What is a Debt Relief Program?
Do you need relief from debt? Are you ready to climb out of the hole your burdensome debt has put you in? Freedom Financial can help. With a customized debt relief program, you can get on the path toward financial freedom and resolve your debt in less time than it would have taken you alone.
A debt relief program is a customized debt relief solution that helps you save money to pay down settled, or negotiated, debt. The customized program is different than the budget strategies employed by debt counseling agencies—with Freedom Financial, you control your program account. We're responsible for the negotiating. We've cultivated relationships with hundreds of creditors, and we have the industry knowledge and professionalism to help settle your debt. When you sign up for a debt relief program, Freedom Financial will work for you as your advocate and negotiator. While you save money in a debt relief program dedicated account that you control, we will start working with your creditors and try to reach a settlement.
When debt relief settlements are reached, you'll be asked to authorize them. Then you'll use the money you've saved to pay your settled amounts. The process repeats for each of your debts, until, eventually, you've resolved your debt.
Debt Relief or Debt Counseling?
When it comes to managing your debt, it's important to know the difference between your many options. Debt relief, or debt settlement, is often confused with debt counseling. That's because both methods of debt management involve negotiation. They both simplify the repayment process, but they go about it in different ways.
Debt relief could lower the total amount you owe. You make one low monthly program payment to the debt resolution program dedicated account, but your individual debts still exist. Freedom Financial may be able to negotiate with your creditors to settle those individual debts, while you save money. When settlements are reached, the money you saved is used to pay the creditors, and you eventually have relief from your debt! So it's one monthly program payment into an account you control. That money you save is then used to pay your individual debts.
Debt Relief Pros: |
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Possibly a faster repayment time |
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Chance to significantly reduce debt amount |
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No loan involved |
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One low monthly program payment |
Debt Relief Cons: |
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Could have a negative impact on credit score |
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You may be contacted by collectors |
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Not guaranteed to have all debts reduced |
Debt counseling often involves negotiating individual payments as well as a possible budget makeover. There's no monthly program account with debt counseling like with debt relief. Debt counseling can result in slightly lower monthly payments, lower interest rates, and a customized personal budget. Debt counseling often slides into debt management programs that involve consolidation. Since consolidation usually requires some type of collateral, like a home mortgage, there could be some risk involved. If your home mortgage is used as collateral, that means your home could be foreclosed if you fail to make payments.
Debt Counseling Pros: |
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It's possible to get a lower interest rate |
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Could lower your payments |
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Learn skills to change your budget and habits |
Debt Counseling Cons: |
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Debt counseling can lead to consolidation, which might be risky depending on the type of debt you have |
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Lower monthly payments could result in paying more in interest over time |
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You cannot un-consolidate your debt |
How to get relief from debt
Millions of Americans are stuck in debt. According to CreditCards.com, the average credit card debt per household with credit cards is more than $15,000*. You are not alone. Finding the path to financial freedom can be tough if you're searching by yourself. Freedom Financial may be able to help. Call a certified debt relief specialist today and learn how you can find true relief from debt.
| A confidential consultation with a certified debt relief specialist can help you: | |
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Learn more about your debt and the options you have to resolve it |
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Create a customized debt relief plan |
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Find the best debt relief solution for you |
It all starts with a phone call. If debt relief is right for you, Freedom Financial can help create a unique debt resolution plan that suits your budget. If debt settlement isn't right, we can help you find an option that might work better. Call now for your risk-free consultation.
*Calculated by dividing the total revolving debt in the U.S. ($793.1 billion as of May 2011 data, as listed in the Federal Reserve's July 2011 report on consumer credit) by the estimated number of households carrying credit card debt (50.2 million).
