What types of debt can debt relief help with?
Whether you're dealing with mounting credit card balances, personal loans or any other type of debt, doing so can be unsettling in today's inflationary environment. With the Federal Reserve's typical response to high inflation levels being rate hikes, you may be dealing with higher interest rates and payments on your debts than you had a couple of years ago while you cope with higher costs at gas pumps and in checkout lines.
However, you may be able to reduce the monthly and overall cost of your debts with a debt relief service. The companies that provide these services typically negotiate your interest rate, principal balance or both with your current lenders in order to help you save money and get out of debt faster. But, there are several different types of debt out there. So it's important to understand which types debt relief can help with.
Get in touch with an expert to find out how quickly you can get out of debt now.
What types of debt can debt relief help with?
Debt relief companies typically specialize in helping their clients address unsecured debts. These are debts that aren't protected by any form of security, whether that be a security deposit or asset of value like a car or house. That means debt relief services can usually help with the following types:
- Credit cards and charge cards
- Personal loans
- Medical debt
- Student loans
It's important to note that debt relief providers may not be able to help with secured debts like auto loans or mortgages. So, if you're having a difficult time keeping up with secured debts, it may be wise to contact your lender and talk about the debt relief options they may provide.
Are you struggling with unsecured debt? Get the relief you deserve today.
Why it's best to enroll in debt relief now
If you're having a hard time making payments on unsecured debts, it may be wise to seek debt relief now.
As a backdrop of persistent inflation refuses to fade, it may be increasingly difficult to make ends meet. And, if prices continue to rise at uncomfortable rates, the Federal Reserve may increase its target federal funds rate (the benchmark rate for consumer interest rates). If that happens, the minimum payments on your variable-rate debts (like credit cards and some personal loans and student loans) may rise - creating an even tighter budget crunch.
"Inflation is hitting everyday Americans and income hasn't kept up with price increases, so borrowers are feeling the burden," says Aaron Cirksena, founder and CEO of the financial planning firm, MDRN Capital. "People in this situation should look for relief where they can get it."
But today's stubborn inflation and the potential for higher interest rates and minimum payments in the future aren't the only reasons that you should enroll in debt relief now. Here are a few other reasons you should reach out to a debt relief service:
- Some debts can take decades to pay off: Some debts, like credit card debt, focus the majority of your minimum payments on interest. Unfortunately, this means that some debts can take decades to pay off. But debt relief services may be able to get you out of debt within a few years.
- Waiting longer to address your debt can lead to more stress: Debt can be stressful and debt relief can help relieve that stress by creating a reasonable plan to address your debts.
- Debt gets more expensive with time: Interest is a time-based cost. The longer you take to pay your debts off, the more interest you will typically pay. However, when you enroll in a debt relief service, your provider may be able to decrease your interest rates, leading to immediate savings. Moreover, addressing and paying your debt off quickly can lead to substantial savings when compared to the cost of making minimum payments over the life of some debts.
The bottom line
If you're dealing with mounting debt and don't expect to be able to pay it off in the near future, it's time to make a change. And, reaching out to a debt relief service may be an effective way to make that change. That's especially true if your debts are unsecured. Reach out to a debt relief expert today to find out how much time and money you can save on your debt payoff journey.
