You may be considering debt relief as an option to resolve your financial burdens once and for all. Perhaps, you are struggling to meet your monthly payments due to a hardship such as loss of income, or divorce (to name a few). Maybe you are making your payments but do not feel like you are making any progress.It can certainly feel that way dependent upon your interest rate and monthly payment amount. You could be considering bankruptcy as an option or maybe you are just tired of being stuck in a rut and want to regain control of your financial future.

Regardless of the reason, just know that you are not alone. There are many LEGAL options to resolve your debt that have worked for millions of people.

The following depicts the most common options and some suggestions
on selecting the right one for your situation.

It is important to be well-informed before making a decision that can affect your financial stability.

Continue Making
Minimum Payments

If you can continue making the minimum payment, at the very least, you are not accruing any late fees and will not be reported to the credit bureaus as being delinquent. However, you are also making very little (if any) progress toward the principal balance of the debt.

In fact, the overall debt could even be increasing based on the interest rate. Making minimum payments does nothing to alleviate the problem. hen paying just the minimum payments, you are contributing a large portion of your payment (or possibly all) to interest. This is an ideal situation for your creditors but does absolutely nothing for you.

Inherit Money

Unfortunately, hoping for a large sum of money to relieve you of these burdens is not a worthwhile strategy. This is just delaying the facts and being unwilling to accept reality. Once you acknowledge the fact that you just might need help the sooner you will be able to determine your remedy.


To ensure you have a plethora of knowledge before making a critical decision, here is a summary of how Bankruptcy works. This is intended for informational purposes and is not to be considered legal advice. Please consult an attorney for further information.

For individuals, there are two forms of Bankruptcy, a Chapter 7 and a Chapter 13. Both have lasting effects on your credit as they will be reported for 7-10 years. The determination of what chapter can be filed is primarily based on income, assets and debts.

Chapter 7 is a full dismissal of debts while Chapter 13 is a repayment plan of sorts. To qualify for a Chapter 7 Bankruptcy, a you must have little to zero disposable income. Anyone can file a Chapter 13 Bankruptcy and may pay a portion of the debt over the course of 3-5 years.

Debt Management

Debt Management, also known as Credit Counseling, is a creditor sponsored program for those who are having difficulty making their monthly minimum payments. Its’ primary goal is to reduce the amount of interest paid and allow the debt to be repaid in a shorter period.

To qualify for this program, you must be able to pay 2-2.5% of your overall debt per month plus a monthly fee to the Debt Management company. They will then disburse monthly to your creditors. You must maintain your program payment for fear of being removed from the program.

The credit report will show a third-party payment as a footnote on each of the accounts enrolled. Some lenders consider this to be a form of Chapter 13 Bankruptcy and it can be difficult to reacquire credit.

Debt Consolidation

A Debt Consolidation Loan is a loan to combine all your existing accounts into one. There are two forms of Debt Consolidation Loans available to consumers: Unsecured and Secured. An Unsecured Loan is one that is granted without attaching any item to it. For those struggling to make their payments, an unsecured loan can be difficult to acquire as it is based on credit worthiness. A Secured Loan is one that provides a form of collateral, such as a house or vehicle, ensuring the repayment of the loan.

Both types of loans typically carry high interest rates. As with credit cards, you will end up paying much more than was originally borrowed. Though your credit rating may not be impacted negatively, your credit worthiness could be lowered. Potential lenders may be unwilling to grant credit to you knowing that you may not be able to make the payments in addition to your existing consolidation loan.

Debt Mediation

Debt Mediation, also known as Debt Settlement, is an option for those looking to reduce their monthly payment as well as the time it takes to be debt free. It is a program designed to settle debt based on financial hardship, such as loss of income, divorce, etc.

There are many factors must be considered with Debt Mediation including age of debt, type of debt, state you live in, income level, etc. Please consult a Debt Counselor before deciding.

Best Option?

That depends on your financial status, goals, and abilities.
The best option is to pay more than the minimum payment. However, if you are struggling to make even the minimum payment or have already gone delinquent on your account, Debt Mediation will allow you to have your monthly payment reduced, settle your debts, and be debt free sooner.

Our expert counselors will listen to your unique situation, inform you ofthe most effective and painless way to help you save money and regain control of your financial future. In addition to providing you with valuable information about our debt mediation program, they will help you understand your options so you can make an educated decision.

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