If you think you’re alone in needing help with debt, you aren’t. Almost 300 million Americans suffer financially from debt.
Fortunately for you, there are options to help you take care of the money you owe.
Read on to learn about five resources available to you to help you manage your debt.
Help With Debt
Your options for dealing with debt include debt consolidation, debt resolution plans, debt counseling, and federal debt restructuring. Each resource has its benefits and drawbacks which may help resolve your financial struggle.
1. Debt Consolidation
You have a couple of options if you choose to participate in debt consolidation. Your first option for consolidating your debt is through a second mortgage or applying for a home equity loan.
2. Home Equity Loan
A home equity loan is for a set amount of money secured by your home. You would have to repay the loan in monthly equal payments within a fixed term.
The benefit to this is if you still have income regularly coming into your bank account. If you do, you are taking on a higher financial risk, but with the ability to pay it off.
The downside to a home equity loan is the possibility of foreclosure. If you do not pay your loan on time or to completion, you put your home at risk. A home equity loan is not a good idea for debt consolidation if you do not have a fixed income stream.
When exploring this option, make sure you know your credit score and look around for the best lenders to get the lowest interest rate possible. Some lenders may charge you more fees than others, but if you have shopped around, you can possibly make a deal with the lender of your choice.
3. Nonprofit Debt Consolidation
Another great option for help with debt is through nonprofit debt consolidation. This route avoids you having to take out a loan.
Nonprofit credit counseling agencies provide services to help you restructure your debt. Nonprofit does not mean free, but it does mean you won’t have to take on the financial risk of a home equity loan.
The benefits of this resource result in an affordable monthly budget, usually with reduced income rates on your credit cards. You make one payment to the nonprofit agency you have selected, who then distributes your funds to each credit card company you owe money. Another benefit is a scam-free guarantee with certification from the National Foundation for Credit Counseling (NFCC).
You can receive help with more than credit card debt, too, including:
- Medical bills
- Unsecured personal loans
- Payday loans
These are usually smaller debts that are uncovered by other forms of debt assistance.
Things to Avoid
If you are offered something like free debt consolidation, it’s most likely a scam. Whichever organization or agent you go to for debt solutions usually charges some sort of fee in order to turn a profit. Even nonprofit debt consolidation charges monthly fees for debt assistance.
4. Consolidated Debt Counseling
When choosing a credit counseling organization, you have to make sure they are qualified. The best way to verify their credentials is to check with the NFCC for their certification.
Typically, you’ll receive advice on developing a budget and have opportunities for free materials or workshops to participate in. Consolidated debt counseling is offered by a variety of agencies. Before you select one, shop around.
Once you have found a credit counseling agency to help with debt, there are a few questions to ask.
- What services are offered?
- What information can you provide?
- Can you help me plan for now and the future?
- What will you charge?
- Do I have to sign a contract?
- How do I know my information is secure?
- How are your employees paid?
Some of these are great questions simply to understand how a consolidated debt counseling agency will work with you. Other questions reveal red flags about an agency, telling you to move on to another one.
5. Government Debt Assistance
Last, but certainly not least, is government debt assistance. After exploring your other options, like consolidated debt counseling, nonprofit debt consolidation, or a home equity loan, you do have the option of filing for bankruptcy.
The government has plenty of programs in place to make the transition as easy as possible. They provide debt counseling and for before and after you’ve filed for bankruptcy, ensuring you don’t exempt anything which might come back to haunt your financial future.
Government debt assistance extends beyond programs, too. Organizations like the NFCC and the FTC exist for consumers like you. Their responsibilities extend to ensuring you receive certified help with debt, as well as justice if you are ever the victim of a scam in trying to recover from debt.
Finding Quality Debt Consolidation Solutions
Debt Hunch is a family-owned licensed lender best suited for you to help with debt. We offer solutions to save you time, money, and frustration. Debt already brings so much of this into your life, and we want to ensure you don’t suffer anymore from your financial strain.
We’ll help you determine the best solution for consolidating your debt, as well as point you in the right direction financially for credit counseling and whether a home equity loan is right for you. We offer:
- Advice on industry standards
- Educate consumers like you about online lending
- Offer resources like consolidated debt counseling
To learn more about resources for help with your debt resolution or what else we can do for you and your financial wellbeing, be sure to contact us or check out our website today.
