Debt Resolution
At Relief Services, our number one priority is helping our clients resolve unmanageable debt. We accomplish this through a variety of debt relief programs that focus on consolidating your unsecured debts into one manageable payment.
Do I Qualify for Debt Resolution?
There are a few factors that can help determine if you may qualify for debt resolution. 1.) Are you overwhelmed with debt that is unmanageable, or will soon be unmanageable? If yes, proceed to question number two. 2.) Is the unmanageable debt an unsecured debt (meaning no collateral attached)? If you answered yes again, proceed to question three. 3.) Do you have an income, and are willing to make good on the debt(s) if you can do so through a manageable payment and reasonable discount on the balance? If you answered yes to all three of these questions, Debt Resolution is a viable option to consider.
How Does Debt Resolution Work?
Debt Resolution is the process of negotiating unsecured balances with the intent of settling for less than what is owed. Creating a plan that satisfies the outstanding debts, while also providing an affordable repayment plan is crucial to the success of the process. That’s why using a Debt Resolution firm that has experience in dealing with unsecured creditors through the negotiation process can be extremely helpful. They can assist by proving the case of your hardship status and negotiating favorable repayment terms based on your budget. Debt Resolution firms also have the experience needed to get the longest repayment term in place. In the end, using a qualified firm can save you a lot of hassle, stress, and money.
Options Other than Debt Resolution for Unsecured Debts
- Debt Stacking: Debt Stacking is the process of paying off debts from highest interest rate to lowest rate. Secured debts can also be included in a Debt Stacking plan since this is just a repayment strategy that doesn’t involve being delinquent or the help of an outside firm. The Debt Stacking method works by paying a little extra, whatever you can afford, on the highest interest debt until it’s paid off. Once paid off, apply what you were paying on that debt to the next highest interest debt until it’s paid off. Continue this process until all debts are paid.
- Debt Snowball: Like Debt Stacking, the Debt Snowball focuses on paying debts in a certain order. The method is the same as Debt Stacking, but the order is different. With the Debt Snowball you pay debts in the order of lowest balance to highest balance. This method may pay off the first debt faster than Debt Stacking, but overall, Debt Stacking will save you more money in the end since it focuses on paying off the highest interest rate debts first. You can also include secured debts into a Debt Snowball repayment plan.
- Debt Management: This method involves gaining control over your debt by implementing better budgeting and financial planning practices. There are many companies that provide Debt Management services that will guide you through the process via credit counselors. A good Debt Management company may also help lower your payments by getting fees waived, getting lower interest rates negotiated with your creditors, and possibly getting terms extended. Unlike Debt Resolution, they do not help with getting your overall balances reduced over and above fees.
Please be advised that the above alternatives to Debt Resolution are for those struggling less than those in need of Debt Resolution. If you currently have unmanageable payments, Debt Stacking, Debt Snowball, and Debt Management most likely won’t give you the financial reprieve you need.