Monday, July 13, 2009

Facts About Debt Relief

Debt relief can be achieved in a number of ways. The purpose of debt relief is to make a person's budget more manageable and affordable if they are overwhelmed with too many obligations. If you ever reach a point where you cannot comfortably pay your debts from month to month then you may need some form of debt relief.

Manage Debt

    A debt management program is one way to achieve debt relief. This program helps you to lower your interest rate and monthly payments.

Settle Debt

    Some people will call their creditors to settle their debts. Creditors will sometimes settle for 45 percent of the balance which provides debt relief.

Wage Earner Plan

    If you enter a chapter 13 bankruptcy wage earner plan, this is a form of debt relief. Your debts are paid by the trustee after you send in a lump sum payment. Your interest rate, balance and monthly payments are all lowered.

Refinance

    If you refinance your mortgage and get a lower rate of interest, this is debt relief. Your payments will decrease and you pay less interest over the life of the loan.

Consolidate

    A consolidation loan helps you achieve debt relief by paying off high interest credit cards. You should be able to receive a lower monthly payment overall.

Function

    Debt relief helps you save money by lowering your interest rates, consolidating debt, waiving finance charges and rescheduling loan balances.

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