Get Debt Relief Assistance without a Grant
These days, many individuals and families in Nevada and across the country are struggling with out-of-control credit cards and other unsecured debts for a variety of reasons, including unemployment, medical bills, or an unexpected personal crisis. While some consumers may be hopeful that a debt relief grant or some form of government assistance is available to resolve credit card debts, this type of credit card assistance, or grant, is not available. However, the good news is that there is help available to consumers struggling with unmanageable credit cards and other debts: in addition to personal bankruptcy, which is generally considered the debt solution of last resort. There are a variety of debt relief options that may bring much-needed relief for consumers via debt consolidation or debt management plans (DMPs), credit counseling, debt counseling, and debt settlement or debt negotiation.
If you are experiencing a financial hardship and in need of relief, you can compare your debt relief options and request your free debt relief evaluation and savings estimate to see if debt relief could help you.
Understanding Your Debt Relief Options
In addition to personal bankruptcy – credit counseling, debt consolidation, debt management, or even debt settlement have become popular debt relief alternatives. Through structured debt relief plans based upon your existing debt and available income to pay down those debts, you may find yourself breathing easier once you understand that you can get expert assistance to help you take control of debts and get on a path to financial freedom.
To explore your debt relief options, answer a few, simple questions to get your free debt relief analysis and savings estimate today.
How Debt Consolidation Works
If you are struggling with debts from multiple sources, like credit cards or other types of unsecured debts such as store cards, gas cards, doctor bills, medical bills, utilities, or more, debt consolidation through a debt management plan (DMP) may be a viable way for you to consolidate multiple debts into a single, more manageable payment each month. And, if creditors agree to accept proposals to lower your interest rates and waive late fees and penalties, a debt management plan (DMP) may make it easier for you to pay off debts at a pace you can afford. The bottom line: Debt consolidation, or a debt management plan, provides individuals and families overwhelmed with multiple debts the opportunity to combine, or consolidate, high-interest credit card and unsecured debts into a single, more workable, payment plan made to a credit counseling agency.
Credit counseling agencies, in turn, have the task of distributing those funds to credit card companies. When you enroll in a debt consolidation program, credit counselors will review your finances, debt amount, and sources of income to determine how much money you can reasonably allocate each month to pay down your debts. Debt relief counselors then create a game plan or strategy to help reduce your high interest rate debts and submit proposals on your behalf to creditors requesting the benefits of debt relief. These typically include lower interest rates, the waiving of late fees and penalties, and generally more favorable repayment terms. Creditors who recognize your financial reality, that you are are indeed going through a financial hardship, will be more likely to agree to debt proposals and also likely to be more willing to place your account into the structured debt management plan for payment over time until your debt with them is resolved. This is not to say that all creditors will agree to accept the proposals and offer the benefits of debt relief, but for individuals and families facing a genuine personal or financial hardship, these benefits may be available. For creditors who do not agree to offer the benefits of debt relief, consumers are still bound by the terms of the original cardholder agreements.
To explore your debt relief options, answer a few, simple questions to get your free debt relief estimate and savings analysis.
State Resources for Low-Income Families
Some individuals and families, regardless of their credit card debt or financial situation, may need more immediate help from other sources to pay for the basic essentials in life – such as help paying for utility bills, rent, groceries, and childcare. To assist with their needs, the state offers such programs like Nevada Check Up (SCHIP), Nevada Energy Assistance Program, and the Head Start program, among others. To find out more about these services designed for low-income families and individuals, go to the state's homepage Benefits section.
Debt Settlement or Debt Negotiation
Settling credit card debts is another debt relief option that can help to resolve high balance credit cards, as long as you can accumulate money in a designated "set aside" account so that you will have the funds needed to extend a reasonable settlement offer to creditors.
With debt settlement, it's important to understand that if credit card companies see that you have fallen behind by 60-90 days or more and decide eventually to "sell off" your debt as "bad debt" to a third-party debt collector, they may only receive as little as 10 cents on the dollar. While this is not to say that creditors will agree to settle for as little as 10 cents on the dollar, it does stand to reason that credit card companies may be willing to accept a reasonable settlement offer made by you or by a debt settlement company, working on your behalf, for substantially less than the full amount owed.
There are some additional factors to be aware of when it comes to debt settlement: When consumers default on the terms of credit card agreements for the purpose of setting aside monies 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 typically will have a negative impact on personal credit, but not as severe or long lasting as a personal bankruptcy.
In summary, despite the legal and tax implications of debt settlement, it has become an increasingly popular option for consumers experiencing financial hardship who would rather settle debts for as much as they can reasonably afford, rather than default on debts entirely and file for personal bankruptcy.
To review your debt relief options, take a moment to get your free debt relief estimate and savings estimate.