Financial hardship can strike individuals and families at any time, and residents of Missouri are not immune to mounting debt. With the current cost of living, where wages are not following price increases, it’s easy for anyone living in the state of Missouri to find their financial situation challenging.
Life is full of complications, such as medical bills, job losses, economic downturns, personal loans, past student loan debt, or other unforeseen circumstances. That’s when struggling with credit card payments and debt can become overwhelming, stressful, and emotionally draining.
If you, as a Missouri resident, find yourself in unmanageable card payments, know you are not alone in your struggle. Thankfully, Missouri offers several viable credit card debt recovery and debt relief programs.
With ClearOne, you have a trusted debt relief company that can explain debt relief options and help you find the best debt relief program that fits your situation. Different types of loans come with advantages, requirements, and new potential consequences. In some solutions, you may find immediate debt relief but with long-term implications, while others might require more time.
A Unique Solution for Everyone
Missouri residents should approach debt management programs knowing that there's no one-size-fits-all solution. Your debt relief solutions should depend on factors like the total amount of debt, types of debt, current income, credit score, and long-term financial goals. You should also consider how each option might affect your financial future, including your ability to obtain credit, secure employment, or make major purchases down the line.
If you are looking for debt relief options in Missouri, here is a helpful guide about how you can reduce your debt faster or manage it in an accessible way.
Debt Counseling Assistance Programs
Missouri residents have access to non-profit credit counseling services. These begin with an initial free debt analysis consultation and provide helpful financial literacy and budgeting assistance on how to consolidate your debt. They also introduce the way debt relief companies work.
This way, you get a clear idea of how much you earn, how much you spend, and how much money you owe. You can then assess how you can best repay your debt, either by reducing your expenses or by increasing your income with a second job or with other opportunities.
Debt Management Plans (DMPs)
Debt management plans help you work with a credit counseling agency to take control of your monthly payment planning. A debt management plan helps you create a repayment consumer debt plan that fits your finances and requires a little bit of financial discipline.
This relief program streamlines your payments and may even reduce interest rates through agreements with creditors. You might also reach an agreement to waive late fees. However, it takes 3-5 years to complete a DMP, and it doesn't reduce the principal amount owed. Also, you'll need to make consistent minimum monthly payments throughout the debt management program.
Debt Consolidation Loans
Debt consolidation combines multiple debts into a single loan, possibly with a lower interest rate. If you owe money to many credit card companies, other unsecured loans, and bills, you can get a consolidation loan to repay all your existing debts and only repay one loan by making one monthly payment.
When you consolidate your debts, you simplify your monthly payments and may even reduce your interest costs. Also, a debt consolidation loan usually has lower interest rates than an average credit card.
A consolidation loan is not used to reduce your amount of debt; it simply restructures it. A consolidation loan also works best if you have a good credit score to benefit from lower interest rates.
Debt Settlement
For many Missouri residents, debt settlement is the most accessible option to manage substantial unsecured debt. If your debt is overwhelming and you can’t possibly repay it on your current household income, you may want to consider applying for a debt settlement program.
Missouri debt settlement can typically reduce your amount of credit card debt by 25 to 50%. You then have to pay the remaining debt. The program usually takes 24-48 months to complete, which is considerably shorter than traditional debt management plans. The way debt settlement works is that you work with a debt settlement company like ClearOne, which will negotiate on your behalf to reduce the balance owed with your creditors. While negotiations are ongoing, you will be drafting into a dedicated program savings account so that you have funds to make payments on the settlements that are negotiated for you.
Settlement may negatively impact your credit score and stay on your credit record for 7 years. During this time, you may find it hard to borrow money or apply for credit. Even so, many find this trade-off worthwhile for substantial debt reduction and a faster path to financial freedom.
The program works effectively with many types of unsecured debt, and you won't need to provide collateral.
File for Bankruptcy
Bankruptcy is a last-resort solution for Missouri residents, with options for either Chapter 7 liquidation or Chapter 13 reorganization.
Chapter 7 bankruptcy, often called "liquidation bankruptcy," involves selling non-exempt assets to pay creditors and eliminates most unsecured debts within 4-6 months. To qualify for Chapter 7 in Missouri, you must pass a means test and demonstrate that your income is below the state median.
Chapter 13 bankruptcy, known as "reorganization bankruptcy," allows you to keep your property while repaying debts through a structured 3-5-year payment plan. Missouri residents often opt for this choice if they don't qualify for Chapter 7 or have regular income and want to protect their assets.
This specific legal process provides protection from debt collectors but comes with important long-term consequences. A bankruptcy filing remains on your credit report for 7-10 years and may affect future employment opportunities. The process also often involves substantial attorney fees, and depending on the type of bankruptcy, you may need to surrender some of your assets. While bankruptcy can provide a fresh debt free start, it is generally recommended to explore other card debt relief options because it can adversely affect your financial future.
Making the Right Choice for Card Debt Relief in Missouri
Debt relief programs are available to Missouri residents, so you only need to find which debt solutions best match your needs and financial situation.
Consider your total debt amount, types of debt, current income as well as your long-term financial goals. Don’t forget the impact on your credit score and the timeline for becoming debt-free. If you are struggling with $10,000 or more in unsecured debt, debt settlement is a good choice in terms of debt reduction, timeline, and cost.
If you want to learn more about debt settlement, contact ClearOne and one of our debt specialists will be happy to explain your options and how you can exit your debt spiral. We provide all the necessary information and help you settle your debt for less so that you can restart your life and face a safer and happier financial future.
Call our ClearOne Certified Debt Counselors at 866-481-1597 today to discuss your debt in Missouri. Get your free savings estimate and let a reliable debt relief company show you how to find fast debt relief for your family!
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