Different Debt Help Services for Borrowers

If you are struggling with debt, then consider acquiring a debt solution service that’s best for you. In this post, let us explore the different types of debt relief services that can assist you.

Credit Counseling.

Debt conceptA credit counselor who is qualified to assist a person in financial management. He/she will talk to you about your situation to determine the root of the problem. Working with a credit counselor may just be what you need to regain control over your spending and prioritize debt repayment.

Debt consolidation.

For borrowers who are managing multiple debts, debt consolidation can be an option. There are 2 methods of consolidation. The first is debt consolidation loan and the other is by enrolling in a debt consolidation reduction program.

Through a debt consolidation program, a borrower can get help from a debt consolidation agency to supervise debt repayment. This means that the agency will be in charge of distributing your payments to the right creditors. With this set-up, highest-rate debts are paid off first to avoid further debt build-up and to speed up the repayment process.

Another approach to consolidation is if you take out a loan to completely pay off your deficits. It is the fastest way to get out of debt and stop continuous accumulation due to interest rates and late penalty fees. A debt consolidation loan can be secured or unsecured. However, if you need to pay off a large amount of debt, submitting collateral gives you more chances to acquire a bigger loan amount. On the other hand, an unsecured loan can be used for consolidating smaller deficits.

Debt Settlement.

A debt settlement is where negotiation takes place between the borrower and the lender. The debt settlement agency or credit counseling agency may negotiate on your behalf if you choose to acquire this service. The goal would be to reduce the original sum of debt so that the borrower can get out of debt at the soonest possible time.

Debt settlement can reduce your bills by as much as 60% or higher. However, your creditor will expect instant payment as soon as an agreement has been reached. The borrower can also take out a loan from the debt consolidation agency. However, it is important to make sure that you are dealing with a legitimate agency.

Credit Card Debt Consolidation.

For people who are dealing with personal credit card debt, a balance transfer credit card that gives zero interest rate is a great tool. Transfer over your outstanding balances from your high rate credit cards to reduce your costs. Under the New Credit Card Law, Issuers cannot offer a promotional rate that will last for less than a 6-month period so that will give credit cardholders at least 6 months to pay off your balances interest-free.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

We will be happy to hear your thoughts

Leave a reply

NHBS Inc © 2024

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

Business Loans

Consumer Loans

New Horizon
Logo
Enable registration in settings - general