Alexis and Charles, a married couple residing in California, contacted Freedom Debt Relief (FDR) with total debt owing their various creditors, to the amount of $181,006. Unfortunately, they did not foresee what the future was to hold for them; job layoffs and a tremendous amount of money lost in the stock market. Fortunately, Alexis and Charles had the Freedom Debt Relief program, allowing them to settle their credit card debt for a total of just $75,930.79, resulting in a savings of over $100,000. This company offered a variety of free services to help them clear debt and re-establish good spending habits. While other services concentrated on getting them to sign up, FDR concentrated on helping them. They could see the benefits of what they were getting before committing themselves to anything. There are many debt management programs that promise to wave a wand and fix your credit score. However, Freedom Debt Relief understands that in order to build up good credit, there has to be a plan in place and the people using it need to know how to execute that plan. What really stands out about this debt management company is their commitment to education.
The Credit Card Debt consolidation means combining all your different debts into one large debt. This can be done by taking out a new loan from the debt consolidation company. You use the loan to pay off all other debts, so you only have to deal with a single creditor. There are three main benefits to this action:

● Your interest rates are usually lowered.
● Your monthly minimum payments are lowered.
● You only need to make a single payment to a single creditor each month.

Why are these things beneficial to you? Well, the lowered interest rates mean that your debt grows less fast. Your lowered monthly payments mean you have to pay fewer dollars each month. Besides that, a single payment is simply a lot more convenient to having to make several different payments on different dates and to different lenders. However, there is a downside to debt consolidation. As you pay off less of your debt each month, it will continue to grow for a longer time. Depending on the size of your debt, it could take you anything from a year to several years longer to pay it off. This means that the interest rates have a lot more time to make it grow. When you have finally paid it all off, you could very well have paid a whole lot more overall than you would have without consolidating your debt.

Credit card debt negotiation, better known as debt settlement, has similarities with consolidating your debt, but quite different nonetheless. A debt settlement attorney will represent you to your creditors and negotiate a pay off balance. They will be able to stop interest from incurring on the account, have charges and fees removed in an effort to reduce the debt, and, possibly, reduce the overall repayment amount of the total debt. Settling credit card debt can reduce your debt by significant amounts because you will be closing the account permanently. The counselor can arrange a final payoff for a lower price. You must remember though, that you will not be able to using this credit account again. The account will be paid off and closed. Debt settlement companies will have you pay them a monthly sum. Some of this they keep as their wage, and some of it would go into an account. The money in the account will eventually be used to settle the debt. The creditors won\’t get paid in the meantime, which makes them think you\’re going bankrupt. This is why they will accept a settlement payment. A drawback to the settlement program is that you will no longer have any available unsecured credit. It will take you a minimum of 18 months to start rebuilding your credit again. The benefits are that your credit report will reflect the accounts as paid off, and you should be able to reestablish credit easily.

Author Bio: Freedom Debt Relief

Category: Finances
Keywords: Freedom Debt Relief