Credit Card Debt Solutions – Are Debt Relief Programs Ever Worth Using?
“Is something worth using?” is always a difficult question to answer. When this question is asked in the financial arena where the financial well being of the consumers is at stake, the answer to the question becomes even more difficult. This is exactly the case with the debt relief programs. Whether a relief program is worthy of use or not will depend on a number of factors. Specially when the relief program is a specific credit card debt relief solution we are speaking about, we need to think multiple times before we go for the method. Let us have a look at the factors.
A debt relief program must be able to reduce the monthly burden of repayment or eliminate at least a decent percentage of the the unsecured loans that you have. However, one thing that you must consider is the amount of money that you can actually save and if you save what will be the tax implications on the same. In short, you need to save some money after a relief program. It is not really a good idea to lose all the money in form of payment to the creditors, fees of the relief firms and taxes to the government. If that happens, you will eventually find that you are paying almost the same amount of money as you originally owe. So, better go for full repayment!
You need to find out the time taken and opportunity cost involved in any of the methods of debt relief that you are choosing. This means that you need to make sure that the time consumed is considerably low and that you need not spend a lot of time running around for relief. This means that you must have ample time left to get involved in other sectors to make yourself financially stronger.
Find out whether your credit score will take a hit or not and if it takes a hit, how long will you stay victim of the same. A relief program must be used when the credit score is not really harmed. This is because of the fact that if the FICO score goes down, you will lose credibility and you will face long term financial troubles.
Analyzing a relief program on the basis of the above mentioned factors will help you to understand whether a relief program is actually worth using or not. Remember that there are several credit card debt solutions but you need to wisely chose.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.