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Are Debt Consolidation, Credit Card Debt Relief Programs Right for Me?


September 14, 2012 - Chicago, IL

Debt consolidation and credit card debt relief programs and their many variations have helped millions of Americans over the years to reduce and even eliminate personal debt such as that from credit cards and medical bills. Are they right for everyone?

The stalled U.S. economy is causing financial hardships from coast to coast. The number of people filing for their first week of unemployment benefits rose to the highest level since July, in another sign of a weakness in the jobs market. Additionally, foreclosure filings rose in August as lenders in several states continued to work through a backlog of delinquencies and defaults.

Debt relief programs have become the go to option for consumers who are unemployed, underemployed, or employed yet still drowning in debt and struggling to make ends meet and put food on the table. With so many types of programs and services available today, it can be a puzzle sorting out what solution works best for each individual's unique debt situation.

Debt Consolidation -- These programs typically involve one loan that is used to pay off other loans. Debt consolidation programs are good for a few situations. If a person is paying several different loans off, budgeting may be easier if they consolidate into one loan. They'll only receive one monthly statement and make one monthly payment.

Debt Settlement -- These programs involve negotiating with a creditor to agree on a reduced balance that will be accepted as payment in full. Debt settlement is typically only an option for unsecured debt, such as credit cards, medical bills and personal loans. Debt relief providers contact individual creditors on the consumer's behalf and negotiate a reduced payoff. The incentive to the creditor is that they'll receive at least a portion of what is owed rather than having to engage an external collections company, or losing out in a bankruptcy filing.

The key for consumers is to ask questions when speaking with debt relief providers and then making an informed decision as to which approach works best in their situation.

National Debt Relief Program offers a free debt analysis which can be taken advantage of at their website:

www.nationaldebtreliefprogram.org

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National Debt Relief Program
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