Who is Eligible for Debt Relief Programs?

Written By Mary Beth Eastman
Last updated December 28, 2019

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Personal Finance
August 1, 2019

Simple. Thrifty. Living.

Whether young or old, many people can find themselves overwhelmed with credit card debt, personal loans and other debts. This often happens because you underestimated the overall cost of these debts. Or, it could be because your financial situation changed due to medical bills, a job layoff, or another unexpected occurrence.

A debt relief program may be necessary to begin again and raise your credit score in the future. Knowing the guidelines lets you find out if a debt relief program is the answer to your financial problems.

A debt relief or debt settlement program consolidates your unsecured loans and other debts into one monthly payment. They negotiate with your creditors to purchase your debts at a lower cost to them. They have great experience in doing this.

The creditors typically agree because they know you’re unlikely to pay the debt in full. They would rather get some of their money back, rather than none. The program is then able to charge you one monthly payment that is lower than your current multiple payments.

These experienced professionals can also negotiate with your creditors to waive certain fees. They can also lower your interest rates. This provides you with financial and emotional relief since you can make a more manageable payment each month.

There are many debt relief programs available. For the most part, their guidelines are quite similar. These include:

  • Provide documents to prove your debt. This includes credit card and bank statements. For some debt relief programs, you must have at least $5,000 to $10,000 in debt, although some programs will help you with debts as low as $2,500.
  • Prove that you can’t afford to make the minimum payments on your debts each month. You must provide the representative with proof of all your income.
  • Prove that you are willing and able to make a reasonable payment each month toward decreasing your total debt and eventually raising your credit score.

You must still pay off a bulk of your debt with a debt relief program. However, the total amount you owe decreases. The counselors will educate you about making wise financial decisions in the future. They’ll also provide you with a telephone number to give your creditors if they start harassing you about debts you owe.

No one wants to be overwhelmed with financial stress; a debt relief program enables you to pay off your debts and obtain a fresh start to gaining control over your finances in the future.

You can get started today by checking out  top debt settlement companies compared side-by-side. Two of the most popular services are Freedom Debt Relief and National Debt Relief, while Accredited Debt Relief is our top-rated service.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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