During current times, America is a nation whose citizens are riddled with debt. It has been estimated that the average American household has about $137,000 in debt, which includes credit card debt, student loans, mortgages and car loans. This amount varies from state to state, but has definitely increased during recent years. With this type of debt, the accumulation of interest adds an additional burden until trying to pay it off is like pushing a heavy rock uphill, only to have it roll back down again. But when looking for debt relief, who qualifies for it? Nearly anyone with debt who is having trouble making those monthly payments can find some sort of debt relief or assistance. Some of the more common types of assistance are based on debt negotiation or debt consolidation.
Debt Negotiation and Consolidation
Debt negotiation, also called debt settlement, is a process by which a debt relief company or an individual negotiates with creditors to settle a debt for less than the total amount that is owed. This method can be used with either a single creditor, like a credit card company or mortgage lender, or with several creditors. Sometimes, the creditors are then given a lump sum payment by the debt relief company, and then you make payments to the debt relief company which are much less than what you would have paid to the creditors over the years.
Debt consolidation, on the other hand, is a type of single loan that puts all of your debts to various creditors together into one monthly payment with one single interest rate that is usually lower than the rate you were paying your creditors. This type of loan is usually done by banks or credit unions and often requires some collateral, like your house or a retirement fund. Both debt negotiation and debt consolidation can affect your credit score, but if you make the payments on time, you can rebuild a good score over the years.
Call to Schedule a Consultation With a Minnesota Debt Relief Attorney Today
If you are interested in finding out more about debt relief, call to schedule a consultation with a Minnesota debt relief attorney today. The experienced legal professionals at the Hoverson Law Offices, P.A. have worked with debt relief for over thirty years and are ready to help you rebuild your financial life. Visit our website at hoversonlaw.com or give us a call at 612-349-2728 and let our financial legal experts help you move forward with monthly payments you can afford while you repair your credit record.