I know people who have had tough times paying back debts incurred from unsecured loans. Some of them have had credit card debts and some debts on medical bills. Michael had debt accumulated on his medical bills. Michael also had debts to pay back which were actually passed on to him after his father was bed ridden with some illness. Michael had so many bills to clear but didn’t find any way to do it, until he got help from Freedom Debt Relief. He tried paying the minimum due every month but it didn’t help him anyways. The debt on medical bills was also piling, as the insurance people were not fully cooperative. He then signed for the debt reduction program offered by the company to clear his debts. Michael has been making some monthly payments towards the settlement program since then and hopes to get out of the debt anytime soon.

Piling of debts may be a matter of major concern to almost all of us. The unexpected medical expenses and high charges made on clinical visits, medications, lab tests and others can’t be avoided. The person when insured may seek some help from the respective insurance company. The health insurance companies also have their own criteria and may take more time to clear the bills. If the person is not insured, it may make the case even worse. Looking for financial help in such a situation may be more than just hard. Negotiating with the hospital on settling the bills or holding talks with the insurance company (if applicable) may not be an easier task. Though you may try doing all these by yourself, seeking help from experts and professionals may make the work easier for you. There are debt relief companies that offer programs that can help in reducing unsecured debts.

The debt reduction programs initially assess the individual’s financial hardships and help them by making budgets to control the expenses. Based on the situation, the program may sketch a plan on the amount of monthly payments to be made towards the settlement program. A new account for collecting the settlement amount may be created. When the account has an amount enough for starting talks with the creditors on settlement, the negotiation would begin. The creditors when in agreement for the settlement, may be settled with the the amount saved in the account. In case of medical bill debts, the company may hold talks with the hospitals and insurance people, for the settlement. It may negotiate for a lower balance amount to be paid, that may sometimes reach up to half of the original balance. The forgiven debt, sometimes, may be subjected to taxation. The company may recommend tax advisors to help solve any issues on the forgiven debt.
The advantage of this program may be that the program demands fees only after the debts are reduced. The fees demanded may be to compensate the expenses incurred during the settlement process. The debt settlement programs are offered as an alternative to bankruptcy. Bankruptcy may be the last option to reduce debts, as it may have serious effects on the credit scores and may stay as negative on credit reports for more than ten years. Signing for debt settlement program may also have effects on credit report, but not as bad as bankruptcy. Though all these processes can be done by the victim himself, guidance and advice from experts and professionals may help to reduce debts faster.

Author Bio: Freedom Debt Relief

Category: Finances
Keywords: Freedom Debt Relief