Debt relief is when the debt one is under is reorganized into a different form to allow the debtor to comfortably pay back either part or the whole amount of a massive debt burden. There are several different forms of debt relief, including lowering the outstanding principal amount either partially or fully, reducing the interest rate on the loans due, extending the terms of the loan, and more.
Creditors are not usually willing to consider debt relief except in cases where the repercussions of the obligated party defaulting on the loan will be so severe that debt mitigation is considered to be the best alternative. Anyone that has high debt can be considered for debt relief, whether it’s an individual, small business, large organization, municipalities, and even sovereign countries.
Debt Relief in the US
It’s common knowledge that millions of Americans are currently in debt. One major cause for this is that people are making poor lifestyle choices that leave them in a terrible financial situation. Most of these decisions involve people were trying to improve their quality of life, but they ended up getting into debt.
Here are the most common types of debt Americans are dealing with today:
- Mortgage loans
- Car notes
- Credit card debt
- School debt
- Other loans
Getting Out of Debt
There are a number of ways one can find themselves in debt, but there are only a few ways to escape the burden of debt. The debt relief choices for Americans include:
- Debt settlement
- Debt consolidation
- Debt loans
Debt loans and debt consolidation allow consumers to receive a loan that can pay off all of their outstanding debt to leave them with only one debt owed.
How to Get Debt Relief
Debt consolidation is one way to get debt relief, and the money of a debt consolidation loan can be used to pay off any other outstanding debt. These consolidation loans can be either secured or unsecured. Personal loans are unsecured and it’s possible to get a personal loan with a low interest rate of 5.85% if you have good credit. These loans come with fixed terms and payments, with loan terms of between three and five years in general. One of the main benefits of this kind of loan is that you know exactly when your loan will be paid off and you’ll have debt relief.
If you don’t have good credit but are the owner of your home then you may be able to get homeowner equity credit line or a home equity loan.
Where Can I Apply for Debt Relief?
Debt relief has never been more important. Millions of people across the nation are finding it difficult to meet their financial obligations. There’s no need to worry though, as there are plenty of options available to those that find themselves in this problem. Some of the ways to get out of your financial mess including repayment plans such as debt negotiation, debt settlement, and debt consolidation.
You may also choose to apply for debt relief through the following organizations:
National Debt Relief
CareOne debt Relief Services