Do Debt Relief Programs Work?
Getting into debt is very easy for people and doesn’t require much effort at all; you simply rack up your credit card bill and not pay it on time or you take out a loan and pay interest on it. The actual difficult task is to get out of debt, which becomes next to impossible for people when they have a fixed income and also have to pay interest. Unexpected financial hardship is able to sneak up on anyone at any time. Consider the loss of a job or a cut back in hours. In this case, there are various debt relief programs that can be used as they are primarily designed for helping people who feel as if they are drowning in debt. When people are in a position where they have to pay a large amount of debt, they find promises made by debt management and relief companies very attractive. However, they can be scams so people have to be wary of them.
Many debt relief companies in the market that are established for aiding people with their debt woes offer debt settlement programs as their main option. In this particular program, the company will negotiate with an individual’s creditor on their behalf. They negotiate with the creditors and get them to accept an amount that’s less than the total sum if a lump sum payment is made. Then, the client of the company is required to give them the said lump sum amount and they will deal with the payment to the creditor. A percentage of the money will be kept by the company and the rest will go to the creditors.
There are also credit counseling companies, which can aid people in reducing their debt through a debt management plan. In this plan, again people give credit counseling companies the responsibility of negotiating with their creditors for reducing the interest rate that has to be paid on the debt. This is relatively a slow method of debt relief. Monthly payments are set up by the individual, which are sent to the credit counseling service. Then, the appropriate amount of money will be sent by the credit counseling company to each respective creditor. A fee is taken by the company from each payment in return of providing this service. It will take individuals several years to pay off their debt with this type of plan.
Furthermore, individuals also need to exercise caution because there are a lot of companies out there that promise debt relief, but are nothing more than scams. They will charge upfront fees and will not fulfill the claims they have made. Therefore, when people are signing up with a debt relief company, they should ensure that it is legitimate and has a good reputation in the market rather than a negative one.
CuraDebt, a debt settlement firm, is here to help you with all of your debt related needs. We have a team of debt relief professionals who are well equipped to help you with your unique circumstance. Contact us today for your free consultation. 1-877-850-3328