Prisoner of Debt - Debt Help

Debt Help

If you need to make amends for credit behavior that's left you with a debt sentence, you will need debt reduction help from a debt management program. Maybe you don't know much about these debt help services. After all, the industry is fairly new--it has been around for about ten years. But don't let that deter you. It's actually a good industry that's saved a lot of people from a true debt sentence--bankruptcy. As a matter of fact, President Bush just signed a bill that requires people who want to file for bankruptcy to get some kind of debt help through a debt management program first.

The Types of Available Debt Help

Debt help comes in many forms, and we've outlined some of them for you below:

Debt settlement - Allows you to pay off your debt at 30-50 cents on the dollar, but you have to have the new amount paid off immediately. (You might be able to find some companies that will give you one to three years to pay it off, but those companies are rare.)
Debt Consolidation - This is the one of the most popular forms of debt help. It involves negotiation to get your unsecured debt balances and interest rates lowered. Then the new, lower balances are combined and you make one monthly payment to the debt consolidation company, which they distribute among your creditors. Because of the reductions, you can become debt free in about five years.
Debt Consolidation Mortgage - Another popular form of debt help. allows you to borrow from the equity in your house to pay off your unsecured debts. Your payment is combined with your mortgage, and you get the same interest rate as your mortgage. In some cases, the interest is even tax-deductible--check with your tax advisor.
Student Loan Debt Consolidation - A tool that combines all of your outstanding student loans into one and locks in a much lower, fixed interest rate for you. You are given more time to pay them off, so your monthly student loan payments are nearly cut in half.
Debt Consolidation Loan - A program that involves a loan being made to you to pay off your unsecured debts. You pay off your unsecured debts immediately, but you still have the loan to pay back. The benefit is that the interest rate on the loan is so much lower (generally half of what you're paying now) and you can have it paid off in five years or less.

The only way to know which of these programs is right for you is to talk to a professional from a debt management company. To find one, simply search the Internet. But don't just choose the first company that pops up. You need to do some research, just as you would with any important financial decision. Make sure the companies you are most interested in are nationally certified and accredited. Make sure they have a physical street address, not just a post office box. Make sure your creditors are willing to work with them. And make sure they are ready and willing to answer any questions you have.

To get started, many of these companies have forms on their web sites that you can complete and submit to give their debt management professional an idea of your situation so they can return the appropriate recommendations to you within 24 hours. Compare these recommendations and get a feel for which company you are most comfortable with.

You don't have to be enslaved to your debt any longer. See for yourself today. There is plenty of free debt help available.