How does National Debt Relief's program compare?

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Debt Repayment Plan

Your debt repayment plan is your personal plan to get yourself back on track with your finances and eliminate debt. Add up everything you owe for your total debt amount and make a list from the most to least important. Consider these factors when you're making your list:

● Which have the highest interest rates?
● What is the remaining balance on each?
● Do any have a repayment deadline?

Focus on paying off debts with higher interest rates and higher balances and be mindful of any deadlines.

When you're putting together a debt repayment plan, you must determine where this extra money will be coming from. Cut back on spending and stick to a strict budget to put as much money as possible toward your debt. A debt repayment plan takes self-discipline and organization to get out of debt.

Debt Consolidation

With debt consolidation, you consolidate debts into a single payment. Here are some pros and cons of consolidating your debt.

Pros:
● Potentially lower interest rates
● Easier to manage a single payment
● Affordable monthly payments

Cons:
● Depending upon the type of loan, there may fees, such as loan origination fees, balance transfer fees, closing costs, and annual fees.
● It doesn't guarantee you won't go into debt again.
● Your debt consolidation loan could have a higher interest rate if your credit score needs some work.

There are many types of debt consolidation options available:

● Balance transfer credit card
● Home equity loan or home equity line of credit
● Debt consolidation loan
● Student loan consolidation programs through the federal government
● Cash-out mortgage refinance
● National Debt Relief’s Debt Settlement Program

We've talked about debt consolidation versus debt refinancing; although similar, they're not the same. Debt consolidation is combining multiple loans into a single loan, while debt refinancing is replaying a loan with a new loan, ideally with better terms.

Debt Management Programs

Debt management involves working with a credit-counseling agency to put together and implement a repayment plan. The agency will review your finances and develop a plan to help you manage your money better. They may also contact creditors to negotiate lower interest rates on your accrued debt.

Pros:
● You'll receive professional advice and help with budgeting, financial and credit counseling, and information about getting out of debt.
● There's a potential to increase your credit score with timely monthly payments.
● A counselor will deal with your creditors and collectors.
● It's easier to make one payment each month than multiple to different creditors.
● Sticking to a plan with a credit-counseling agency makes you accountable.

Cons:
● There are fees such as an initial startup fee and monthly fees. These amounts vary depending upon the agency and your situation.
● Not all debts are included, such as secured debts and student loans.
● You have to close your credit card accounts, which will lower your access to credit.

Bankruptcy

Bankruptcy should be a last resort to your debt problems. Situations where you should consider declaring bankruptcy are if you're buried underneath debt and cannot repay or if you're behind on your mortgage payments and in danger of foreclosure. If you're considering declaring bankruptcy, here are a few consequences to keep in mind:

● Filing fees can be expensive.
● You should probably hire an attorney, which is also expensive.
● There's long-term damage to your credit score and it can stay on your credit report for up to 10 years.
● It can work on many types of debts but not all kinds or in all cases.
● The potential loss of property is great.
● It could affect others that cosigned on a loan who could be held responsible for at least some of the debt.
● It can be very difficult to get a credit card or a mortgage and, if your application is accepted, expect higher costs.

National Debt Relief's Debt Settlement Program

National Debt Relief’s program works with a form of debt consolidation called debt settlement. Debt settlement is an agreement between you and your creditors where you pay a lower amount than what was originally owed to satisfy your debts. Please note that creditors may not always agree to a settlement. Here's how you can expect a debt settlement program to work:

1. You and a certified debt specialist will go over your financial standing and capabilities. The specialist will work with you to determine where you can save to increase the amount that you pay on your monthly debts.
2. Your debt specialist will come up with a budget plan and the monthly amount that you'll save to pay your debt.
3. Over several months, you continue depositing this monthly amount into an insured account. When a sizeable amount has been saved, our negotiators will negotiate with creditors on your behalf.
4. Once an agreement is met, your funds will be transferred to your creditor and your debt will be settled.

Note: Your negotiator may also negotiate to lower interest rates and wave late fees.

National Debt Relief has an A+ rating with the BBB, over 10 years of experience, and consumers who've completed the debt settlement program reduced debt by as much as 30% even after paying fees, furthermore, there are no upfront fees. Consumers can also call and speak with a certified debt specialist at no cost.

If you're struggling with debt, rest assured that you don't have to do it alone. Depending upon your financial situation, options are available to help rid you of debt and get you back on your feet.

NOTE: This article is a contribution and do not necessarily represent the views of IBTimes.

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