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How Debt Relief Works
- 1. How Debt Relief Works How can it help you?
- 2. What is debt relief? • Debt Relief by definition is the reorganization of debt in any form with the aim of providing relief either partial or in full from a financial burden. • Creditors may only consider debt relief if the repercussions of debt default is perceived to be so sever that debt reduction would be the better alternative.
- 3. Types of Debt Relief
- 4. Debt Consolidation • Debt consolidation involves consolidation multiple accounts into one with one monthly payment. • Most often involves a new loan which has its risks. • Only unsecured debt can be consolidated. • Debt consolidation does not lower the amount you owe. You simply get a new creditor.
- 5. Debt Management • AKA consumer credit counseling. It is a creditor sponsored program designed to help pay back debt owed. • All debt accounts is consolidated into one account.
- 6. Debt Settlement • The debt is settled for a lump sum at a lesser amount than what is originally owed. • A special account is set up for a monthly payment calculated according to one’s monthly needs and goals. • The debt settlement company deals with lenders, leaving less stress for clients.
- 7. Bankruptcy • Bankruptcy discharges unsecured debt but does not include secured debt. • Bankruptcy will stay on your credit report for up to 10 years. • May lower credit rating and take up to 200 points.
- 8. Does Debt Relief Work?
- 9. Debt relief works very well. However, it is very important for consumers to be informed of the various options available before making a decision. What worked for others may not work the same way for some.
- 10. Tips for Consumers • Be informed. • Evaluate your financial status. • Get debt help by speaking to a debt counselor.
- 11. • CuraDebt Reviews • CuraDebt Review Site