Guide to Debt Relief
What is debt relief?
Debt relief is when the creditor (such as a credit card company or a bank that you have a personal loan with) forgives a portion of your debt or in total. This is an extreme circumstance which occurs when the debtor (the person who owes money) cannot afford to make payments on the debt. Bankruptcy is one way to achieve debt relief. However, our goal for this website is to present other alternatives to finding debt relief, including negotiating with creditors without involving a bankruptcy court.
Does credit card debt qualify for relief?
Yes. A credit card is considered an unsecured debt. It is not backed up by collateral. Credit card companies like to keep you in debt and are doing a good job at it. Card practices have sunk to an all time low with outrageous interest rate hikes, hard to read agreements, hidden fees, and misleading marketing offers. Going it alone and fighting the credit card companies is not a fair fight. Card debt consolidation, debt management through counseling, debt settlement, and bankruptcy is a way but you need to understand your situation in order to make it right. You want to know how much you could save and this requires filling out forms. Your creditors must understand your financial situation and the fact that you simply cannot afford to pay your debt in full, they may agree to forgive most, up to 60% or more. This is debt settlement, or debt negotiation.
How do I start?
Contact those you owe and speak to the manager only and ask for brief forms explaining the amount you owe. Write letters and explain what you can pay and why, in fact, demand it! Let them know through no fault of your own the debt exists, but you want it to end. Debts can be eliminated!