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Qualify for Debt Help

How much would someone need to be in debt to qualify for help?

How much would someone need to be in debt to qualify for your help? Thank you Sharon

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There is no fee for our free advice from Bills.com. If you are asking about a specific form of debt relief, I would apply online for free and see what program matches best for you: Debt Relief Savings Quote

If you are asking what debt options are available for you, I will give you some free info.

The quick answer is that there are several options. Which one you choose will depend on what your priorities are, so I will try to cover all of your options and let you decide the best course of action for your situation, but I can tell you that it might be a good idea to sit down and evaluate debt consolidation options that do not necessitate a loan. If you want a free consultation with one of Bills.com's pre-screened debt consolidation providers, just follow this link: https://www.bills.com/debthelp/debt/

Now to your options for figuring out how to pay off all of your debts:

The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.

Since there are a variety of online debt consolidation options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, and other debt resolution options, it is important to fully understand each option and then pick the solution that is right for you.

Credit Counseling

Credit counseling, or signing up for a debt management plan, is a very common form of online debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts – but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report… and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third party to re-organize your debts.

Debt Settlement

Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation 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 trade-off here is a negative credit rating versus saving money.

Debt Consolidation Loan

Many people think first of a debt consolidation loan when seeking online debt consolidation. 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 cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, 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.

Bankruptcy

Bankruptcy may also solve your debt problems. If you are considering bankruptcy, I encourage you to consult with a qualified bankruptcy attorney in your area.

Net-net: while there are many forms of online debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the online debt consolidation option that fits for you.

Bills.com makes it easy for you to apply for traditional forms of debt relief, by following this link: Debt Relief Savings Quote

I wish you the best of luck in resolving your financial difficulties, and hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

www.bills.com/

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4 Comments

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  • BA
    Feb, 2009
    Bill
    There is no magic formula, with the loss of income; your main goal will be to re-organize your finances. You will have to take hard decisions about letting go of your rental home. You will have to put your budget on paper and see what your cash flow will be and what your income stream will look like in the next few years. You could look into a short sale if you are upside down on one of your mortgages. Once you are done with your home, you should look into programs that will help you get out the credit card debt. There are several options such as credit counseling or debt settlement but they will affect your credit negatively. There is no point in trying to hold on to your credit rating when your income is not sufficient to cover all the debts, you will have to sacrifice your credit in the interim, you can always recover from this setback in the future. What you have to focus on is to make sure you do not loose your home.
    0 Votes

  • ML
    Feb, 2009
    Mrs.
    We have great credit, never late. All bills are current. Have one rental home and my primary home which are also current. My issue is loss of income, upside down equity in both homes, high revolving credit balances and now a large deficit in income. We are using credit to pay credit now. We want to be out of debt, maintain our good credit and keep our home. What are the best options for us?
    0 Votes

  • BA
    Dec, 2008
    Bill
    That is a difficult proposition. The only way you can get that kind of amount is through a cash out refinance, otherwise without collateral and an excellent credit score, it is just not possible.
    0 Votes

  • 35x35
    Dec, 2008
    Ann
    I would like to receive about $85,000 to pay all my debt. My credit is poor to do the fact that I went through a bad divorce. I am reliable person who needs a break and have only 1 bill to pay. How can I receive that amount and from where?
    0 Votes

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