You might have done your best to have an emergency fund, but if it isn’t cutting it, you can get debt assistance from the government now. Debt adversely affects your credit report and decreases your credit score so it’s best to nip it in the bud.
Debt relief programs have increased as more and more people find themselves in the black. One study recently found that the average American household has credit card debts amounting to more than $16,000.
The economy has also moved away from a manufacturing basis and has become more of a service-centered economy which has also contributed to the disruption. This has left many people underemployed or unemployed. Let’s get into how to get some help.
Why You Need Debt Assistance
The reality is that many people are looking for ways to get out of debt. Credit card companies are not doing you any favors with their high interest. If you can only afford to make minimum payments it can take you up to 25 years to pay off your credit cards.
There are plenty of companies offering debt relief. The most popular ones are those that offer debt negotiation, which is also known as debt settlement.
The goal of debt relief is to reduce your debts. Not to eliminate them altogether. Most people confuse this and do not really understand what it means. When you qualify for debt relief, you are in essence trying to reduce the amount of debt you currently have.
How To Apply For Debt Assistance Through National Debt Relief
One of the ways to qualify for debt assistance is through debt settlement. The National Debt Relief debt settlement starts when you enter into their program. You can start sending some money to them to fund your escrow account which they shall have full control.
When a certain amount of money accumulates in this account, they will start contacting your lenders and negotiate for settlements. Their debt counselors shall offer to settle the debts either in lumpsum or installment for less than the debt is worth.
For example, if you have a debt worth $10,000, they can negotiate this to around $5,000. If the lender agrees to this offer, they shall ask you to release the money in their escrow account so they can pay the lender.
Of course, not all lenders will agree to this, but the company never gives up, and they shall continue contacting the lenders until they successfully manage to settle your debt or they become extremely clear that the lender is not willing to negotiate.
How Do You Qualify For Debt Relief
Make monthly payments
To qualify for debt relief, you must be able to deposit a monthly payment amount in their settlement account. This is the first requirement. Their monthly payment is usually lower than the total amount of money you have been paying on your debt.
Minimum debt amount
For you to qualify, you must owe more than $7500 and must be several months behind on your loan payments. The reason behind this is that; if you are late with just a month or two, the creditors shall have no incentive to negotiate.
At this stage, it’s better to just keep harassing you to pay, hoping that you will ultimately just pay back the full amount.
You must be going through a financial crisis
Another requirement is that you must be having a financial crisis that doesn’t have any end in sight. This could be as a result of a pandemic that has rendered most jobs obsolete, or you may have lost your job, or have gone through separation or divorce and are unable to take care of yourself.
You must have demonstrated some financial hardship to your creditors which shows that you desperately need debt relief to assist with your debts.
What Debt Qualifies For Their Program?
- Most major credit card debts – you name it, MasterCard, Visa, American Express, Discover Card, etc.
- Department store cards including Macy’s, Sears, PayPal, Gap, etc.
- Bank Loans taken from Prior Banks.
- Gas Cards.
- Finance Companies.
- Installment Loans.
- Repossession Deficiency Balances.
- Unsecured personal loans from CitiFinancial and American General.
- Bank Overdrafts and other Associated Fees. This should be accompanied by a statement and the debt should already be with the collections agency.
- Credit union loans where membership is not for Military or Federal Employees only.
- Veterinarian bills that are more than $500.
- Abandoned Time Shares that have current statements.
How To Get Debt Assistance Conclusion
It is a good idea to seek debt assistance if you are facing financial challenges. Log on to the National Debt Relief Site for more information about this, and how they can help you out. Do note that this is just one form of debt relief out there. Choose wisely.