A Straight Talk on Debt gives you the real deal on debt, straight from our employees and industry insiders. Learn more about our debt relief plans and important industry updates.
There comes a time in many of our lives where we realize we are in over our heads, financially speaking. We come to the conclusion we need to do something about our finances, but what?
There are several options when it comes to debt relief and one of them is right for you, your situation, and your family. When deciding what to do there are a few questions you should ask yourself first; your answers may help you determine what you need to do, where to turn and how to get help if you need it.
So let's get started!
If you answered yes to these four questions, you may want to consider a Do-It-Yourself approach to managing your debt.
Do-It-Yourself with Debt Payment Pro. Debt Payment Pro is a FREE tool that can help you pay down your debt. Enter simple information about your debts. Based on your debts Debt Payment Pro will calculate your possible savings. Then follow your personalized repayment schedule to pay off your debt more quickly and save on interest. It can become easy to send just the minimums and not reallocate payments to other creditors. This approach will require discipline and close attention to your payments.
If you answered yes to these three questions, you may want to consider a Debt Management Plan (DMP).
Debt Management Plan. Debt Management Plans, which are often called DMPs, are plans that allow debt relief providers to work directly with creditors to secure benefits. These benefits, which vary by creditor, typically include reduced interest rates, lower monthly payments, and waived fees such as late fees and over the limit fees.
Do you have a minimum of $7500 in unsecured debt?
If you answered yes to these two questions, you may want to consider a Debt Settlement Plan (DMP).
Debt Settlement Plan. Debt Settlement is an attractive alternative to bankruptcy for those who want to pay back at least a portion of their debt, but cannot afford the Debt Management Plan payment, and have stopped paying their unsecured creditors. With Debt Settlement, you make monthly deposits to a Settlement deposit account in an amount you can afford. You do not make monthly payments to your creditors, and your provider works to negotiate with your creditors for a less-than-full repayment. When settlements are reached with creditors, settlement payments are paid from the Settlement deposit account. There are definitely pros and cons to using Debt Settlement to pay off your debt.
If you answered yes, to these two you may want to consider Bankruptcy.
Bankruptcy. If your financial situation leaves you unable to pay back even a portion of your debt, you may want to explore whether a bankruptcy makes sense for you. We will review your situation and if bankruptcy appears to be appropriate, we will connect you with a national law firm to help walk you through your bankruptcy options.
Still not sure or need help deciding? Please feel free to contact us to speak with a Certified Credit Counselor who can help.
Questions You Should Ask Before Signing Up for a Debt Relief Plan
Understanding Secured Debt versus Unsecured Debt
Resource Guides: Educate Yourself to Become Debt Free
Suzanne is a certified credit counselor working in our Ask the Expert forums as a coach and a Social Media Specialist for CareOne. Suzanne writes for our Divorce, Debt and Finances and A Straight Talk on Debt blogs. Follow Suzanne on Twitter where she shares the latest debt industry news and tips to keep your finances in check with her ADivorcedMom and AskCareOne accounts.
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