Texas Debt Elimination Programs

Texas residents who are struggling with debt have access to debt elimination programs to help them turn their financial situations around. If you need assistance regaining control of your finances, you can select an available program through a non-profit or for-profit credit counseling agency or company to help you meet your goals. You can check with the Texas Office of the Consumer Credit Commissioner to locate licensed agencies in your area.

Debt Consolidation Progams

One option for Texas residents is debt consolidation that involves taking out a new loan to pay off existing debt and being left with only one monthly payment. This type of program requires that you pay interest on the loan. The longer you take to pay back the loan the more the monthly payment will shrink, but the more the interest you will pay over the life of the loan. That could add up to a lot of money.

Debt Management Programs

If you want help managing your debts and budgeting, you may consider credit counseling. Credit counselors can evaluate your spending and saving habits and, if necessary, place you into a debt management program designed to consolidate all of your debts into one monthly payment. In this program, the credit counselor approaches your creditors and negotiates reduced interest rates on your behalf to help you pay off the debts faster. The counselor takes your monthly payment and distributes it among your creditors for you. Some Texas credit counseling agencies charge initial and monthly fees for their services, so you should find out about the requirements for the agency you choose. You should also ask about the length of your repayment plan and whether you can get monthly statements to track your progress.

Debt Settlement Programs

Texas residents also have access to debt settlement programs to help eliminate debt. This program involves paying a debt settlement company each month instead of paying your creditors. They will collect your monthly payments and when you have enough saved, the debt settlement company will contact your creditor and negotiate a lump sum settlement payment at a reduced amount to pay off your debt. You should be careful when selecting this program because your credit will decline and collection agencies will pursue you while you are not paying r creditors directly. You should also be aware of the fees charged in debt settlement programs.