Debt Relief Options – The Inside Story

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Are you overwhelmed by debt?

In these uncertain economic times, it wouldn’t be surprising.

More and more people are looking for help to get their finances back on track.

There are debt relief options available and help may be closer than you think.

Studies show that excessive debt is a heavy burden for people to bear.

The negative impact it has on our minds and bodies is huge.

So what can you do to get some relief

from the debt that’s sucking all the joy out of your life?

There are 3 main debt relief options available, credit card balance transfers,

debt consolidation loans, and credit counseling services.

They are all there to help you, but like anything in life,

you have to know the potential negatives of the situation.

Credit card companies offer one option for debt relief.

They will often let you transfer the balances of your

other credit cards to their card and offer you a much lower rate.

Up front this all looks great, but read the fine print.

The lower rate is often only for a short time, then the rate goes up.

If the new rate is still lower than what you were paying

to start with, that could be a good deal.

In some cases the rate will actually be higher

than what you were paying before.

Sometimes a lot higher! So read the fine print

and know what you are agreeing to before you sign.

You may be able to get a debt consolidation loan through your bank.

By consolidating some of the debt you have

into one monthly payment you could lower

your cash outgo by quite a bit.

Once again, be careful of what you’re getting into.

Rather than just focusing on the amount per month,

you also need to consider what the new loan

will cost you over the long haul.

It could be that they stretch the loan out longer;

making the monthly amount you pay lower,

but at an astronomical interest rate.

In this case you will end up paying back far more

than if you had just paid off what you had to begin with.

Credit counseling companies can also be very helpful

when you are bogged down in debt.

They will help you by working directly with your creditors on your behalf.

The will negotiate for you and get your monthly payment amount adjusted,

sometimes get you a better interest rate,

and they may even be able to get the amount you owe adjusted.

You would make one payment a month to the agency

and it would be disbursed to your creditors.

If you choose to use a credit counseling agency,

be aware that they do get a fee for their services.

In some cases you would have to pay,

in others the lenders pay the fee.

Make sure you know which type of agency it is before signing any contract.

And lastly, don’t let the situation you’re in get the best of you.

Decide which of the debt relief options

you feel most comfortable with and get the ball rolling.

Soon you will be in a better financial place.