financial freedom!
State Programs for Low-Income Families
There's no question that debt relief programs help many Americans during times of financial hardship, but New Mexico residents with low income or in crisis may also benefit from state-assisted programs and services to help pay for some of life's essentials such as food, clothing, utility bills, grocery bills, medical bills, and more. The state also has programs to assist those who are unemployed, helping them improve their job skills through training and certification programs. To learn more about these resources, go to the state's Human Services Department official page Looking for Assistance section.
Debt Settlement Alternative
Debt settlement is an alternative debt relief option to debt management through credit counseling. Debt settlement, or debt negotiation, is typically utilized by individuals and families who are in over their head with high interest, high-balance credit card debt. These individuals may even be considering bankruptcy. It is a more aggressive form of debt relief that has helped consumers get out of credit card debt at an accelerated pace, assuming funds can be "set aside" to build up a "lump sum" amount that can later be used to extend a settlement offer to creditors. There are important differences between debt settlement and debt management:
With debt management you are actually paying off everything you owe, but saving money through much lower interest rates and a waiving of late fees and penalties. The objective of debt settlement is to "settle," or negotiate, with credit card companies for substantially less than is currently owed.
It is often within the best interest of credit card companies to consider "settling" with consumers. Creditors may realize as little as 10 cents on the dollar should credit card companies eventually decide to "sell off" accounts that are 60 to 90 days late, or more, to a third-party collector. So, it makes sense that credit card companies may be open to accepting a reasonable settlement offer made by you or by a debt settlement company negotiating on your behalf. Consumers should be aware that when they default on their credit card agreements in order to set aside money in a settlement fund, creditors may threaten or take legal action. In addition, money saved through credit card settlements are subject to federal taxes. Finally, debt settlement will likely have a negative impact on personal credit, but is not as severe or long-lasting as that of bankruptcy.
To compare your debt relief options and see how much you could save, take a moment to respond to a few basic questions online so that we can connect you to a BBB-accredited debt relief provider. Find out how much you could save through a structured debt relief plan by taking a moment to answer a few questions online. Get your free debt relief analysis and savings estimate.