Debt Options

A realistic budget plan is what all these options should begin with, and takes into account all your basic necessity expenses, monthly minimum payments, total debt, and your income. You can determine the amount you can comfortably afford to use every month to pay off your debts after your budget plan takes away the basic necessity expenses from your income. You can choose to do this on your own or allow a financial expert to help you with it.

There are various professional debt relief options for overwhelming debt

Too Much Debt

Too much debt can lead to all sorts of problems if you bite more than you can chew and it becomes unmanageable. Most Americans have some level of debt, including a combination of mortgages, student loans, credit card bills and personal loans

Poor Spending

Behaviors are changed almost instantaneously, once we show how money works. Spendthrifts are psychologically in a place when they can’t control themselves and spend their money poorly because they simply don’t know what they’re doing is bad

Use Discipline

Use discipline, reasonable spending expectations and the goal of paying off the debt every month when you’re going to use a credit card. At the least, make more than the minimum payment and don’t saddle yourself with more unneeded purchases

Control Finances

Everyone thinks they can control their finances. One must avoid things like payday loans, car title loans, rent-to-own loans and no credit check items because each of these available quick fixes will only worsen your situation

What Does Debt Options Mean?

Debt options refers to debt relief/help options through which a debtor finds assistance to get on track to eliminating debt and finding financial freedom. Some people have the mental and disciplinary prowess to choose and handle debt relief on their own, but experienced debt professionals can better negotiate lower rates with lenders, refinance homes, or create budgets that keep you on the right track. Debt relief companies generally work only with unsecured debt, but there are debt relief options for secured debt as well. Debt relief programs implement a debt plan that will guide you to financial freedom. There are several established debt relief options available to consistently help the average debtor reduce or even get rid of debt in a realistic strategy completely workable and doable to the debtor. The most important thing is to ensure to complete whatever debt relief option you set out to do, or else you will spend forever in debt. The best debt options for a particular debtor are determined by the type of debt, income and monthly expenses.

Start New Financial identifies the best debt relief option for you that you agree with and is also acceptable to your creditor. Your credit counselor negotiates with creditors on your behalf to determine the lowest amount of your monthly payments. The options of debt repayment includes both secured and unsecured debts. There are occasions where a debtor becomes enamored with a specific debt relief option that either she/he is unqualified for or is unacceptable to the creditor; the debtor may believe it to be the best option with the best savings. But reality turns out a different verdict once the debtor’s entire financial and personal history are considered, including who the creditors are.

What are the various types of options for debt relief?

A realistic budget plan is what all these options should begin with, and takes into account all your basic necessity expenses, monthly minimum payments, total debt, and your income. You can determine the amount you can comfortably afford to use every month to pay off your debts after your budget plan takes away the basic necessity expenses from your income. You can choose to do this on your own or allow a financial expert to help you with it.

The different types of debt help options include:

  • Credit Counseling
  • Debt Consolidation Programs
  • Debt Consolidation Loans
  • Debt Settlement Programs
  • Bankruptcy
  • Credit Card Debt Relief
  • Student Loan Debt Relief
  • Tax Debt Relief
  • Debt Management
  • Deferment
  • Mortgage Debt Relief
  • Paying the Monthly Balance
  • Auto Loan Debt Relief
  • Payday Loan Debt Relief
  • Medical Debt Relief
  • Federal Government Debt Relief Programs
  • Federal Student Loan Repayment Plans
  • Loan Modification
  • Public Service Loan Forgiveness
  • Fresh Start Program (aka Fresh Start Initiative) for IRS Tax Relief
  • Home Affordable Refinance Program (HARP)
  • Forbearance
  • Debt Forgiveness
  • Workout Arrangements
  • Settlement Agreements
  • Voluntary Surrender
  • 401(k) Loans and Lines of Credit
  • Cancellation of Debt
  • Mortgage Forgiveness Debt Relief Act of 2007 Extended into 2018
  • Refinancing

However, apart from debt forgiveness, most debt relief options primarily fall under a branch of one of the following five (5) options for debt relief:

  • Debt Consolidation Loans
  • Debt Settlement
  • Debt Management
  • Bankruptcy
  • *Paying the Monthly Balance

On this very same website of ours, we have provided you more information on this subject matter in our web page titled Different Types of Debt Relief and the Right One For You. Please read it. Thank you!

Make a firm decision to take action and follow it through to completion! Consolidating debt is the most common and popular strategy used. A debt management program or debt consolidation loan is supposed to accomplish two things: the amount of interest you pay on your debt should be reduced by it and it should leave you with just one monthly payment that is more in line with your means and income. You will rid yourself of higher interest rate debts with simply consolidating your debt into a manageable account. A whole bunch of stress and anxiety associated with your debt problem is removed from your life by the stability of knowing that you have an affordable monthly payment that will eventually eliminate your debt.

