How Regular People Are Resolving Mountains Of Credit Card Debt
Article Summary:
- Credit card debt amongst Americans is at an all-time high as inflation increases and interest rates soar.
- 2 common options for resolving high-interest debt are Debt Consolidation and Debt Settlement.
- Trusted companies like Freedom Debt Relief have debt specialists who help their customers find the best solution based on a number of unique factors.
Paying off mountains of credit card debt can feel impossible. Even if you’re making the minimum payments each month, the interest on the unpaid balance continues to grow, making it difficult to pay off your debt no matter how hard you try.
The longer it takes you to pay off your balance, the more you spend on interest. This process can significantly damage your financial stability, preventing you from saving money or reaching big life milestones like buying a house or retiring.
If you are one of the many Americans stuck in this vicious cycle of high-interest debt — it could be a good time to explore your debt relief options.
Below are 2 common debt relief options regular people are using to escape mounting high-interest debt and how to get started with a debt relief company that can help you choose the best option for your situation.
Option 1: Consider a debt consolidation program to resolve your debt
Debt consolidation is a potential option for people seeking relief from overwhelming high-interest debts and could help you get rid of your debts faster than making minimum payments and at a potentially lower interest rate.
Debt consolidation programs allow you to roll all of your debts into one single debt for which you make one payment each month using funds from a new line of credit — such as a debt consolidation or personal loan. However, this option only makes sense if you qualify for a lower APR than what you are currently paying on one or more of your existing debts.
Beware of loans that lower your monthly payment by extending the amount of time you have to repay the loan. Although this might make your monthly payments more affordable in the short term, you could ultimately pay more in interest in the long run.
A debt relief company such as Freedom Debt Relief can help you decide whether debt consolidation is the right choice for you, and can guide you through the entire process.
Option 2: Settle your debts for less than what you owe
When there are no other options available and you don’t wish to turn to bankruptcy, debt settlement may be the best — and only — option when it comes to taking care of overwhelming credit card debt.
Debt settlement allows you to negotiate with creditors to settle your debts for less than what you owe. If your creditors agree to a debt settlement, any remaining balance is canceled.
You can pursue debt settlement on your own; however, the process can be complicated and timely which is where a debt relief company could come in to negotiate your debts on your behalf. They may also help streamline the process and provide the legal resources to better position your case.
If your creditors agree to settle, the company will handle the repayment process for you. You’ll be responsible for depositing a monthly payment in a secured account — usually one set up through the debt settlement company — that you control and have access to.
Keep in mind that once you start the debt settlement process, you will voluntarily stop making payments to your creditors — so you can expect your credit score to take a hit. However, once you complete the program, you will be in less debt or even debt free and can begin rebuilding your credit score with a clean slate.
To find out if debt settlement is the right solution for you, Freedom Debt Relief offers free debt consultations to help you make the right choice.
How to get started?
A debt relief company could help you navigate the complicated process of getting rid of debt.
Freedom Debt Relief is one of the leaders in the space with over 850,000 clients enrolled to date. They have resolved over $15 billion in debt since 2002, and have a 4.6/5 star rating from Trustpilot.
To get started, click here to fill out their short form and receive a free debt consultation. After assessing your specific situation, their debt specialists may recommend the best debt relief solution for you and work with you every step of the way to potentially resolve your credit card debt for less and in less time than making minimum payments.
The information provided on this page is for educational purposes only and is not intended as financial advice.