Suzy and William did something that is very common among young American couples in love: they got married on credit. Both had exceptional credit scores when they were married as a result of having stable jobs and years of proactive, responsible use of credit and credit cards. Their wedding and honeymoon quickly grew in size and scope and strained the limits of the credit cards that they currently had. Shortly after the honeymoon, the world economy took a dive and when that happened, Suzy lost her job. It didn\’t take very long for them to fall behind in all of their credit card payments, and William\’s chief complaint was the sheer number of them. As they were struggling with many debts, it just seemed easier to quit on them. So they decided to find a way out and get some relief or freedom from all their debts. Freedom debt relief is defined as the way out of debt and the freedom to make financial decisions without stress. In the US, citizens can avail of the Freedom Debt Relief program. This is a program offered by the government to consumers who are currently suffering from huge debts. With the aid of the said program, Suzy and William will be represented on debt negotiations to decrease their monthly payments and the debt level. The goal of the program was to help them in getting out of debt in the fastest possible time without spending a lot of money on fees and other expenses. It also provided them credit counseling once the debt concerns have been discussed.

Debt settlement, also called debt negotiation, is a form of debt relief that cuts your total debt, sometimes over 50%, with lower monthly payments. Sound good? For most people, saving money with a low payment meets their debt relief needs. Debt settlement programs typically run around three years. It is not a perfect debt relief solution, however, and it is important to keep in mind that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The debt relief trade-off here is a negative credit rating versus saving money.

Many people think first of a debt consolidation loan when seeking debt relief. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation. If there is ever a chance that you may not be able to afford the new mortgage payment you are now putting yourself at risk of foreclosure! This means that debt consolidation, as a form of debt relief, can actually cause a bigger problem than what you originally had. In the case of a debt consolidation loan, most mortgages are 30-year loans, which means that the total cost and the time to debt freedom could be very high… but the monthly payment will be lower than other options and there is no credit rating impact. So if you are a homeowner and your credit rating is your primary concern, then debt consolidation may be the best form of debt relief.

Freedom debt relief is something we all need and we should not be ashamed if we are in debt. We just need to find a way out so we can live the stress free life that we deserve.

Author Bio: Freedom Debt Relief

Category: Finances
Keywords: Freedom Debt Relief