Debt Redemption Texas Debt Relief Exclusively Helps Texans to Resolve Overwhelming Credit Card Debt
With the cost of food, gas, housing, and just about everything we consume rising, managing your high-interest credit card debt can free up more room to cover living expenses. There are multiple, with debt consolidation loans being the least drastic and bankruptcy the most drastic, while credit counseling and debt settlement fill the gap. When deciding on an option to resolve your debt, it is essential to look at your current situation and goals.
Debt Consolidation Loans
A fixed-rate debt consolidation loan could be the ideal solution if you have a reasonably good handle on your finances but are tired of paying high credit card interest rates. This method will also ensure your payments never go up as credit card interest rates are variable and have been rising recently. You will need high credit scores and a good debt-to-income ratio to qualify because lenders want to minimize their risk and have the assurance that you can afford to repay the debt consolidation loan.
Credit Counseling Debt Management
You can get two of the primary benefits of a debt consolidation loan, including lower interest rates and one monthly payment, but without needing to qualify for a new loan. The credit counselor will have agreements with most major credit card issuers to provide a lower rate. At the same time, you make one monthly payment that is distributed to your creditors automatically by the credit counselor. While this will work with most credit cards, it will not work with many personal loans, some of which already have low rates. High-interest predatory lenders typically do not work with credit counseling agencies either. It is important to understand that this is a hardship program, and your enrolled accounts will be closed. You may not be able to obtain new debt while in the program, and your credit score will likely decrease, depending on where you stand at enrollment. However, you will be able to rebuild your credit once you are debt-free. When your debts have reached a zero balance, you will also see an improved debt-to-income ratio, increasing your ability to borrow.
Debt Settlement aka Debt Negotiation
A debt settlement plan is usually the lowest cost and shortest non-bankruptcy option. Rather than making monthly payments to your creditors, you save money in a special purpose account while debts are negotiated for less than what you owe. The debts are usually settled one at a time over 24 to 48 months, depending on your budget. Depending on the resulting settlements, the programs can go shorter or longer than estimated. Because you are not making monthly payments to your creditors, your credit score will likely go down unless you are entering the program already delinquent. The advantages are that your program payments could be less than half compared to minimum payments. Because you are resolving the debt quickly, you can rebuild your credit profile relatively soon if you take the proper steps after settling your debt.
A chapter 7 bankruptcy can wipe out your unsecured debt if you fall within the guidelines to file. For those with non-exempt assets or income above what is allowed for chapter 7, a chapter 13 repayment plan may be the only bankruptcy option. Sometimes, chapter 13 will cost more than debt settlement, and sometimes it will cost less. If you are considering bankruptcy, it is vital to speak to a bankruptcy attorney licensed in Texas. A bankruptcy may stay on your credit report for 7 to 10 years from the date it was discharged and may be a matter of public record indefinitely.
Debt Redemption Texas Debt Relief exclusively helps Texans with multiple options to resolve their debt. These options include their affiliate platform to shop for the best debt consolidation loan, credit counseling resources and their program to negotiate down credit card and personal loan debt balances. Their Texas Debt Relief program is typically 40% less than debt relief services offered by out-of-state companies. The company also works closely with a Texas bankruptcy law firm if you would like to compare bankruptcy to non-bankruptcy options. Debt Redemption can also assist Texans who are facing lawsuits from creditors.
For a free and no-obligation phone or office consultation with a Texas Debt Specialist, call 800-971-4060 or visit https://debtredemption.com