Various forms of debt consolidation and debt consolidation loan options include:

A Balance Transfer Credit Card

For a promotional period of typically 12 to 18 months, a balance transfer credit card either charges no interest at all or a reduced rate of interest. This is why it is ideal to consolidate all your other higher-interest credit card debt and transfer it to a balance transfer credit card, and where/why it got its name. However, most credit card companies do not allow you to pull this stunt with their own debt; for instance, if you owe Citibank higher interest credit card debt and they are having a balance transfer credit card promotion, they will not allow you to transfer that debt to them, only debt from other banks and companies.

A Debt Consolidation Loan

These loans leave you with just one monthly debt payment; you are provided a large amount of money, usually by a bank, credit union or online lender, to pay off multiple debts.

A Debt Management Plan

This option typically includes startup and monthly fees and often takes three to five years to repay the debt, but it combines several debts into a single monthly payment at a lower interest rate than most loans or credit cards.

A Home Equity Loan

This option turns what might have been an unsecured debt into a secured one, thereby putting you at risk of losing your home if you don’t keep up with the payments. Here, eligible homeowners get a loan based on the equity in their home to pay off their other debts.

A Retirement Account Loan

With this option, people take out some money from their employer-sponsored retirement account or savings account to pay off their debts. It is still a loan, so you’ll owe taxes and penalties and have less funds for your retirement if you can’t repay it.

One of the advantages of debt relief options is that it is good to have options in life, especially when you are in debt and need help – so you generally are sure to find a fit. The advantages of debt relief programs are that they offer different professional financial assistance that usually help debtors use money management strategies to reduce their total debt to be repaid, interest rates are reduced, and also their monthly payments will be much lower than what they were currently paying. You are able to find breathing room, some peace, and reduce some stress.

The primary disadvantage of debt relief help options is that just about every one impacts your credit score negatively. Results are not guaranteed and the charges against you increase if the creditors are not willing to negotiate. So even if the entire debt is not settled, this will lead to extra charges. However, it is extremely rare that a creditor is unwilling to negotiate a delinquent account.

Advantages of Debt Relief Options

One of the advantages of debt relief options is that it is good to have options in life, especially when you are in debt and need help – so you generally are sure to find a fit. The advantages of debt relief programs are that they offer different professional financial assistance that usually help debtors use money management strategies to reduce their total debt to be repaid, interest rates are reduced, and also their monthly payments will be much lower than what they were currently paying. You are able to find breathing room, some peace, and reduce some stress.

Disadvantages of debt relief help option

The primary disadvantage of debt relief help options is that just about every one impacts your credit score negatively. Results are not guaranteed and the charges against you increase if the creditors are not willing to negotiate. So even if the entire debt is not settled, this will lead to extra charges. However, it is extremely rare that a creditor is unwilling to negotiate a delinquent account.

*Unlike the other listed options, Paying the Monthly Balance, per se, is not truly a debt relief option. What it is is a true commitment to not miss any payments on your required monthly minimum payment and to make the maximum effort every single month to try and add to it as much as you can every time, so you won’t have to wait as long to become debt-free. The purpose of this is to turn around the irresponsible pattern of becoming delinquent with missed payments and to not have the bulk of the capital of your payment (if not all) go just towards the interest and not to the principal balance of your debt- so you won’t have to wait some 27 years to finally taste financial freedom. This is the recipe that debtors whose debts become overwhelming were missing and thus led to it being unmanageable. There is nothing complicated about this and is so pragmatic. Having such a disciplined and determined way of wholeheartedly paying off your debt on a monthly basis is what this is all about. The goal here is to NEVER miss a payment and to pay off as much extra money every month over your minimum payment requirement as possible.

The great thing about this option is that high interest rates and late payment fees will not burden you and you bump into financial liberty sooner than what you had signed up for. It educates and indoctrinates you into being a more responsible person. Your new MO will be maintaining the great new habit of paying on time, which will provide insurance to your credit score from being hit. Remember to always add to the minimum whatever extra funds each month that you have left over, every time you can afford to pay more than the minimum, or else it is gonna take you a really long time to finish paying off all your debts. This is why it is so important for you to keep a good budget plan that you stick to, so you can increase your ability to pay, instead of needlessly overspending recklessly. You always have to look into your expenses to see where you can save further. You must particularly focus on first paying off your high interest rate debts with a higher amount than the minimum requirement. Great job! You can and will do it!

Resolve Your Debt by Starting Your Journey to Financial Freedom Now! Just Call Us!

Start New Financial offers you all the very best alternatives to bankruptcy that are wonderfully individualized to perfectly fit all your needs. You become debt-free quicker and for less, saving you so much time, money and stress, while your credit score isn’t hit as hard. Your Financial Freedom is HERE!

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