• How to Get Started with Debt Relief and Debt Consolidation

    Debt relief for consumers is needed today now more than ever. The recent global economic crisis in 2008 and its lingering effect have triggered the need for debt relief and debt consolidation programs for both consumers and businesses.

    Data showed that many working people are drowning in personal debt, facing a mortgage crisis with no end in sight, personal bankruptcies are at historic levels, and many find themselves still without a job. Debt relief providers today offer many programs and services to help those who are struggling with debt to their debt burden and establish a road map for getting out of debt.

    Debt Consolidation: Most Readily Available Debt Relief
    Debt consolidation is one of the oldest debt relief programs on the market. Easily and readily available in the country, this debt relief program simply involves the combining of multiple existing loans payments into one. The reasons for this can be as simple as having only one monthly debt payment to manage, or it could be to obtain a lower interest rate, a fixed interest rate, and/or the waiving of late fees and penalties. Debt consolidation can often be arranged with the help of a consumer credit counselor.

    Debt consolidation loans go further than debt consolidation by actually taking out a new loan to pay off existing loans. This debt consolidation loan often comes in the form of a home equity loan. Consumers need to be cautious and well-informed when it comes to debt consolidation loans, however. Home equity loans are very often used to pay off credit card debt. This credit card debt is unsecured debt. With home equity loans, what actually occurs is the exchanging of unsecured debt for secured debt (a mortgage).

    Debt Settlement: The Newest Form of Debt Relief
    Debt settlement is one of the newest debt relief programs. This debt relief program is also known as debt negotiation and debt arbitration. Debt settlement is an aggressive program aimed at eliminating large amounts of credit card debt through negotiation, thus allowing a fast track repayment of the little remaining debt. Debt settlement has been proven effective for unsecured debt such as credit card debt and medical bills, and in many cases can eliminate up to 50% of this unsecured debt.

    Consumers have options today. It's recommended that a person consider all debt relief programs and services before deciding on a program that fits their needs.

    Consumer advocate National Debt Relief Program offers a free debt relief evaluation which can be taken advantage of.

    Article Created: 2013-10-21
    Article Updated: 2013-11-13

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