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How Debt Relief Can Help You

As of February 2021, before the Covid 19 pandemic and recession set in, U.S. consumer debt was estimated at over $4.2 trillion. Add the effect of the pandemic to the mix and suddenly millions of Americans are potential candidates for debt relief plans such as credit counseling, consolidation or debt settlement to get their finances back on track.

While each of those options is potentially beneficial, it’s important to recognize debt relief plans are long-term solutions.This is key to understanding how debt relief can help you.

How Debt Relief Programs Work?
For starters, debt relief refers to various solutions intended to help borrowers make payments without straining and eventually become debt-free. These programs might include a replacement loan to reduce the interest rate or the repayment term to lower the total amount owed.

Types of debt relief
A good first step is to connect with a credit counselor who can help you determine the optimal debt relief option for your situation. These programs can change the terms or amount of your debt so you can make headway in paying it off.

Here are the relief options and their advantages and downsides

 

 

When it comes to how debt relief can help you, each of these approaches has its pros and cons. It’s always a good idea to talk to a credit counselor before you make your final decision in order to determine the most beneficial plan of action for your circumstances.

 

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