There’s no getting around it: having debt is stressful. You want to sort out your finances and get back on track, but it’s difficult to know where to start. Lots of debt relief companies claim they can help, but can they be trusted to improve your financial situation? Some even claim to reduce your overall debt by 50%!
While it may sound too good to be true, credit card debt relief companies can guide you through this difficult journey. Their overall goal is to reduce your debt, save you money and get you debt free in as little time as possible.
But can you trust a credit card debt relief company?
Is Credit Card Debt Relief Legitimate?
If you’ve scoured the internet for debt relief options, chances are you’ve come across quite a few, but how can you tell if a firm is legit? One key indicator of a credit card company’s legitimacy comes from respected industry entities. The American Fair Credit Council accredits the best ones.
A good start is to consider what they say about themselves, like this mission statement from FreedomDebtRelief.com. They say their aim is to provide debt relief options and savings for families and individuals struggling with debt in the United States.
They also assert the company’s experts thoroughly analyze a potential client’s financial situation and match them with personalized programs to reduce their overall debt. They pride themselves on providing customized plans for everyone, as each person’s financial journey is different.
Their core values are:
- Clients Come First. Since everyone’s financial situation differs, the company is committed to understanding each person’s story and providing them with customized solutions
- Focus on Savings. Their overall goal is to help people regain control of their finances
- Honesty and Integrity – They want their clients to feel comfortable with their partnership
While everyone’s financial situation is different, one thing remains the same. You want experts who are well versed in dealing with private student loan providers, credit cards, debt, etc. If you want someone negotiating on your behalf, it helps to have someone who not only knows what they’re doing, but also has your best interest at heart.
The goal of credit card relief is to save you money and help you pay off your debt. To do this debt relief companies negotiate with card issuers on your behalf for fee waivers, interest discounts and forgiveness of a portion of the principal balance owed. They will sometimes agree to this in exchange for a one-time payment in full of the agreed-upon settlement amount. This means, you’ll need to have that cash on hand to settle debt.
To accomplish that, you will need to set aside cash in an escrow-like account from which your settlement agreements will be paid. While they can’t guarantee savings or results, their clients typically save around 40%-70% of their overall debt.
One client of a company called Accredited Debt Relief originally had a debt of over $20,000. With the firm’s help, they reached a settlement of just over $6,000, resulting in 70% in savings. Clients can also have lower amounts due, with another client listed having just under $2,000 of debt and a settlement of around $1,000. That’s nearly 50% in savings. No matter how big or small, credit card can help.
The great thing about the best credit card debt relief companies is you can have a consultation with an expert advisor free of charge. You don’t have to commit to anything you don’t want to; it’s just a great place to start if you’re debating whether you can trust a credit card debt relief company.
So yes, you can trust a credit card debt relief company, if you vet them thoroughly first.
Bonus Tip: When Should People Get a Personal Loan?
As mentioned, having debt is always stressful, even when you know that you can get it back. It is an obligation that is always in our subconsciousness and people often organize their life around that duty. However, in some moments, it is simply impossible not to get a loan. But, do all the people know to recognize the right moment for that? It is a question that requires in-depth analysis. Because of that, we would like to highlight a couple of reasons why getting a personal loan can be a good idea.
When Remodeling Home
Being a homeowner is a wonderful thing, but people need to understand that each home also comes with different obstacles and requirements. You will often have to upgrade parts of your home or simply repair certain things. Those costs are usually not low, and most families are not able to afford bigger amounts of money for that.
Some of you will probably say that getting a home equity loan is the best option. However, that type of loan requires that your home become collateral. Things with personal loans are different and they do not have requirements of that type. You can easily improve your home in case you do not have equity which is certainly a better option for many.
When Moving to Another Location
Let’s talk about numbers here a little. The average cost sort of short-distance move is around 1250 dollars. On the other hand, the long-distance moves are nearly 5000 dollars. How many families in the USA could afford that much money at once? That especially counts when you spend a bigger amount of money on purchasing a home.
Thanks to personal loans, things can be much easier. You will, for instance, manage to cover the transportation costs, buy new stuff you can add to your new living place, etc. After you purchase everything that is necessary, you can use all the options to get back that loan.
Moments When Emergency Expenses Appear
The problem with costs is that they often appear suddenly without any announcement. Because of that, most people start to panic and make some bad decisions. Getting a personal loan in these moments is the best possible option.
Let’s put into consideration some of the emergency costs that can arise. Most of them are bad, and we primarily need to highlight funerals. Funerals cost a lot in all parts of the world (especially in the west), and most people can’t afford a big amount of money. However, a personal loan can calm you down and solve your problem.
Despite that, there are medical bills that could appear in a car accident and other unpleasant situations. Even if you negotiate properly with doctors, hospitals, and insurance companies, there are also certain costs that you will have to cover on your own. If you don’t have money, the personal loan is there to save you!
Getting a personal loan in these three situations is reasonable. How you will get back the debt is up to you, but we highlighted debt relief as one of the best solutions that people have. Think smart!