Debt Relief Options

Learn about debt relief options

As of April, 2014, the average U.S. household has over $15,000 in credit card debt and over $33,000 in student loan debt. That’s not counting medical bill, department store, personal loan and other types of unsecured debt. All of these numbers come from the U.S. Census and the Survey of Consumer Finances, government entities that keep accurate records. American consumers are drowning financially, and most are hoping that there is a legitimate form of debt relief which can help them solve their financial nightmares.

There are questions every consumer must ask him or herself before starting the process:

What types of debt relief are available to me?

Consumers have a number of options in paying off their bills, including:

  • Debt Resolution
  • Debt Consolidation
  • Debt Settlement
  • Debt Management
  • Debt Validation
  • Personal Loans
  • Bankruptcy

Each type of debt relief suits a different need, and only an experienced company can provide the type of analysis necessary to help guide consumers. For example, debt settlement might be the best option for someone who can cut their credit card bills by more than half by settling, but it might not be the best option for someone with a mixture of medical bills, personal lines of credit and private student loans. Talking to a professional will help you get the direction you need.

Should I choose debt relief or bankruptcy?

Is your debt weighing you down? It’s important to know that you aren’t alone as consumer debt is at an all time high according to the Federal Trade Commission and other government agencies. For people who have fallen into debt due to illness, unemployment or overspending, it can be overwhelming. Many people watching TV late at night see bankruptcy attorneys and professionals advertised as a way to solve their problems. However, bankruptcy is (and should be) your last resort. It can ruin your credit for up to ten years and prevent you from getting credit, jobs, insurance or even a place to live. Many debt relief organizations will advertise their services using catch phrases to trick you into Chapter 7 or Chapter 13 bankruptcy, but it’s important to make sure you know what you’re getting into.

How do I find a trustworthy debt relief company?

Finding a debt relief agency that can get you the results you want is difficult. Finding a reputable debt resolution company is even more difficult. In the end, a consumer has to trust rating agencies and “word of mouth.” For example, at Moneyfix, our company is FTC compliant and AFCC approved. Both of these are important, as it means the company abides by the guidelines set by the federal government in helping consumers eliminate debt. The AFCC, or American Fair Credit Council, is the “leading association of professional consumer credit advocates organized around a few very simple yet powerful principles.” Having an agency like this backing Moneyfix means that consumers can trust that a third party which sets the standard in the debt relief industry approves our methods and approach to serving our customers.