Debt Relief by Debt Settlement Program
The fact that many US families struggle financially cannot be denied. Among the ten states of America, New York has the highest rates of credit card delinquency whereas the credit debt has reached up to $58 billion.
Let’s understand the Debt Settlement Program of New York;
What do the Statistics Say on New Yorkers Credit Cards Debt?
According to the recent update, the state has reported a significant debt increase over the last two years. The debt analysis shows that New York ranks second highest in the world in Outstanding Debt Nationwide.
Furthermore, the statistics prove that New Yorkers have an average credit score of approximately 730, whereas the debt is over $6000. To completely clear out such high debts, a careful strategy is required. However, if you do not pay your credit bill, then you can damage your credit score. As a result of late payment, your credit card can freeze.
Debt settlement is an easy way in which the company negotiates with the creditors to reduce your debt into a manageable amount.
What does New York Debt Settlement Mean?
If you are struggling to pay your credit card bills then you can settle your unsecured debts with debt settlement attorney New York City. In simple words, debt settlement refers to reducing your credit card debt by negotiating a settlement payment. Not to mention, the settlement payment is less than the debt owed to you by the creditor.
To avoid bankruptcy, debt settlement is an excellent option. Many establishments and creditors accept quick payment even if it is less than the original debt owed. However, you must now that debt settlement is not similar to Debt Consolidation.
Who is Eligible for Debt Settlement?
Before you apply for debt relief to the creditor, you must know whether you qualify to apply or not. Credit cards, unsecured debts, department store cards, signature loans, old judgements or student loans are applicable for debt relief.
· Financial Hardship Condition
We all are aware of the fact that financial struggle can disturb one’s state of mind. Many people face major financial obstacles due to medical issues, student fees, loss of income etc. All these problems can cause chaos in your life. So, if you are facing a financial issue with a legitimate cause, then Debt Settlement program is for you.
As an alternative to bankruptcy, debt settlement attorney New York can provide you with the solutions to all your debt problems. And you can find a debt relief solution if you are undergoing a major financial crisis.
· Committed People
Debt settlement attorney New York City can provide you with quick services to settle all your pending loans in less amount of time. However, people who are committed to walk on this bumpy road are the ones who get successful.
But once you are debt-free, then all your financial issues can come to an end. Once you stay committed on the path, then you can achieve financial freedom.
· Unsecured Credit Cards
If you have unsecured debts like department store cards, medical bills, cell phone bills, private student loans, or business debts, then you are eligible for the debt settlement program. Remember that unsecured debt are the ones that are not attached to real property like your house or car.
Debt settlement attorney New York at the law office can help you know whether you are eligible for the debt settlement program or not. Make sure to take legal advice from a professional to have complete knowledge on the settlement procedures.
What Are the Debt Relief Options for New Yorkers?
Debt settlement is one of the best debt relief methods to reduce the amount of loans and to pay it off quickly. But if you feel that debt settlement is not the right thing for you, there are other forms of debt relief that can help you become debt-free. Following are the alternatives of debt settlement;
· Go for Debt Consolidation
With debt consolidation, one can easily convert several loans into a single debt payment. While one major benefit of debt consolidation is to pay small debts, the other advantage is the lower interest rates. To know if debt consolidation is the best option for you or not, check if you have to pay the debt to different lenders or not.
If you owe several loans to many creditors, then debt consolidation is the best option for you.
· Debt Management Plan (DMP)
With proper credit counselling, debt management plans can easily settle all your debts and reduce them so that the debtor can easily pay off their debts. You make monthly payments to the agency which distributed to the creditors with a lower interest. This benefits you in a way that you have to pay small amounts gradually.
However, unlike debt settlement, debt management has a downside. In debt management there is a little reduction in the overall debt. Moreover, debt management can take 3–5 years to clear all your loans.
· Balance Transfers
If you have a good credit score then, you transfer your credit debts from one credit card into another with 0% interest rates. With this method, you can consolidate your multiple credit debts and also save money. However, a downside is that as you transfer the money to another credit card, an additional fee is charged.
Remember that the low-interest rates do not last forever. So, you must ensure that you have a plan before you opt for balance transfers.
Conclusion
All in all, debt settlement can be a powerful way to ease your debt burden. However, debtors should understand that they must clear all the debts in six years or else creditors can sue them.
With debt settlement attorney New York, you can find ways to have financial freedom and negotiate with the creditors to ease your debt burden. And this is where the Debt Settlement Program takes the lead.
