With over 870,000 Indianapolis residents, there are big city amenities in this town—from going to grab a beer at a craft brewery to cheering at a Pacers game—there’s always something to go do. Although with a median household income of $42,076, it may not be enough to live on comfortably in this growing city. And if you find yourself dealing with high debt, then you may be too distracted by debt stress to notice all the great things Indy has to offer.
Debt can be overwhelming to figure out how to live life, while paying it down. Nearly 40% of Americans carry credit card debt. If this sounds familiar, then you may need help finding a solution specifically geared to your personal situation.
How Credit Counseling Works
If you have less than $7,000 of debt, then it may be as simply reevaluating your budget and organizing your financial priorities. If so, then debt counseling may be your best approach to paying down debt. When you work with a debt counselor, they can help build a budget that works for your daily expenses while also finding ways to focus funds toward eliminating your debt. For some people, a debt counselor may suggest enrolling your debts into a debt management plan (DMP) that they customize to your situation. This plan doesn’t reduce debt owed, but it shows creditors that you’re serious about paying debt. Although the DMP may save you money on interest over time, as the credit counseling service will negotiate with your creditors for a lower interest rate—called a “concession rate”—on your debts. From then on, the interest on your account will be based on the new concession rate.
Although there is a program fee associated with the DMP, it is usually less than if you were paying the full interest on your debt, plus it lets you focus on one payment with only one interest rate per month. The goal of debt management is to get you on track.
Enrollment in a DMP and working with a credit counseling agency may lower your credit score as well impact your ability to open or use additional lines of credit as some lenders may consider you a financial risk. Additionally, some or all of your credit card accounts may be closed. If the idea of increasing the amount you pay to creditors each month, then this might not be a good solution for you.
How Debt Resolution Works
If you have a large amount of debt, then you may want hire a debt resolution company to resolve debt. Also called debt settlement, this process of debt resolution works by you enrolling all of your debts into a special program, then the company creates a personalized debt relief plan that will help you pay off all of your enrolled debts.
There are two main parts to the debt resolution plan. The first part is that each month, instead of paying all of your creditors, you’ll make a single deposit into a special program account that you control. The second part is that while you continue to deposit funds, the debt resolution company becomes your advocate and negotiates with creditors on your behalf to help save you money on the total amount of debt owed. When the company reaches an agreed to lesser amount with a creditor, then you authorize payment of the debt with funds from your program account. No debt will be paid without your consent, putting you in the driver’s seat. This will be how it works for each enrolled debt with each creditor until all debts have been resolved.
Debt settlements can provide significant savings on your debt as opposed to making minimum payments, which could cost you thousands in interest alone. Take a look at some of the top settlements negotiated by Freedom Debt Relief to see how a debt resolution program can work for you.
One thing to know is that a debt settlement can negatively impact your credit score. Additionally, debt resolution programs charge a small fee, yet it may help you get out of debt faster and for less money on the whole of your total owed debt amount.
Request a free debt evaluation to find out how we could help you:
- Resolve your debt faster
- Significantly reduce what you owe
- Make one low monthly program payment
Selecting the Right Debt Solution for You
Debt will not go away on its own. Whether you work with a credit counselor, enroll in debt settlement, or decide on a different option—such as declaring bankruptcy, minimum payment plans, debt consolidation—it’s important to find a debt solution that best fits your situation.
Whichever strategy you choose, know that you are not alone. Millions of Americans are struggling with high interest rates, stagnant wages, and unstable employment, but not all of them are actively looking for a solution like you are right now. So keep going!
No matter which solution you choose, remember that if you want to avoid getting into deep debt again, you need to take a look at how you got into debt. You may need to carefully evaluate your financial goals and priorities, learn to create and use a simple budget, plus create a solid emergency fund. These steps may require reducing expenses, changing spending habits, and/or earning more income through an additional job or taking on odd jobs.
There’s no perfect for solution for paying off debt. If one debt solution seems like it might work for you, then dig deeper. Our website can help you learn more and understand which might be the best way for you to become debt-free. By taking these steps you can ease debt stress and find a way pay it off debt and remove from your life.
Freedom Debt Relief is committed to helping people defeat their debt. As the largest, most-established debt settlement company, we take pride in having helped over a half million people. We know that debt can be stressful so we offer customer service 7 days a week to ensure there’s someone available for you. Plus, your personalized online dashboard gives you control to see all of your accounts, your debts, and the progress of negotiations to help lower your debt.
To find out if our debt settlement program can help you save money and get out of debt faster fill out this online form or call us at 800-910-0065 —we’re here to help get you on the road to financial freedom.