• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Boy Sets Fire

Lifestyle Blog

  • Home
  • About
  • Blog
  • Humor
  • Lifestyle
  • Money
  • Marketing
  • Business
  • Travel
  • Contact

Understanding Debt Relief Options and Their Consequences

April 22, 2020 / by Andrew / Leave a Comment

You’re overwhelmed with debt and don’t know what to do to get out of it. Debt relief could be an option for you.

When considering debt-relief options, it’s important to understand that this option isn’t right for everyone. You could be eligible for debt relief through bankruptcy, debt management, debt settlement, and debt consolidation.

Understanding the consequences of debt relief options is the first step in deciding if debt relief is right for you.

What Is Debt Relief?

Debt relief can reorganize your debt in any shape or form. This can be clear the debt fully or partially. Debt relief can work for any indebted party, including individuals, small businesses, large companies, and municipalities.

Debt relief can help you get back on your feet more quickly. Wiping the debt altogether can be done when bankruptcy is filed. Debt relief can also change your interest rate or payment schedule or persuade creditors to agree to accept less than what is owed.

When Should I Seek Debt Relief?

Debt relief options are not an easy fix for your problems. In certain circumstances, you should consider bankruptcy, debt management, or debt settlement. These circumstances include if you have no hope of repaying unsecured debt within five years or if the total of the unpaid unsecured debt equals half or more of the gross income.

If there is potential to repay unsecured debts, you could try a do it yourself plan. Repayment should be doable within five years. This type of debt relief could include a combination of debt consolidation and speaking to creditors about budgeting.

Debt Relief Consequences

Unfortunately, the debt relief industry has a lot of scammers you need to be wary of. These scammers want to take even the smallest amount of money that you have. Some who enter debt relief programs never finish them and could end up with debts that are even bigger than what you began with.

The National Debt Relief Program is a debt restructuring company that can help you understand the pros and cons. You can learn about this program and how easy it is to join.

There are certain things you need to consider before agreeing to a debt relief plan:

  • What do I need to qualify?
  • What fees will I have to pay?
  • What creditors are being paid?
  • How much are creditors being paid?
  • What are the tax implications?

Debt relief could encourage reckless behavior because of irresponsible parties. Those who have been relieved of their debt may believe that creditors will always bail them out.

Another disadvantage includes prolonging the debt payment. Debt relief measures generally impact credit scores negatively.

Look At Debt Relief Options For You

Now that you have an understanding of debt relief and its consequences, you can start finding the right debt relief options for you. The best debt relief options will get you the most out of what you need.

To read more on topics like this, check out the Money category

Filed Under: Money

Previous Post: « 8 Tips to Improve Your Customers’ Digital Banking Experience
Next Post: Most Common Reasons Why Home Buyers Can’t Qualify for a Mortgage »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

About Us

Hey guys it’s Andrew! I am a writer, a blogger, and a curious human being full of ideas. I remember as a teenager going to my local store to grab a freshly published magazine about the ins and outs of the online business world. Read More…

Facebook

Boy Sets Fire

Lets Connect

  • Facebook
  • Google+
  • Instagram
  • Twitter

Newsletter

Best T-Shirt Subscription Boxes to Go For in 2021

Subscription boxes have gained popularity and now they are offering the best shopping experience full of excitement. The idea behind a subscription box is to purchase a monthly or quarterly themed subscription box that will arrive at your doorstep. Some people purchase subscription boxes just because of the elevated shopping experience, and others do it […]

Make Yourself Feel Great Both Inside and Out

Around the world, people are sheltering at home as governments ask us to stay inside, socially distance ourselves, and practice other safety precautions. As we do our part to minimize the spread of COVID-19, the sudden change in routines can leave us feeling discouraged and disconnected. If you’re feeling stressed out, you’re not alone. In […]

What is Retinol, and Should You Use It? The Top Myths about Retinol Answered

We all know what our skin needs: proper care and nutrition, and the proper products that can enhance our routine as well. Cleansing is vital, for example, and so is moisturising. You should also exfoliate, not with harsh scrubs, but with the right toners and cleansers. But here’s another thing you can do for better […]

How You Can Prepare For Your Long Distance Move

Long distance moves can be challenging to prepare for, which is why you’ll want to make sure you have a solid plan in place. If you keep this advice in mind, you’ll be able to avoid common problems and quickly settle into your new home. Start Planning Your Move Right Away One of the biggest […]

White Glove Logistics: A Challenging & Rewarding Career

If you have an interest in electronics and computing, it could be that white glove logistics is for you. In case you are not sure what the ‘white glove’ aspect means, this is a term used for working with hi-tech equipment. There are many industries that rely heavily on white glove logistics, including: Medical & […]

Footer

Lets Connect

  • Facebook
  • Google+
  • Instagram
  • Twitter

Recent Posts

  • Best T-Shirt Subscription Boxes to Go For in 2021
  • Make Yourself Feel Great Both Inside and Out
  • What is Retinol, and Should You Use It? The Top Myths about Retinol Answered
  • How You Can Prepare For Your Long Distance Move
  • White Glove Logistics: A Challenging & Rewarding Career

About Us

Hey guys it’s Andrew! I am a writer, a blogger, and a curious human being full of ideas. I remember as a teenager going to my local store to grab a freshly published magazine about the ins and outs of the online business world. Read More…

Facebook

Boy Sets Fire

Copyright© 2021 · boy sets fire