Debt relief is a problem that has been haunting the economy for years now. There have been times when consumers thought that their financial problems were best resolved by debt consolidation. These were often times the only options available to them. This has helped millions of people, but it has also caused other problems to develop.
If you look at the number of complaints from consumers about fraudulent companies, questionable methods, and even companies that leave no paper trail, you will start to understand why consumer debt relief programs have become very popular in recent years. With so many problems arising from the use of debt relief programs, it may seem that consumers need to think twice before they take this route.
The history of debt relief has started many years ago. With the onset of the internet and business, credit-card debt was the first thing that was created and the second thing that was used to eliminate it. Most credit card debt consolidation companies offer a wide range of services, ranging from debt consolidation to debt settlement. All of these options are helping many consumers at a time.
Consumer debt relief laws, introduced with the introduction of the Dodd-Frank Act, have played a big role in keeping consumers honest. Consumers who choose debt relief are still required to provide proof of identity and income. However, these two pieces of information are used to determine the level of debt relief the consumer is requesting.
Debt consolidation is one of the most popular forms of debt relief. Many consumers choose to consolidate their credit card bills into one lower monthly payment. Many of these companies offer reduced interest rates to those who pay off their debts early and do not use any credit cards. Many debt consolidation companies also offer services like debt negotiation and loan modification, if the consumer has fallen behind on their bills.
The use of debt settlement is another option available to many consumers. This is the least expensive way to get rid of debt but does not offer any type of relief. When negotiating a settlement, the consumer makes a specific offer to the creditor. If the creditor accepts the offer, the amount that is being offered is the amount that is going to be paid out. The best part of this method is that you can keep any remaining money from your payments and then put it toward your debt consolidation or debt settlement.
Consolidation is important because it helps consumers pay their bills and get out of debt; however, it is not the only option available. Debt settlement and consolidation are both affordable and important when it comes to eliminating your debt. It is important that you find a company that specializes in all three options, as this will allow you to see the best results in the least amount of time.
These are just some of the options available to consumers when it comes to debt consolidation or debt settlement. While you should not be intimidated by these options, if you find yourself in need of the funds you will want to find a company that specializes in debt relief.