On an average, Americans owe $ 8,400 in credit card each year. This means that even if they make a 2% payment every month on a debt that is charged 15% APR, they will take 30 years to completely pay off the debt. This will translate into a payment of $ 13,000 in interest.
Debt relief has, therefore, become the mostought after financial service in the US. Debt mostly entitles a third party negotiating with the creditors to write off a certain portion of the total debt. As the lenders takes the final call, it is crucial to have plausible reasons for debt. People with enough means but looking for relief are unceremoniously rejected.
Debt Relief Options By Banks / Other Lenders
This relief is predominately an exercise at the bank's end. The bank sets the rate and the payoff amount. Borrowers have less or no say in these terms. The fallout of not adhering to the schedule could have been a debt plan and pursuing a foreclosure by the lenders.
The worst case is when you are offered a relief program, which is unaffordable. In such cases, a professional debt management company can come to your rescue. With a huge network and expertise in managing debt and offering critical financial counseling, these companies can bail you out of a crisis.
What Do Debt Management Companies Do For Debt Relief
The strategy is simple. Debt management companies talk to borrowers about their financial condition and put the situation across to the lenders. With their persuasive expertise, they send across the message that this is the most their borrower can afford. The approach mostly leaves an impression of 'take it or lose it all' for the lenders.
Such third party intervention balances the negotiation and lets borrowers have some say in deciding the terms and conditions of the payments as well. Most cases result in a reduced debt amount or economic payoff conditions, making debt management easier and affordable.
A restructured debt management company that has a long track record of assisting people looking for debt relief is Superior Debt Relief. In 2009, the company settled debts worth $ 41,000,493 for $ 14,768,872, thus maintaining a 36.06% settlement record.