Debt may be a part of our way of life but finding yourself drowning in debt is a different story altogether. Millions of consumers are deep in debt these days. According to the most recent survey conducted by the Federal Reserve, an average American owes $4,293 per credit card and spends nearly 10% of their monthly disposable income on consumer debt alone. Add to that figure your monthly household expenses and other debts that need to be paid such as mortgage and car loans.
The weight of these financial obligations that you have to carry every single month can leave you with an overwhelming sense of helplessness. These days, debt and financial problems are one of the top triggers of stress-related illnesses such as anxiety disorder, depression, and even heart attack.
Good thing, there are debt relief programs to help millions of debt-stricken consumers, which is why it essential to know their importance and how each program works for the benefit of those who need it.
A world without debt relief
Imagine a world without debt relief: You are faced with a huge amount of consumer debt that is accumulating interest, which makes getting out of debt extremely difficult. This usually leaves you with two options: the first is that you continue paying the minimum payments just like what you’ve always done until you stretch your budget so thin you can barely afford the basic needs of your family. What’s worse is that a huge chunk of your payment only goes towards the interest of your outstanding balance. The principal amount remains the same. In essence, it’s like you’re doing nothing to solve the problem.
Another option is to declare bankruptcy. Many people see bankruptcy as the only way out to a debt problem, never minding the repercussions and the impact of this action on their future.
In a world without debt relief, these two extremes are the only options that you have. Unless you win the lottery or by some stroke of luck you receive an inheritance from a relative in the form of money that you can use to pay off all your debts in one go, you are stuck in a catch-22. Either way, you lose.
Why debt relief is so important
Debt relief programs are a game changer. These measures give the indebted person a respite from their huge financial burden, either fully or partially.
When you are enrolled in a debt relief program, financial situation and capabilities are assessed and a plan is carefully laid out in order to address the debt problem in such a way that will benefit you. The best of debt relief organizations will help you not only in having your debts paid off but also help you save money along the way.
Debt relief gives you the opportunity to take control of your finances once again and gain back the confidence that you have lost because of your dire financial situation. Most importantly, it gives you a viable option to actually solve your problem rather than letting yourself get stuck in the vicious minimum monthly payment loop until all your debt gets out of hand and you are left with no other choice but to file bankruptcy. Debt relief essentially stops you from taking that extreme measure and spare you from its repercussions.
Take the first step
There are several debt relief options to choose from such as debt settlement, debt negotiation, and debt consolidation. The first thing that you must do is to take action. Take advantage of the free confidential consultation that debt relief companies offer to help yourself decide which program is best suited for your predicament and current financial situation. Don’t be afraid. That first step is the beginning of your journey to get your finances back in order and lead you to your dream of financial freedom and independence.