Among the debt relief options available in the financial sector, the credit card debt reduction programs have earned the loudest cheer.
The popularity of this program is due to its easiness and cheapness.
Let me explain you the advantages of debt relief programs and why they are considered legitimate to get rid of unpaid dues.
1.
According to the new F.
T.
C laws, the debt clearance companies are prohibited from taking an upfront fee from the consumers before they finish their service.
This step is to make the debt clearance industry a legitimate one.
In a roundabout way, it ensures the consumer protection.
2.
Under this program, the consumers receive discounts depending on the volume of debts they have.
The discounts can be ranged from 40% to 60% and in worst cases up to 70% also.
The interest is wiped out at the beginning of the program.
This step has brought out as legislation under chapter 13 bankruptcy suit by the government as means of giving the financial establishments a chance to recover what they have borrowed.
3.
This program allows the debtor to be debt free within two or three years and thus avoids the need of falling prey into bad bankruptcy which brings so many negative repercussions with them.
Though there will be a temporary downfall of the credit score due to this program, it is not strong enough to blow up your whole credit score.
It will start to repair when you continue your payments in a regular basis.
4.
To end the article, this programs offer the consumers with free credit counseling which helps you in future to manage your finances.
No other debt relief programs offer free counseling except in debt consolidation and debt settlement.
But before you apply for this program, you are obliged to meet one requirement- that is you must already have a minimum amount of $10 000 as debt.
This criterion is introduced by president Obama, since they cannot provide reliefs to those who owe small amount of debts.
The popularity of this program is due to its easiness and cheapness.
Let me explain you the advantages of debt relief programs and why they are considered legitimate to get rid of unpaid dues.
1.
According to the new F.
T.
C laws, the debt clearance companies are prohibited from taking an upfront fee from the consumers before they finish their service.
This step is to make the debt clearance industry a legitimate one.
In a roundabout way, it ensures the consumer protection.
2.
Under this program, the consumers receive discounts depending on the volume of debts they have.
The discounts can be ranged from 40% to 60% and in worst cases up to 70% also.
The interest is wiped out at the beginning of the program.
This step has brought out as legislation under chapter 13 bankruptcy suit by the government as means of giving the financial establishments a chance to recover what they have borrowed.
3.
This program allows the debtor to be debt free within two or three years and thus avoids the need of falling prey into bad bankruptcy which brings so many negative repercussions with them.
Though there will be a temporary downfall of the credit score due to this program, it is not strong enough to blow up your whole credit score.
It will start to repair when you continue your payments in a regular basis.
4.
To end the article, this programs offer the consumers with free credit counseling which helps you in future to manage your finances.
No other debt relief programs offer free counseling except in debt consolidation and debt settlement.
But before you apply for this program, you are obliged to meet one requirement- that is you must already have a minimum amount of $10 000 as debt.
This criterion is introduced by president Obama, since they cannot provide reliefs to those who owe small amount of debts.