Debt assist programs can help eliminate late charges and interest. This alternative to bankruptcy can help you climb back to a healthy financial situation. The way it works is a company assists you in combining debt and making one payment monthly to them as they pay off your credit cards and some other debts. You can solve your financial dilemma without having to file for bankruptcy.
The first step to realize is that you did make the debt and you are legally obligated to pay the debt. After all it is the right thing to do. But it seems unfair when you have the credit card companies charging you late fees, over the limit fees and those insane interest rates.
Companies that offer debt assist negotiate with the creditors. They would rather receive some money than the possibility that with bankruptcy they receive none. The company will eliminate any more interest charges so the bill is actually paid off.
The main goal of the company is to provide you with a plan to pay off your bills while you can afford the payment. This relieves stress and everyone wins. You have no more creditors calling and the creditors get paid.
As this seems like a great plan for everyone. The drawback is that you cannot apply for more credit cards and the ones you have are no longer available for use. The accounts are closed. Sometimes depending on how much debt you have it can take years to get out of debt.
Just remember that with debt assist you will eventually get out of debt. But this will also show up on your credit report. While it will not be on there for ten years like bankruptcy, it can also effect the type of credit you would receive in the future for purchasing a home or car.
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