Having to pay back debt can be challenging for some, especially when you’re a victim of economic crises, natural calamities, or exuberant interest rates. When debt is not paid in time, it turns overwhelming. The silver lining is that there are ways to get out of debt. There are debt relief programs that help individuals and businesses stand back on their feet quickly. This article highlights some debt relief options for people seeking help.

Who should seek debt relief?

Individuals or business owners must seek debt relief when there is no hope of repaying debt within five years. Another way to look at it is when the total of unpaid unsecured debt equals half or more of your gross income, it is time for you to look for options like bankruptcy, debt settlement, or debt management.

Debt relief programs

It’s imperative to break free from the burden of paying debts, especially if your life only involves answering creditors and banks and taking care of pending dues. Living a debt-free life is something we all crave, and there are different options to settle a debt. Before committing to a debt relief option, it’s wise to speak to an attorney and fully understand what’s at stake.

Debt relief through bankruptcy

If you qualify for debt settlement, bankruptcy is an option. The most common form of bankruptcy is liquidation; it takes care of credit card debt, unsecured personal loans, and medical debt. However, one of the biggest points to note is that your credit score will take a hit and will be a part of your credit report for up to 10 years. Besides, you will still have to clear your owed taxes, student loan, and child support obligations. However, if you plan on keeping your property, heirlooms, and vacation homes, you may want to reconsider this option.

Debt management plan

This plan allows debtors to pay their creditors month on month by making payments to the credit card counseling agency, which further distributes the payment among different creditors. A debt management plan is also a great option if you want to clear your credit card payment in full. And this plan waives the fees and reduces the interest rate. When going with this plan, your credit card accounts will need to be closed, which will impact your credit score. The debtor can apply for credit cards after successfully completing the debt management plan.

Debt settlement

This debt relief plan is ideally the last resort. Those who don’t qualify for bankruptcy qualify for this debt relief plan. This plan works by accumulating the debtor’s money in an account controlled by the debt settlement company. Post that, the debt settlement agency reaches out to the creditors to make their due payments. In this case, the creditors may accept a lump-sum amount and agree not to pursue the debtor any further. However, opting for debt settlement does not mean you will stop getting calls from credit card companies or will have to stop responding to debtors. All of this is a part of the process during the negotiation.

Best debt relief companies

Regardless of the debt relief plan a debtor chooses to go with, they have to select a debt settlement company. These companies help create smart strategies and plan that help debtors get out of the pool of money they owe.

The below list highlights some of the best debt relief companies.

National Debt Relief

National Debt Relief has been in business for over ten years and is rated best for its overall performance, owing to its transparency and money-back guarantee. Debtors can trust this firm to chart out a settlement plan that helps them get out of debt. The firm is known for settling a debt for a lesser amount than what its customers owe. There are no upfront fees, so debtors can get a consultation from them.

Century support services

Founded in 2012, this brand is backed by positive reviews and excellent ratings by customers. They have worked with over 250,000 customers and settled more than $1.3 billion in debt. Their tenure to complete any settlement ranges from 24 to 48 months.

Accredited Debt Relief

Debtors can rely on this debt relief firm for free consultation from a certified specialist. The firm has a record of settling debts for as low as 50%. Besides offering excellent service in their domain, they also help customers save money in a separate account and discard the use of credit cards.