By: J. Paxton, MBA, PhD
According to CNBC, Credit Card Balances have jumped to 15 year highs and dangerous levels. How are people dealing with high credit card balances, unmanageable monthly payments, and in some cases, losses of income? Some people are turning to debt relief services.
Debt relief is a process where a borrower works with a debt relief company or attorney to negotiate with creditors to reduce the amount of debt owed. This option can be an effective solution for individuals who are struggling with high levels of debt and are unable to make their monthly payments. In this article, we will explore the benefits of debt relief and why it may be a good choice for those looking to get out of debt.
Top #1 Benefit of Debt Relief: Reduce the Amount of Debt Owed
1. Reduced Debt: One of the biggest benefits of debt relief is the ability to reduce the amount of debt owed. Debt relief companies or attorneys will negotiate with creditors to reduce the balance owed, allowing the borrower to pay off their debt at a lower amount. This can result in significant savings over time, freeing up funds for other expenses or investments.
Top #2 Benefit of Debt Relief: Lower Monthly Payments
2. Lower Monthly Payments: With reduced debt, monthly payments will also be lower, making it easier for the borrower to make their payments on time and stay on track with their debt repayment plan. This can help reduce stress and improve their overall financial stability. Click here to get your workup of your current credit card minimum payments vs. your potential new payments under a Debt Busters debt relief plan.
Top #3 Benefit of Debt Relief: Improved Credit Score
3. Improved Credit Score: Debt relief can also have a positive impact on a person’s credit score. By paying off their debt and reducing the amount owed, their credit utilization ratio will decrease, leading to an improvement in their credit score over time.
Top #4 Benefit of Debt Relief: Avoid Bankruptcy
4. Avoid Bankruptcy: Debt relief can be a good alternative to bankruptcy for individuals who are struggling with debt. By settling their debt, they can avoid the negative consequences of bankruptcy, such as the loss of assets and a significant impact on their credit score. According to Financial Credit Giant Experian, Bankruptcy impacts your credit for 7 years, much longer than debt relief.
Top #5 Benefit of Debt Relief: Professional Assistance Works
5. Professional Assistance: Debt relief companies or attorneys will provide professional assistance and guidance throughout the process, helping individuals to navigate the negotiations and reach a favorable outcome. This can provide peace of mind and ensure that their rights are protected during the settlement process. Talk to a Debt Busters Personal Credit Analyst today to get your no-cost review of debt relief options that may be available.
These Top 5 Benefits of Debt Relief highlight the advantages of debt relief services as an option for high interest and high credit card payments that can become suffocating. Click here to learn more about the various debt relief programs available.
Carlo V. DeFalco
RELENTLESS Venture Studio