Debt Consolidation Relief Plans in the United States

The first thing that consumers should be aware of is that debt consolidation relief plans in the United States are never free. There is always a cost of some kind in terms of fees, interest charges and impact on your credit rating. Yes, there are companies that will negotiate a lower amount for you to repay, but this comes at a cost. There is a dollar cost to this in addition your credit rating will take a long-term hit. The best approach by far is to consolidate your debt and then repay it as quickly as you can. If you do need debt relief, hiring a company to negotiate on your behalf with your lenders can reduce the amount you owe. But it is relief, not elimination and that is another point that many consumers are surprised about.

Debt Consolidation Relief Plans

Debt consolidation relief plans in the United States also include various levels of bankruptcy. Including protection from your creditors while you get your act together and develop a plan on how to repay your debt.

True debt relief will hold your creditors at bay while you find a job, get reestablished etc. But you will still need to repay your debt. This is by far the best solution compared to bankruptcy. It takes many years to remove this stain from your credit rating. It also means no loans or mortgages until you have successfully reestablished your credit.