A credit card debt relief program can typically take 24 to 48 months to complete though this can differ by debt relief company and according to your situation. But if you have perseverance and pack your patience, the strategy can be an effective one. With that said, there are some other things you need to know in addition to how much time credit card debt relief takes.
Let’s take a look.
What is Credit Card Debt Relief?
Debt relief refers to a variety of debt solutions such as:
- Debt settlement
- Debt consolidation
- Consumer credit counseling
- Debt negotiating
Credit card debt relief can reduce the outstanding principal amount owed to your lenders, and in many cases lower your rate or extend your loan term.
Not all types of debt qualify for debt relief programs, however. Here are some types of debt which typically qualify for debt relief:
- Credit card debt
- Medical debt
- Loan debt
- Personal loan debt
- Private student loan debt
- Business debt
Debt Relief Fees You Should Know About
There are a variety of fees associated with debt relief programs. These fees vary depending on the company and are based on the amount of the enrolled debt as well as the debtor’s state of residence. These fees range between 18 to around 25 percent throughout the entire debt relief industry.
Advantages of debt relief
According to the experts at https://www.freedomdebtrelief.com, these are some of the main benefits of debt relief:
The Process is Simple
The debt settlement process is a relatively simple one; the consumer who is in a debt crisis simply signs up with a debt relief agency such as Freedom Debt Relief. After your situation is assessed, you’ll be asked to make monthly deposits into an account that you control. Once you have amassed enough cash to fund settlement agreements, negotiators will go to each of your creditors on your behalf and see whether they can, using your account as leverage, get them to settle your accounts for less than what you owe. They usually go along because if you file bankruptcy, they’ll probably get nothing.
It’s a Relatively Quick Method
While it may take you a couple of years to save up enough money for negotiations, once you do, negotiations happen relatively quickly. In fact, your first settlement usually comes within a couple of months. And remember, without debt relief, consumers with serious debt could be in their situation for decades.
It’s Cost Effective
A good and reputable debt settlement partner can reduce your debts by 25 percent and even up to 40 percent – or more.
Debt Settlement is reputable
Having helped thousands of people, debt relief is quite reputable. Most people have substantial debt, which can only be eliminated if the principal amount has been reduced. This can be done through debt relief.
Debt settlement can truly eliminate debt if the consumer sticks to the program. What does ‘sticking to the program’ mean? It means paying all monthly installments as agreed upon as well as communicating with the debt relief provider throughout the program.
Disadvantages of Debt Relief
Here are some disadvantages of debt relief programs:
As we’ve discussed, not every debt can be entered into the program.
Because the process of debt relief requires you to, rather than pay your creditors directly, put those funds into an account for later use, your credit will be damaged – temporarily. Your scores will bounce back after settlements are reached and you begin to rebuild your credit.
Ultimately though, how much time credit debt relief takes depends upon the amount of debt you need to clear, how long it will take you get the money together to fund settlement agreements and how serious you are about being successful with the program.