Do You Need to Pay Off Debts Faster?
In Nevada and across the country, many consumers find themselves drowning in credit card debt that has become unmanageable. Signs that indicate a credit card debt problem 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 absolute necessities of life – such as gas, food, or medicine. While many individuals and families struggle with credit card and other unsecured debts from time to time, when it becomes increasingly more difficult to pay off credit cards or pay down the principal amount of debts, what begins as a temporary issue can easily reach a crisis level and become a way of life. One of the most important things to understand is that, if you continue to struggle with credit card debt, paying only the minimum required, it can take you easily 10 years or much longer to get out of debt. And that is if you commit to avoid using your credit card. In many cases, people who only make minimum payments NEVER will escape the cycle of debt for their entire lives – thus "robbing" themselves and their family of a future that could be filled with prosperity and promise
If you need to pay off debts or get out of debt faster, 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
One proven way to pay down or payoff credit card debts on an accelerated schedule is debt consolidation, or a debt management plan (DMP), coordinated with the assistance of credit counselor or debt counselor. 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. This single consolidated payment is made to the debt consolidator who then distributes the payments on time month after month to creditors until the full compliment of unsecured debts are resolved.
What Are the Steps Required in a Debt Management Plan?
Ideally, a debt management plan (DMP) coordinated by an accredited counselor begins with a free consultation or free debt evaluation with the debt relief provider. The credit or debt counselor will ask questions in order to obtain the details necessary to verify the amount of credit cards and other unsecured debts. Then, the debt specialist will find out how much in monthly income can realistically be allocated to pay down debts month after month. Then, with this information in hand, the debt relief specialist will design a personalized debt relief plan and make proposals to each creditor, requesting that they agree to "place" their debt in the program. As part of this plan, the benefits of debt relief may be offered to individuals and families experiencing a financial hardship. But the benefits aren't automatically granted. The creditor must first agree to these concessions before the plan can be put in place. Benefits can include:
- 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 each and every month.
If you want to explore how you could pay off debts or get out of debt on an accelerated timetable 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.
The reason that debt management plans (DMPs) coordinated through a debt counselor can be so powerful and effective in resolving debts is quite simple: When consumers recognize that they have a credit card debt problem and agree to reach out for help, they must first agree to avoid using credit cards. By "holding" their debt at the current level, essentially half of the problem is taken care of. Then, the goal is to payoff the existing principal amount of debt month after month on time, and hopefully, at a much-reduced interest rate. That means more of the consumer's payment each month goes to attack the actual principal amount of debt until the debt is completely paid off, the balance is zero, and the debt-free day can be celebrated! It this scenario, while the debt management plan (DMP) and credit counselor help to create a personalized program for the consumer, it is so important to understand that is the consumer that actually made it happen by committing to not use credit cards and by making sure that monies were available each month so the debt consolidator could pay off creditors as scheduled.
Debt Relief is Basic Math - But Does It Work?
If debt consolidation or debt management plans (DMPs) are so basic and "simple" to grasp, are they actually 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 commitment and discipline needed 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, many consumers who get into serious debt often find themselves in facing a debt 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 succeed. However, many people who are committed and diligent DO succeed and, what's more, they don't only save money and get out of debt, but through the process they learn good budgeting and spending habits.
Again, the positive news is, debt management plans have saved thousands of dollars and been a lifesaver for many individuals and families who simply decide it's time to put the cycle of debt behind them and do what is necessary to change spending habits and regain control of their financial future.
To learn more about your debt relief options and 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 individuals and families in Nevada who are overburdened with truly high-balance credit card debts, debt settlement or debt negotiation may be a available option to filing for personal bankruptcy. Debt settlement normally involves the process whereby consumers in financial distress stop paying high interest credit card minimums and, instead, begin to "set aside" those funds each month in order to build up a "lump sum" amount that can later be used to extend a debt settlement offer, through a debt negotiator, to creditors. Why would credit card companies even consider settling debt for much less than the full amount owed? It stands to reason that a credit card company, facing the possibility of "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 truly facing a financial hardship. While debt settlement can save a substantial amount of money and it can be a positive alternative to bankruptcy, it is an aggressive debt relief option whose drawbacks should be recognized from the outset:
Consumers should understand that when they stop paying cards according to the terms of their agreements, creditors may threaten or take legal action. In addition, money that is saved by settling for substantially less than the full amount owed is subject to federal taxes. Finally, debt settlement will typically have a negative impact on personal credit, but not as serious or long lasting of an impact as personal bankruptcy, which is generally considered the debt relief option of last resort.
If you are struggling with credit cards and other unsecured debts and in need of debt relief assistance, learn more about your debt relief options and get a free debt relief analysis and savings estimate at no obligation.
State Programs for Low-Income Families
While debt relief consolidation and management programs help many Nevada residents during times of financial hardship, some residents may also benefit from state-assisted programs and services to help provide assistance to pay for for utility bills, grocery bills, emergency housing, or even child care. 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.
Get Debt Relief and Take Control of Your Finances
If you are overwhelmed with credit cards and other unsecured debts, know that you are not alone and help is available. Please understand that, because every individual's debt situation is unique, it's vital to compare and contrast all of your debt relief options, do your due diligence, and take the time needed to review all your debt relief options. Get a clear picture and strong understanding of the debt relief program or plan you are evaluating, the BBB accreditation and rating of the debt provider, how much you could potentially save, and the amount of time it will likely take for you to realize those savings. Debt relief can and has helped many individuals and families get out of debt on an accelerated timetable, save a substantial amount of money, and put the cycle of debt behind them - but debt relief does not make debts magically disappear. However, if debt plans are followed as designed, they can provide a proven path to financial freedom and that fact alone can not only save thousands of dollars but years and years of financial distress.
If you are facing the burden of credit cards and other unsecured debts and in need of debt relief assistance, learn more about your debt relief options and get a free debt relief analysis and savings estimate at no obligation.