National Debt Relief offers consumers who are drowning in debt alternate ways to become financially stable without filing for bankruptcy. Their customer service agents are trained to show compassion while helping you through the toughest times.
Its program involves creating tailored plans to educate customers to improve their financial help. More importantly, they involve negotiating settlements for delinquent accounts, costing the customer as little money as possible.
So, why is this a better choice than bankruptcy or debt consolidation? Continue reading to find out!
What Does It Mean to Settle Your Accounts?
When a past due against is charged off, the original creditor or lender has sold it to a third party collections agency. If this happens to you, you will notice a significant drop in your credit score of up to 120 points.
At this time, the collections agency will contact you via mail or phone to let you know they now have your debt. They will also use any information you share with them to attempt to have you set up a payment arrangement.
In many cases, debtors can’t afford to pay the balance no matter how much it has hurt their credit score. Otherwise, they would have paid it when it was still in the hands of the original creditor.
In these instances, the collections agency will suggest settling the account. If you agree to settle the account, it means you are paying it off for a lesser amount than what’s actually due. The agency can no longer contact you to make payment arrangements after that point.
The proposed settlement amount is usually the principal balance. This is the amount of the initial charge without the late fees, interest, or returned payment fees that had been applied to the balance over time.
There aren’t many agencies that will allow you to negotiate the payment terms. This is where National Debt Relief can help.
They can strategically negotiate with your creditors to bring the balance you owe down to something more affordable. Your debts will be cleared without you having to file for bankruptcy or go the debt consolidation route.
Why Bankruptcy Isn’t Your Best Option
If you have a ton of bills you can’t afford to pay, you might think bankruptcy is a great option. And when you look at the benefits of bankruptcy, it isn’t very hard to understand why people are quick to consider it.
The advantages of bankruptcy are:
- You will void your legal responsibility to the debt
- Your creditors will stop calling and sending you mail
- You can no longer get sued
- You don’t have to pay taxes on those debts
The disadvantages of making this decision, however, are much greater than the advantages.
For starters, after filing for bankruptcy, you won’t be allowed to open any new credit accounts. You can’t even use a new credit card to work on bringing your score back up. These new lines of credit also include a mortgage and financing a new car.
Additionally, you will have a drastic drop in your credit score, with the bankruptcy haunting your credit report for seven years. Bankruptcy is also just as expensive as paying off your debts.
You can spend thousands of dollars to hire a bankruptcy attorney. You can also be responsible for up to 50 percent of your debts if a Chapter 7 bankruptcy isn’t granted.
Debt Consolidation Isn’t All That Great Either
Many people have used debt consolidation loans to successfully get out of debt. These loans are appealing to those who have several open accounts floating around.
Of course, it’s simpler to pay one bill than to keep up with a bunch. Keeping track of several due dates throughout the month can be a pain.
It also makes it easier to forget accounts and have them fall past due. However, debt consolidation loans usually have very high interest rates.
They can make your debts even more expensive than they already are. If this is an option you’re considering, take some time to do a bit of math first.
Find out if your creditors will allow you to reduce your interest rates before you do anything. In a lot of cases, this decrease in charges can help you pay your debts down without additional help.
Debt consolidation loans are usually only helpful for consumers who have high credit scores. If your credit score is low, chances are the interest you will have to pay will set you back.
Additionally, if you can’t prove you have a stable income like if you’re a freelancer or live mostly on tips, you won’t be approved for the loan at all.
How National Debt Relief Helps
National Debt Relief created a program that outweighs the cons of bankruptcy and debt consolidation. Our program is tailored to fit you as an individual. Not everybody’s finances or goals are the same and you deserve a personalized approach.
Your monthly payments will be lowered to manageable amounts without loads of interest. Also, you won’t incur the maintenance fees that many debt management companies charge for their services.
This means the money you pay will go toward paying your debts down. They mainly include unsecured debts like credit cards and medical bills.
The process is easy to begin. You will fill in a form online or simply call the toll free number for a consultation.
A debt counselor will hold your hand through the process and guide you through recovery. We will also teach you about budgeting and finances so that you don’t make the same mistakes in the future.
We understand how burdensome it is to carry a large amount of debt. No one wants to be bombarded by bill collectors constantly. But when you’re in this position, it might feel like there is nothing else you can do.
National Debt Relief is accredited by both AFCC (American Fair Credit Council) and IAPDA (International Association of Professional Debt Arbitrators). We know everything there is to know about clearing debts and staying out of it.
Contact us today for a free consultation. We’ll lead you along the debt-free path!