America’s first boomtown, Rochester, New York is a city from which many innovations have hailed. The birthplace of Kodak, Western Union and Xerox, Rochester has also been known as one of the best cities in the United States for families.
However, the lights of those once proud companies have dimmed somewhat. These developments have led to financial difficulties for a lot of people. Fortunately though, there are solutions available for Rochester-area residents.
Types of Debt Solutions
In fact, if you’re living in Rochester and struggling to make ends meet, you’ll find you have options regardless of your situation. Determining your best strategy will depend upon the total amount of your debt, the nature of your obligations and your current credit rating. With this in mind, it’s a good idea to consider all of the possibilities before you proceed in any particular direction.
If things are just starting to go south for you financial, consulting a credit counselor can help you figure out how to get things back on track. They can help you re-work your budget so it continues meeting your needs while you pay down debt. In some cases, credit counselors may also recommend enrolling in a debt management plan (DMP).
Debt Management Program
Under a DMP, all of your qualifying debts will be rolled into one. This way, making single monthly payment can satisfy all of your obligations. Tailoring a solution specifically to your needs, the credit counselor will also work with your creditors to get interest rate reductions to make your accounts easier to satisfy.
Your monthly payments (based on the lower interest rates) will be made through the DMP to your creditors until the principal loan amounts are paid in full. While DMP services do come with a fee; they also let you make a single payment each month to cover all of your lenders. The interest you’ll save on the debt makes them easier to settle.
While you’ll pay off your debts completely with credit counseling, you might have to forfeit your credit card accounts, which could impact your credit score negatively. It could also narrow your opportunities for new credit, as lenders may view you as a risk for a while.
Debt Resolution & Debt Settlement
Meanwhile, if you have over $7,500 in debt and the parameters above look too difficult for your situation, debt resolution might be a better course of action. Also known as debt negotiation and debt settlement, this strategy will help you both reduce and resolve certain types of debt.
Debt resolution firms:
- Review your circumstances to determine your best course of action.
- Tailor a plan to your specific situation and your particular creditors.
- Help you establish an escrow account to meet your obligations.
Upon enrollment in a debt resolution program, you’ll make monthly deposits into the escrow account, rather than sending them directly to your lenders. While you’re building up the account, the debt resolution company negotiates with your creditors to get reductions in the amounts owed. Payments to settle your debt will be made with your approval from the escrow account when agreements are reached with your creditors. This keeps you in control of both the process and the payments.
While debt settlement can lower the amount you owe, it will also lower your credit rating. You’ll also incur fees from the settlement firm. However, debt settlement can help you eradicate obligations faster and for less money overall.
Additional Debt Solutions
People who live in Rochester should also research the potential of minimum payment plans and low or zero interest credit card balance transfers. Other options include consolidation loans for Rochester residents and, of course, filing for bankruptcy protection. With so many different strategies to consider, it pays to take some time to figure out the best one for your needs.
Get Help from a Debt Expert
People all over the country are burdened with debt. This problem isn’t limited to Rochester. The good news is the broad range of solutions offered by companies like Freedom Debt Relief includes counseling, negotiation and consolidation to help you get back on the road to financial freedom
Whatever company you choose to help you in this regard, be certain to pick one affiliated with the American Fair Credit Council (AFCC) to ensure you’re working with capable professionals.
For a free consultation and advice, call Freedom Debt Relief at 800-910-0065 . Help is available seven days a week.