Debt Consolidation Web - Debt Relief Programs

Debt Relief Programs

Just the Facts, Ma'am

Here are some interesting facts about debt (in particular, credit card debt):

In 2004, the average household carried $9,312 in credit card debt
The average APR on that debt was 14%
It would take 13 years to pay of $9,312 in debt if you only pay the required monthly minimum each month (which is typically 4% of your balance) and stopped using your cards
The total amount of interest you will have paid in the end is $3,778.81, bringing the grand total to $13,090.81
According to the American Banker's Association, 4.81% of all accounts are past due by 30 days or more. We're a nation in need of credit card debt relief!

From these statistics, it's apparent that people need to look into debt relief programs. Sure, you can continue to make the payments on your own, but the numbers don't lie. Do you really want to spend that much on interest? Can't you think of better things to do with that money? Sure you can! So go out and research some debt relief companies today!

Debt Relief Programs to the Rescue

The way most debt relief programs work is by getting your interest rates reduced. Generally, you end up paying single-digit interest, in fact. The result is that you can be out of debt in five years or less. Some debt relief programs, like student loan debt consolidation, debt consolidation loans and debt consolidation mortgages just give you essentially a loan to pay off your unsecured debts, and the interest rate on the loan is much lower than what you were paying before. Debt consolidation is a little different. Through this debt relief program, a debt relief counselor negotiates with your creditors to get your interest rates lowered, and in some cases, past fees removed. You then pay one monthly payment to the debt relief company at a low interest rate, which they distribute to your creditors. Debt settlement focuses on reductions of all your balances all the way around. In fact, it can knock 60-80% off what you owe. (It will effect your credit though.) Here are some qualifications of these debt relief programs:

To get a debt consolidation mortgage, you need to be a homeowner. If you are, this is most likely your best option.
To qualify for student loan debt consolidation, you need to have at least $10,000 in student loan debt.
To qualify for a debt consolidation loan, you need to have enough collateral to cover the amount of the loan.
To qualify for debt settlement, you need to have access to a lot of cash because if your creditors agree to this, they want to be paid right away.
Anyone can qualify for a basic debt consolidation plan. It's the "one-size-fits-all" of all debt relief programs.

As you can see, when it comes to debt relief programs, there's truly something for everyone.

About Us | Contact Us | Site Map | What's New | View as RSS