Debt is one of the heaviest, recurring problems among credit card holders. If the credit card owner isn’t careful enough, it might just pile up too high for his own good-he may get caught up in a financial struggle. Thus, certain assistance programs have been set up in various cities or nations, to aid debtors handle this financial burden. Such aid is the debt relief. Commonly regarded as the pardoning a portion of one’s debt or slowing and stopping it altogether, debt relief can apply from the micro, domestic situations, to the macro, national situations.

The concept of debt relief came from as early as the 19th century, in the form of pardoning slaves of their agricultural debts. In then expanded to include as big a situation as the Third World War, in which several nations owe monumental debts to each other. However, debt relief nowadays, more commonly apply to domestic situations or householders.

In most cases, debt relief is offered to underprivileged householders. However, there are programs available for the ordinary debtor. The five most common debt relief programs are debt consolidation, debt management, settlement, self-repayment and-usually the last resort-bankruptcy.

Debt consolidation programs are all about combining bills into a single payment. Whether for credit card or monthly house bills, debt consolidation programs offer services such as lowering interest rates and monthly payment rates. Several companies in different states in the U.S. like Miami, Washington or New York offer debt consolidation programs.

Debt settlement programs on the other hand focus on reducing your current balance by 40 to 60%. In this way, it will be easier for the debtor to complete the payments for his or her debt. Debt settlements are usually the way for multiple cardholders who cannot keep up with the monthly payments. This also helps the debtor avoid lawsuits and file bankruptcy. Again, there are many available debt settlement programs in the states of Miami, Washington and many more.

The third option, much like the preceding two, is called the debt management. Debt management, as the name suggests, employs the assistance of a credit-counseling agency, which does the work for you. The agency assesses one’s financial circumstance and makes the necessary arrangements with the creditors. Unlike the first two though, debt management focuses more on assisting the debtor pay his or her debts with ease, instead of lowering the rates. In many cases, the agency is in charge of collecting the debts instead paying it directly to the creditors.

The final two options come in last for a reason: they are usually the last resort. The self-repayment plan is the option for those who do not have at their disposal credit-assisting agencies. These could also be for the independent ones who want to learn how to manage their own debt. It usually involves simple steps like, making lists of your debts, prioritizing which ones to pay first, and cutting down on expenses. In this option, the concept of budgeting-or allotting the necessary amount for each payment responsibility-is very crucial to understand. If this option still does not work, then debtors usually have no choice but to file for bankruptcy.

Author Bio: Troy Charles G. Burton is a financial analyst who enjoys writing about debt consolidation loan and Florida debt consolidation as well as other financial services.

Category: Finances
Keywords: debt relief,debt relief services,debt relief options