What Is Debt Aid?
For California residents who are struggling with bills and in need of relief from debts, the terms "debt relief" or "debt aid" are actually labels for a variety of debt relief options now available to consumers -- including debt consolidation, debt management, credit counseling programs, debt negotiation or debt settlement.
Many consumers exploring debt relief options believe that debt aid or debt relief refers to government debt relief or government credit card debt assistance programs. The fact is, there is no government-provided program of credit card debt relief or debt aid for consumers. However, there is debt relief help available to consumers: In fact, depending on your current financial circumstances, there are a variety of debt relief options to help individuals and families with debts such as credit cards, store cards, medical bills -- and other unsecured debts. Through these programs, credit card companies and other creditors may agree to significantly reduce your current interest rates, waive late fees and penalties, lower monthly, offer more lenient repayment terms or even agree to settle your debt for much less than you owe.
To qualify for the various debt relief or the debt aid programs noted above, your debt must be unsecured debt such as credit cards, gas cards, store cards, personal loans, medical bills, doctor bills -- or any other debt that is not secured or "backed" by real property such as a home or automobile.
Will debt relief aid help you? To find out, begin by answering a few basic questions online
What's the difference between debt consolidation and debt settlement?
Across California and the nation, debt consolidation has become an increasingly popular form of debt aid for individuals in need of relief from credit cards and other unsecured debts. -Through debt consolidation, or what is known as debt management coordinated by credit counselors or credit counseling agencies, you are actually paying back all that you owe, but the goal is get credit card companies and other creditors to agree to reduce your interest rates, waive your existing late fees and penalties, and even grant you more favorable repayment terms -- which could allow you to consolidate all of your unsecured debts into one lower and more affordable payment each month.
If you're currently facing debts and looking for a debt relief option that will, not only bring you relief, but possibly save you a substantial amount of money as well, you may be considering a debt consolidation loan. While debt consolidation loans can help save money -- they can also be very expensive and risky. If you're not careful and diligent with debt consolidation loan payments, they can cause your situation to go from bad to worse as they typically have to be secured an asset such as your home. Should you default on a debt consolidation loan, you could be putting your house at risk.
How can debt relief help you? How much could you save? To find out, begin by answering a few basic questions online
Typically, to qualify for debt relief programs, your debt must be unsecured debt such as credit cards, store cards, medical bills, or even unsecured personal loans. If you are currently faced with unsecured debt that you cannot manage on your own, it is important to find out how debt relief could help you and see how much you could save.
The good news is, if you or your family is in need of debt relief, there are several debt relief options to explore Ã??Ã?Â¢?? in addition to a debt consolidation loan: These debt relief options could not only help to significantly reduce stress, but also help you lower interest rates, eliminate late fees and penalties, lower payments, or quite possibly even help you settle credit card debt for substantially less than you currently owe
Understanding Debt Consolidation Loans: Is Debt Relief a Better Option for You?
Debt consolidation loans normally refer to "combining" or "consolidating" several high-interest debts into one lower interest rate loan. Certainly paying off multiple high interest debts each month with a single lower interest rate loan makes perfect sense at first glance. However, here's where you should be well informed and cautious before moving forward with a debt consolidation loan. Typically, high-interest debts are actually "unsecured debts". This means that they are obligations, or debts, that are not secured by real property such as home or car.
Here's the risk with debt consolidation loans: Should you hit a rough spot in your finances and fail to pay unsecured debts like credit cards, you are NOT putting your home or other asset at risk. However, when you decide to take unsecured debts and "consolidate" them into a single debt consolidation loan that IS secured by your home or other asset -- you are now putting your home or other property at risk: Fail to make debt consolidation loan payments and you could lose your home. By taking on a debt consolidation loan, you have essentially "swapped" unsecured debt for secured debt. Again, if you hit a rough spot financially -- you put yourself or your family in a dangerous situation. That is why it makes sense to explore all of your debt relief options before taking on a debt consolidation loan.
Compare your debt relief options. Get your personalized debt relief analysis and savings estimate
Can You Get Relief from Your Debt Without Taking on More Debt?
For consumers who go with debt consolidation loans and have the financial capability and discipline to pay off the loan each month and not ring up a whole new set of credit card charges -- debt consolidation loans can be a wise financial decision that can save money. However, many people who go with debt consolidation loans to get rid of high interest credit card debt often end up accumulating a whole new batch of credit card charges. If you do borrow money through a debt consolidation loan and fall, once again, for the temptation of the plastic promise -- you now have a debt consolidation loan to payoff AND a new group of expensive credit card charges. In this situation, your debt consolidation loan, which you intended to be your path OUT of debt, has put you even further IN debt.
Avoiding Bankruptcy: How could debt relief aid help you -- How much could you save?
Many people in debt who feel there is little or no light at the end of the tunnel often think of bankruptcy as the only debt relief solution available. In some cases, bankruptcy may be your best option. However, the good news is, depending on your current financial situation, your type of debt and the amount you owe, you have a variety of debt relief options to consider other than bankruptcy -- including credit counseling, debt management, debt consolidation, or even debt settlement. To learn more about your debt relief options, answer a few simple questions online to get your free personalized debt relief evaluation and savings estimate.
How to get help with debts when you are feeling alone and overwhelmed
If you are a resident of California and feeling all alone and overwhelmed with debts, it is important to realize that many people, for a variety of reasons, have hit a rough spot financially and just need some assistance. Understand that there is no shame in debt -- but it is important not to ignore the situation before things get even more stressful and worse. While bankruptcy may be the best option for you, the good news is: you have a variety of debt relief options that may not only help to remove stress, but also help you get back on track financially and save a substantial amount of money.
Speak to a debt relief specialist to get your free debt analysis and savings estimate