What is the Best Debt Relief Option?

If you are tired of debt and the limitations it imposes on your life, you need a plan to radically alter your financial situation. Here are some of your debt resolution options:

• Do-It-Yourself debt reduction
• Debt settlement plans (DSPs)
• Credit counseling and a debt management plan
• Debt consolidation loans
• Bankruptcy

As a premier debt relief company, we acknowledge that choosing the optimal debt relief program can seem overwhelming, especially when you are already struggling to pay and settle your debt. That’s why we recommend that you speak to a ClearOne Advantage Certified Debt Specialist who will help you in choosing a debt relief plan that meets your particular needs.

Here’s a brief overview of what each type of debt relief involves.

Do-It-Yourself Debt Reduction

You may be able to reduce your debt using DIY on your own if:

• You have a steady income.
• You are current on payments.
• You can pay more than twice the monthly minimum on your credit cards.

Through the Snowball Method, you go after the credit card with the smallest balance first, while paying the minimum on the other credit cards. This way, you retire one card at a time. The Avalanche Method requires you to retire the credit card with the highest interest rate first.

The advantage of DIY debt reduction is that it does not hurt your credit score and it does not cost anything beyond what you owe plus interest. The disadvantage is that you may find that you are not making real progress toward your goal of freedom from debt. In that case, you can always consult with a ClearOne Advantage Certified Debt Specialist to analyze your situation and explore other debt relief options.

When considering debt relief options, explore accredited debt relief services - especially if you’re dealing with different types of debt such as private student loans, business credit cards, student credit cards, or personal credit card debt. These services can provide solutions just for you to alleviate financial burdens. Whether through DIY methods or professional assistance from debt relief companies and debt relief programs, choose the best approach for your financial freedom.

Learn more about the two most popular DIY debt reduction strategies: Snowball vs. Avalanche Method.

Read more: What is Debt Relief

Debt Settlement Plans (DSPs)

Debt settlement plans are often a good option for people who owe more than $10,000 in unsecured debt like credit cards. If you are struggling to lower interest rates, make the minimum monthly payment on credit cards, or are making little to no progress paying your creditors the principal amount of debt you owe, a debt settlement plan can help you get back on track.

When you choose a debt settlement plan with ClearOne Advantage, we do all the heavy lifting for you. Here’s how it works:

1. Step 1: Get Your Custom Plan
2. Step 2: Make Your First Payment
3. Step 3: Approve Your Settlements
4. Step 4: Graduate and Move Forward

Benefits of debt settlement plans:

One of the biggest advantages of debt settlement is that you pay less than what you owe. Our Certified Debt Specialists work with your creditors to reach agreements that reduce your balances. From there, we’ll help you build a plan that moves you toward a stronger financial future.

• No upfront fees: Unlike some other forms of debt relief, there are no upfront fees. Fees are collected only after ClearOne Advantage successfully negotiates a settlement with your creditors.
• Can include unsecured debts other than credit cards: A DSP can address many different types of unsecured debts, meaning that you can handle most of your debts in one plan and one monthly deposit to your savings account.
• The savings account belongs to you: The FDIC-insured account is under your control for the duration of the debt settlement process.
• Be free from debt in 2-5 years: Generally, ClearOne Advantage clients are able to be free of debt in as little as two to five years by making all scheduled deposits and following a customized DSP. A DSP from ClearOne Advantage sets the foundation for getting out of debt more easily and efficiently.
• DSPs have an excellent track record for getting people out of debt: According to an American Fair Credit Council report, debt settlement saves $2.67 on average, for every $1 you spend on fees.

Potential drawbacks of debt settlement plans:

• Some creditors may not settle: Many creditors will reach an agreement with you, but some may decide not to accept your settlement offer.
• Negative effect on your credit score: Debt settlement will have a negative impact on your credit report, but not as severe as bankruptcy.
• Tax consequences: You may have to pay additional taxes on the money you save through debt settlement.

Learn more about the pros and cons of debt settlement.

Learn More How Debt Settlement Works

We know that finding relief from debt and taking back control of your financial life requires both determination and commitment from you. However, our clients’ past success has proven that you can conquer your debt. Learn more about how the ClearOne Advantage debt reduction program works.

Credit Counseling and Debt Management Plans

Credit counseling/debt management is a form of debt consolidation that may work well for thousands of people with $5,000 to $10,000 in unsecured debt. It allows you to bundle credit card debts into a single package, by making a single monthly payment with lower interest rates and possibly forgiven penalty fees.

Credit counseling may have a slight negative impact on your credit score, and there are some upfront fees as well as monthly management fees to consider.

Bankruptcy

Bankruptcy should be considered a last resort for those who can see no other way to free themselves from debt. A successful bankruptcy filing creates an automatic stay that protects you from creditors for the duration of the process.

Filing is complicated, however, and working with a bankruptcy attorney is usually required and there will be fees involved. Even if your bankruptcy filing is successful and you are able to discharge some or all of your debt, the severe impact on your credit score lasts for 7-10 years.

Is Bankruptcy the Right Option for You?

If you are, like millions of Americans, struggling under the weight of credit card debt, you may feel that your life has spiraled out of control. You can take control back by exploring your options for credit card relief. One smart option to consider is debt settlement.

Debt Consolidation Loans

Debt consolidation loans aim to replace your multiple, high-interest credit cards with a single, low-interest loan. This way, they consolidate your monthly payments into a single payment under more favorable terms. These loans may be suitable for people with excellent credit.

Debt consolidation loans feature payment periods of 36-60 months. The main danger of “paying off one debt with another” is that you may feel tempted to start using your paid-off credit cards again. Another danger is that, because some debt consolidation loans are secured, you risk losing assets you use as collateral for the loan if you default on your payments.

Learn More About Debt Consolidation Loans

If you feel like you are constantly worrying about how to make your next credit card payment, you are not alone. Around 80 percent of Americans struggle with debt. You do not have to be an extravagant spender to find yourself in this position.

Learn more about the pros and cons of debt consolidation loans.

Is Debt Relief Right for You?

You are at the right place if you don’t want to engage in a debt relief process without knowing the potential outcome.

A ClearOne Advantage Certified Debt Specialist can help you to determine if debt settlement is the right option for you, as well as help you put together a customized solution to pay your creditors which also fits your financial situation. Defeat your debt the smart way! Find out how.