Debt Relief: Understand Your Options and Their Consequences

Household debt is still climbing in the U.S., with last year’s figures topping $13.5 trillion and putting the average household debt at $6,829. The high-interest rates make household debts challenging to pay off for many consumers, with as much as 1 in every 11 Americans with credit card debt saying they don’t think they will ever be free of debt.

Debt Relief Can Help

If you have debt, one way to tackle the problem is through debt relief programs. People with significant debts who don’t have the experience or knowledge to put together a repayment plan with the creditors will benefit from hiring the services of a debt relief attorney in Phoenix, AZ. By talking to a professional, you’ll know your options and the consequences that come with them.

Debt Relief Options

Debt relief programs involve a number of options. One arrangement includes refinancing your debt or mortgage to a lower interest rate, which would allow you to pay back the monthly dues much easier. Debt consolidation is another form of debt relief, which combines several loans with high-interest rates into a single loan with a lower interest rate. Lumping all the debts into one also makes it more convenient for you to pay off all the debt since you only need to keep track of one payment and monthly interest rate each month.

Debt consolidation does come with a caution, namely, make sure you chose an accredited debt consolidation company. Many companies advertise that they are a debt relief agency, while that may be accurate in the sense that they will help with your debt, they are not the same thing as debt consolidation company such as Money Management International. Other debt relief agencies will require you to make monthly deposits into an account and once enough funds are accumulated, they will negotiate settlements with individual creditors. In the interim, the balances owed on their debt rises, and there is no guarantee that the creditor will agree to a settlement. In the interim, the debt relief agency will continue taking out fees for their services.

A debt relief company such as Money Management International will review your ability to pay back your debt. They have agreements with major credit card companies that have agreed to such repayments. In some cases, late fees may be forgiven, or interest rates may be reduced. If, however Money Management International finds that you do not have the financial ability to pay your debt, they will recommend a bankruptcy.

Find Out If It’s Right for You

Debt relief programs come with pros and cons, so it’s essential that you know both the benefits and risks of each one. If you find yourself facing any of the following conditions, then debt relief is a sound option for you.

• You have a sizable unsecured debt. Unsecured debt includes credit card debt, medical bills, and personal loans. If the debt is considerable that you have no hope of making ends meet, even if you cut off your spending drastically, debt relief is right for you.
• You owe more than you earn. If your debt is half or more than the equal of your gross income, you need professional help.

Find out how debt relief programs work in your favor, and which one is right for you. Learn more about your options when you make an appointment with a debt relief attorney in Phoenix, AZ, by calling the Law Office of Larry Karandreas today. With careful consideration, you’ll have an easier time choosing the option that’s right for your needs and situation.

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