Introduction
Debt management is an essential aspect of financial planning, especially for individuals struggling with debts. According to a survey by NerdWallet, Americans have an average debt of $90,460, including mortgage, credit card, and other forms of debts.
This means that debt management is crucial for individuals who want to survive and thrive in the current economic environment. In this article, we will explore the best debt management services available for individuals to help them manage their finances and avoid debt-related issues.Types of Debt Management ServicesDebt management services are diverse and cover different aspects of managing debts. Some of the most popular debt management services include:
Credit Counseling: Credit counseling services provide individuals with financial education, budgeting tools, and personalized strategies for managing debts. These services are offered by non-profit organizations that can provide support to individuals struggling with debt.
Debt Consolidation: Debt consolidation services involve merging multiple debts into a single payment. This can be achieved through a debt consolidation loan or a balance transfer credit card.
Debt Settlement: Debt settlement involves negotiating with creditors to pay a reduced amount of the total debts owed. Debt settlement services are usually offered by companies that act as intermediaries between the debtor and the creditor.
Bankruptcy: Bankruptcy is a legal process that allows individuals to restructure their finances and clear their debts. This is usually done through Chapter 7 or Chapter 13 bankruptcy. Factors to Consider When Choosing a Debt Management ServiceChoosing a debt management service can be overwhelming, especially when you consider the number of options available. However, some factors can help you identify the best debt management service for your needs. These factors include:
Credibility: The debt management service you choose should have a good reputation and be accredited by reputable organizations.
Experience: Experience is crucial when it comes to debt management services. A service that has been in operation for several years is likely to have more expertise in dealing with debt-related issues.
Services Offered: Different debt management services offer different services. Consider what services you need and look for a service that offers those services.
Fees: Debt management services charge fees for their services. Look for a service that charges reasonable fees and has no hidden fees.
Customer Reviews: Customer reviews can provide insight into the quality of service provided by a debt management service. Look for services that have positive customer reviews.
Top Debt Management ServicesBased on the above factors, we have identified the top debt management services that individuals can consider.
National Foundation for Credit Counseling (NFCC)
The National Foundation for Credit Counseling is a non-profit credit counseling service that has been offering debt management services since 1951. NFCC has more than 600 offices across the US that provide counseling services to individuals struggling with debts. The service offers financial education, debt counseling, debt management plans, and credit reports, among other services.NFCC is accredited by the Council on Accreditation and the International Standards Organization, which guarantees its credibility. The organization charges a set-up fee of up to $75 and a monthly fee of up to $50, depending on the client’s income and debt situation.
Debt Consolidation.com
Debt Consolidation.com is a service that offers debt consolidation loans to individuals struggling with multiple debts. The service provides a free debt consolidation quote that enables individuals to compare the loan options available to them. Debt Consolidation.com works with a network of lenders to provide loan options with low interest rates and favorable terms.Debt Consolidation.com charges no upfront fees for its services. The service also provides a free debt consolidation calculator that enables individuals to estimate how much they can save by consolidating their debts.
Freedom Debt Relief
Freedom Debt Relief is a debt settlement service that helps individuals negotiate with creditors and reduce their total debts. The service has been in operation since 2002 and has helped more than 700,000 people with debt-related issues. Freedom Debt Relief provides a free debt evaluation that helps individuals determine whether debt settlement is the right option for them.Freedom Debt Relief charges no upfront fees for its services. The service charges fees only when a debt is settled, and the client approves the settlement. The fees vary depending on the client’s debt amount, and Freedom Debt Relief guarantees its clients that they will only pay for the services they receive.
Upsolve
Upsolve is a non-profit service that provides assistance to individuals filing for Chapter 7 bankruptcy. The service uses an online platform that guides individuals through the filing process and provides them with legal support. Upsolve is free, and individuals are only required to pay a $335 filing fee to the court.Upsolve is accredited by the American Bar Association, and its online platform has won numerous awards for its ease of use. The service provides eligible individuals with legal representation in some states, which enhances their chances of a successful bankruptcy filing.ConclusionDebt management services can help individuals who are struggling with debts to manage their finances effectively. The best debt management service for you will depend on your specific debt situation and financial goals. Consider the factors outlined above and research the options available to you to choose the right debt management service to meet your needs. Remember that managing debt takes time and patience and that it is essential to be committed to the process.
