Personal Finance
October 9, 2018
By Mary Beth Eastman

Who is Eligible for Debt Relief Programs?

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 along with the high interest rates, or 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 eligibility guidelines enables you to determine if a debt relief program is the answer to your financial difficulties.

A debt relief or debt settlement program consolidates your unsecured loans and other debts into one monthly payment instead of several. They negotiate with your creditors to purchase your debts at a lower cost to them and have great experience in doing so. The creditors typically agree because they know you’re unlikely to pay the debt in full, therefore, they would rather recoup some of the loss than none. The program is then able to charge you one monthly payment that is a lower cost to you than making several minimum monthly payments to your creditors would be. The experienced professionals can also negotiate with the creditors to waive certain fees and lower your interest rates. This provides you with financial and emotional relief since you’re able to work out a more manageable payment each month.

There are many debt relief programs available to consumers, and for the most part, their guidelines are quite similar. These include:

  • Providing documentation to prove your debt. This includes credit card and bank statements from your creditors. For some debt relief programs, you must have at least five to $10,000 in debt, although some programs will help you with debts as low as $2,500.
  • The ability to 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..
  • Proving 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, but the total amount you owe decreases substantially. 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.

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