Working on holidays and on overtime had become a routine for Ruth. He was doing it only to make monthly payments for his debt bills. He felt he had been paying for a long time, only to see that his bills had no major changes. Ruth was overwhelmed with the debts piling around him and was finding some ways to dig out of debt. He couldn’t make regular monthly payments, after he lost his job. Ruth tried hard to make ends meet, but the late payment charges and interest rate on his cards had already gone up by then. He then approached the Freedom Debt Relief Company for its help in solving his debt issues. After having a talk with the consultants of the company, he was offered a debt reduction program called Fresh Start Program, which turned out effective in clearing off his debts.

The company’s Fresh Start Program is developed to help customers to clear the huge debts. The program demands the fees and charges incurred for the process, only after the debts are reduced. The program doesn’t involve any upfront fees or monthly fees. The consultants review your financial position and offer you the optimal solution for the debt issues. The debt reduction program involves the following steps:

– Assessing the financial ability to sign up for the program.

– Setting up a new account in which the settlement amount is collected. The consultant may quote the lower monthly payments to be made for the settlement.

– Negotiating with the creditors on payments to be made. Sometimes, up to 50% of the debt can be reduced from the total balance owed.

– When negotiation ends successfully, the company tries to settle the debt on behalf of the borrower.

– The charges incurred in the reduction process may be paid after the debt owed is cleared.

– When the settlement process is done, creditors may report the full payment made status to credit reporting agencies.

Unsecured debts incurred from credit cards, medical bills and unsecured personal loans can be paid off with the debt reduction programs. The unsecured debts once paid off may help save money that was earlier made as monthly payment to bills. This money can then be used to pay off secured debts like mortgage loans or auto loans. Sometimes, consolidation loans are also offered as a combination with the reduction programs to help customers clear off debt sooner. The company helps in clearing off debts depending on the priority. The high rate credit card debt may be paid off initially.
When the monthly payments made to the settlement account reaches the amount quoted for settlement, it may be paid off to clear the debt. Generally, the company may advise its customers to lay off all existing credit cards and have just one card for emergencies. This may help to lower monthly payments to be made for a card with lower balance owed. The settlement account created to collect the settlement payments may be controlled by the customer. This account may be a new account, separated from any of your existing accounts. The program may demand few additional payments to be made other than the settlement amount. This additional amount remaining in the account after the settlement is done, may be taken as the debt reduction program’s fees.

Author Bio: Freedom Debt Relief

Category: Finances
Keywords: Freedom Debt Relief