The Debt Archives
It’s now the end of January, and in mailboxes across America, credit card bills from the holidays are arriving. January statements tend to be the largest ones of the year […]
The Federal Reserve, in their monthly report released Monday, noted that American credit card debt has reached a record high. The current amount of credit card debt owed by Americans […]
Unsecured Debt When it comes to debt relief, unsecured debt is more commonly settled and consolidated than secured debt. Unsecured debt is not tied to assets or collateral, and often […]
Good and Bad Credit Scores for Debt Relief Good credit isn’t necessarily required to enter a debt consolidation, of debt settlement program. While a good credit score will most likely […]
Collectively, around 43 million Americans have student loan debt. In fact, Americans owe around $1.3 trillion in student loans debt. For federal student loans, there are a variety of loan […]
While chapter 7 and chapter 13 bankruptcy erases most unsecured debt that is not considered a “priority,” it is still extremely difficult to get rid of these types of debt. […]
What Is Collections? If possible, it is best to avoid the headache and stress of having a bill go into collections. Not only is it typically a negative experience, but […]
About the Balance Transfer Credit Card People wanting a credit card to help with debt consolidation can apply for a balance transfer credit card. This card can help consolidate debt […]
Healthcare costs are on the rise, and with average daily hospital expenses being around $3,949 per person, medical bills can add up quickly. Since medical bills are considered unsecured debt […]
Since debt relief programs deal with one’s personal and financial information, it is important to avoid all of the scams and companies who make fake promises. A lot of companies […]
- Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
- Negotiates with your creditors on your behalf.
- Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
- Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
- Combines all your debts and creditors into one monthly payment.
- Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
- You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
- Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
- Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
- Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
- Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
- Borrowers can receive funds from their loan within only a few days.
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