When you begin this process, you set aside funds each month into a separate, insured account.
While you're building up your funds, the company or lawyer you've selected negotiates with your creditors to try to reduce the total amount of debt you owe.
Most often, the required collateral is a second mortgage or a home equity line of credit.
This is incredibly risky because if you cannot meet your payments, your home is on the line.
Debt Management Program: These programs often work hand in hand with credit counseling.
During this program, you receive financial counseling and meet with a financial advisor.
These debt relief programs don’t have a negative impact on your credit but may limit your credit options for their durations.
Debt consolidation is worth looking at if you have at least ,500 of debt.When a settlement is reached, the funds you have been setting aside go toward paying your creditors and negotiation fees.These programs take around two to four years to complete and negatively influence your credit.After 100 hours of researching and calling debt consolidation companies, our top choice is National Debt Relief, which is one of the most transparent companies we spoke to.It offers top-notch customer service and its costs and fees are well in line with industry standards.