Do You Need to Payoff Debts Faster?
Many consumers in New Mexico and across the country find it more and more difficult to pay off credit card debt. Symptoms of spiraling debt are high interest rates, minimum payments that are harder and harder to make each month, or even using credit cards to pay for some of the essentials in life – such as gas, food, or medicine. It's not unusual for many individuals and families to struggle with credit card and other unsecured debts from time to time. But oftentimes, it gets to the point where consumers can't pay off credit card debt, and what started as a temporary situation can easily escalate and become a way of life.
If you need to payoff debts or get out of debt at an accelerated pace, find out 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.
Payoff Debts Through a Debt Consolidation Plan
A debt management plan (DMP), or debt consolidation, coordinated through a consumer credit counseling service, is generally a proven way to pay down or payoff credit card debts on an accelerated schedule. The goal of debt consolidation is to combine or "consolidate" all of one's credit cards and other unsecured debts into a single, more convenient, more manageable payment each month. A debt consolidator takes this one payment and distributes it on time each month to individual creditors until debts are resolved.
What Are the 1-2-3 Steps to a Debt Management Plan?
Ideally, an accredited debt relief provider will offer a free consultation or free debt evaluation as the first step in creating a debt management plan. The credit or debt counselor will interview the consumer to get the information necessary to verify the amount of credit debt 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 these details in hand, the debt relief specialist will then create a personal debt relief solution and make proposals to each creditor, asking 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. It is necessary to understand how these benefits work together because the success of the program – and the consumer – depends on it.
- 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 be the key to helping consumers get out of debt in less time if credit cards terms included the higher interest rates and only minimum payments were made month after month.
If you need to payoff debts or get out of debt more rapidly 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 plans (DMPs) coordinated through a debt counselor can be so effective in resolving debts: When consumers acknowledge that they have a spiraling debt problem 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, existing principal amount of debt is paid off month after month on time, and hopefully, at a significantly reduced interest rate. In essence, more of a consumer's monthly payment goes towards paying down the principal amount of debt until the it is completely resolved and the debt-free day is celebrated!
Debt Relief is Simple Math - Does It Work?
If debt consolidation or debt management plans (DMPs) are such "simple" concepts to grasp, are they truly effective, and do they 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 to set aside the funds needed each month so the debt services provider will be able to distribute payments month after month to creditors. However, it's a fact of life that many people who get into serious debt often find themselves in that money 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 "simple" logic that says that people who are not diligent in staying with the plan will not be successful. The bright side is, once families and individuals decide it's time to do what's necessary to change spending habits and regain control of their finances, debt management plans have saved them thousands of dollars.
To explore your debt relief options and learn 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 New Mexico residents who are faced with an urgent high-balance credit card debt crisis, debt settlement or debt negotiation may be a viable alternative. The debt settlement process typically involves allowing consumers in distress to stop paying high interest credit card minimums. Instead, those minimum payments are "set aside" to be used for the purpose of extending a debt settlement offer, through a debt negotiator, to a credit card company. It makes sense that a credit card company, faced with the chance of possibly "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 it's true that debt settlement can save quite a bit of money and it can be preferred over bankruptcy, it is a debt relief option whose drawbacks should be recognized from the outset.
Consumers should understand that when they can't pay credit card debt according to the terms of their agreements, creditors can threaten or take legal action. In addition, money that is saved by settling for substantially less is subject to taxation. Finally, personal credit will normally dip with debt settlement, but the impact will not be as serious or long lasting as personal bankruptcy.
If you are struggling with credit cards and other unsecured debts and are in need of debt relief assistance, learn more about your debt relief options and receive a free debt relief evaluation and savings analysis. Start now.
Debt Relief Can Help Get Your Life Back
While the state of New Mexico does not offer specific credit card relief programs, grants, or consolidation loans to help consumers pay off their credit card debt obligations, the state does offer several areas of support. These programs can help New Mexico residents in need of food, medical assistance, housing assistance and help paying utility bills. The state of New Mexico has a variety of financial assistance programs available, to learn more about these resources, go to the state's Human Services Department official page Looking for Assistance section.
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 a proven plan that can put you on the path to financial freedom. That fact alone can not only save you thousands of dollars, but years and years of stress and discord.
If you are a resident of New Mexico coping with credit cards and other unsecured debts and in need of debt relief assistance, learn more about your debt relief options today. Get a free debt relief estimate and savings analysis - at no cost to you.