What are Non-profit Debt Consolidation Programs?
Non-profit Debt Consolidation Programs are financial procedures and strategies offered on a non-profit basis allowing debtors – ranging from individual to commercial in nature – the opportunity to combine the entirety of their respective debt into a single debt requiring repayment; Non-profit Debt Consolidation Programs differ from ‘for-profit’ debt consolidation programs with regard to the manner in which the debt consolidation service is provided – typically, Non-profit Debt Consolidation Programs will be range from the absence of charges to minimal charges with regard to the provision of these services.
Types of Non-profit Debt Consolidation Programs
Although government-mandated Non-profit Debt Consolidation Programs are not uniformly considered to be ‘non-profit’, a bulk of debt consolidation programs offered by jurisdictional governing bodies are classified as Non-profit Debt Consolidation Programs due to the fact that the provision of these services – ranging from debt consolidation restructuring plans to debt consolidation loans – are funded through donations, taxes, or external funding; conversely, independent – ‘for profit’ financial institutions specializing in the provision of debt consolidation services exist requiring their respective clientele to furnish payment or collateral contingent on the undertaking of these services.
Government Non-profit Debt Consolidation Programs
Within the realm of debt management and financial assessment concerning the terms and conditions of Non-profit Debt Consolidation Programs, the following legal and financial processes are amongst the most commonly associated with these types of programs:
The standard repayment plan furnished by a Non-profit debt consolidation program provides for a standardized payment required for furnishing on a monthly basis on behalf of the individual debtor concerning the lending institution
The extended repayment plan furnished by a Non-profit debt consolidation program allows for an extension of the repayment period concerning the life of the loan itself the time of the loan, which typically results in the lessening of the required, scheduled repayment amount
The graduated repayment plan furnished by a Non-profit debt consolidation program provides for a variable repayment amount with regard to life of a defaulted loan
The income analysis repayment plan furnished by a Non-profit debt consolidation program allows for the income of the debtor to serve as a determinant factor with regard to the establishment of repayment amounts
Non-profit Debt Consolidation Programs Legality and Further Assistance
The standards and practices comprising statutory legislation and legal requirements associated with Non-profit Debt Consolidation Programs may range with regard to jurisdictional locale, applicable stipulations, and supplemental legality concerning the administration process of outstanding debt.
Due to the fact that the nature of debt may not only range in the assessment of valuation, but also the innate origin of loans associated with the individual debtor, you are encouraged to consult with an attorney or legal professional specializing in the field of financial law, which addresses administrative policies and individual rights associated with all matters and affairs concerning the management of financial instruments including loans, monies, assets, investments, and Non-profit Debt Consolidation Programs.
The standard repayment plan furnished by a Non-profit debt consolidation program provides for a standardized payment required for furnishing on a monthly basis on behalf of the individual debtor concerning the lending institution The extended repayment plan furnished by a Non-profit debt consolidation program allows for an extension of the repayment period concerning the life of the loan itself the time of the loan, which typically results in the lessening of the required, scheduled repayment amount.
The graduated repayment plan furnished by a Non-profit debt consolidation program provides for a variable repayment amount with regard to life of a defaulted loan. The income analysis repayment plan furnished by a Non-profit debt consolidation program allows for the income of the debtor to serve as a determinant factor with regard to the establishment of repayment amounts.
Non-profit Debt Consolidation Programs Legality and Further Assistance
The standards and practices comprising statutory legislation and legal requirements associated with Non-profit Debt Consolidation Programs may range with regard to jurisdictional locale, applicable stipulations, and supplemental legality concerning the administration process of outstanding debt. Due to the fact that the nature of debt may not only range in the assessment of valuation, but also the innate origin of loans associated with the individual debtor, you are encouraged to consult with an attorney or legal professional specializing in the field of financial law, which addresses administrative policies and individual rights associated with all matters and affairs concerning the management of financial instruments including loans, monies, assets, investments, and Non-profit Debt Consolidation Programs.
