by When debt gets out of hand, it can feel impossible to pay down your balances. Thankfully, there are plenty of resources to turn to for help. Whether you want to consolidate your debt, reduce your interest rates or settle your balances, the right company can make it easier to pay off those huge bills and regain control of your finances.
Credit counseling agencies, also known as debt management companies, offer low-cost or free services to help you examine your current situation and develop a plan for getting out of debt. A reputable Albuquerque debt relief company will have accreditation from a third-party organization that puts consumer needs first and sets strict industry standards for counselors. It will also have a transparent business model and disclose fees on its website.
To qualify for a debt management program, you’ll need to provide documentation of your income and expenses. This includes recent pay stubs, receipts and utility bills. You’ll also want to have a clear understanding of how your credit report was pulled, which can have an impact on the types of loans you can get and how much you’re likely to pay in fees.
The best debt relief companies will review your financial information and identify your strengths, weaknesses and goals before suggesting a plan. They will also help you create a budget and teach you how to manage your money to avoid future financial problems. They may also help you create a savings goal so you can build up an emergency fund in case of an unexpected expense or life event.
Optimal Debt Solutions takes a holistic approach to debt relief and offers in-house credit specialists who work closely with you and your creditors. Its individualized approach can often result in clients becoming debt-free within 24 to 48 months. This service has an A+ rating with the Better Business Bureau and is accredited by AFCC and Consumer Debt Relief Initiative.
Freedom Debt Relief offers a no-upfront-fee option and works with unsecured debts such as credit card, personal loans and medical bills. Its specialized debt settlement services negotiate with your creditors to reduce the amount you owe and eliminate your debt altogether, typically within two to five years. The company is a member of the International Association of Professional Debt Arbitrators and the Consumer First Legal Network.
When you’re ready to apply for a personal loan, look for a lender that accepts applicants with bad credit or no credit. A lender that has a history of working with difficult borrowers can give you more leeway in your application process. You should also compare the interest rate and fees of your loan options to find the one that’s best for you. If you’re unable to repay your loans, other debt relief options like debt settlement and bankruptcy are available but come with significant risks to your credit score and should be considered only as last resorts.