Debt Consolidation: Pittsburgh Residents Have Options Available

Pittsburgh has rebounded considerably from the loss of its manufacturing economy back in the 1980s. It has also been named one of the five most livable cities in the United States five times. However, some people in The ‘Burgh are still experiencing financial difficulties. If you’re among them, don’t despair. You’re not alone and there are resources available to help you.

Learning About Debt Solutions

While everyone’s circumstances are slightly different, there are options to fit your specific situation. If you’re a Pittsburgh resident struggling with debt, counseling, settlement or one of several other debt solutions can help you turn things around. Your best strategy will vary depending upon the amount you owe, what kind of debt it is and your FICO score. This is why taking some time to look over the various options is a good idea before you make your move.

Option #1: Credit Counseling and Debt Management

If things are OK now, but you can see the change coming, it’s a good idea to get out ahead of the problem by re-assessing, re-organizing and re-prioritizing your budget. This can be difficult for some, which is why credit counseling is worth looking into. Debt counselors help reshape household budgets to accommodate your needs while simultaneously dealing with your debt.

In some cases, credit counselors also suggest joining a debt management plan.

A debt management plan consolidates all of your qualifying obligations into a single monthly payment. This can make paying your bills simpler and more affordable. Tailored to your exact situation, the counselor will consider your circumstances and work with your creditors to get a lower interest rate, (a “concession rate”) for your enrolled debt. This will reduce your monthly payments.

Rather than paying creditors directly, you’ll funnel the payments through the debt management service, which will distribute the money to your lenders based upon the agreements they reach with each of them. At the conclusion of the program, you’ll have satisfied the debt in its entirety, including interest and fees—along with remuneration for the DMP service.

There is a downside to this approach of which you need to be aware. Enrollment in a debt management program may require closing accounts, which can ding your credit score. While this could make it difficult to acquire new credit accounts right away, it will pass as time goes on if you keep things in good standing.

Option #2: Debt Settlement and Debt Resolution

When you have over $7,500 in debt, and you’re having trouble making even the minimum payments on it, working with a company like Freedom Debt Relief to negotiate settlement agreements with creditors might be your best option.

credit counseling vs debt settlement

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

When you consult with such a firm, its agent will assess your debt situation, develop a plan for working with your creditors, and establish an escrow account from which your debts will be repaid.

As you’re building up the escrow account, the settlement company negotiates with your creditors to get the amounts of your obligations reduced in exchange for lump sum payments or payments structured over time. The funds you were previously paying directly to creditors will instead be deposited into the escrow account. As agreements are reached, the accounts are paid off from the account. You maintain complete control over this money with final approval of all settlement agreements and disbursements. Fees are billed after each account is paid off.

While this strategy also lowers your credit score, it does hold the potential to reduce your debt significantly, which can help you get things back on track much sooner.

Option #3: Additional Debt Solutions & Bankruptcy

Pittsburgh residents have a number of other options available. Alternatives include zero-interest balance transfers, debt consolidation for Pittsburgh residents, minimum payment plans and of course, filing for bankruptcy protection.

While Chapter 7 and Chapter 13 are viable options for some debtors, it is often treated as a last resource. Both forms of bankruptcy damage credit. However, Chapter 13 may help homeowners retain their house. If your debt is far beyond your means to pay it off, bankruptcy may be worth your consideration.

Even if you think bankruptcy might be your last chance, it’s still wise to explore your options. You might find debt freedom through another avenue.

Debt Experts Are Here to Help

Many people in the Pittsburgh area are dealing with unmanageable debt. As you’ve seen here, there are things you can do to resolve the situation. The key is selecting the best one for your circumstance. The experts at Freedom Debt Relief will help you do just that. And, they’re available seven days a week. Call 800-910-0065 today.