Government consolidating credit debt
So, if you have a balance of ,000, your required payment would be between 5 and 0 per month.
If you can afford to pay more each month, consider an "optimized payment" strategy that accelerates your time to get out of debt.
Editor’s Note: There is a lot of information available on how to consolidate debt, but much of it is confusing.
cuts through the fog with simple tips and tricks you can use to consolidate debt wisely. A smart first step is for you to define your goals.
If you want to avoid bankruptcy, debt settlement is a viable and recommended alternative by the Federal Trade Commission.
Under debt settlement, a debtor can receive a lump sum agreement or installment through which he or she will pay off debt at a reduced, fractional rate of the total account balance, perhaps at around half, or more or less depending on the debtor’s situation.
You need a clear understanding of what you want to achieve and how it will benefit you, in order to make the right debt consolidation choice.
Filing for Chapter 7 or Chapter 13 Bankruptcy can plague you with a set of challenges, such as lawsuits, monetary judgments, or garnished wages which you may want to avoid, not to mention the long term impact on your credit score which it may incur.
You can also perform a similar optimized payment process using the Snowball method where you start with your smallest account first (to get a personal sense of progress, by paying accounts off and achieving your goals) and then roll ALL of that payment up to the next account, and so on.
Both Avalanche and Snowball require discipline and significant free cash flow in your budget, to make any real progress in paying off your debts.
If the Court reviews your records and finds your debt to be eligible, you may be granted partial or full relief.
If you are facing credit card debt, this is the closest to a credit card debt relief government program.