Debt Relief Programs

by Julie Super Mom from Wisconsin USA

Ask Kate about debt relief programs: Hi, Kate. After completing 3 international adoptions over the past 11 years, we owe $63,000 in credit card debt and a 2nd mortgage HELOC, (home equity line of credit). I used to grab teaser rates, then just keep transferring balances.

Julie continues... But now, the days of good offers are gone, and some of our cards have lowered the amount of further credit available to us. We have teaser rates that are ending, with nowhere to transfer the funds.

Any advice? Thanks, Julie

Kate Answers: Debt Relief Programs

Ask Kate at
Hi Julie, You're in luck because it just so happens I do have a thought or two on this matter!

I guess we could even say the current financial crisis is responsible for motivating you to make a change. But I won't go so far to call it a silver lining in the cloud.

Regardless, I am sure you would be relieved to resolve this burden on your finances. But let's first talk about debt relief programs also known as debt consolidation, debt management, and debt settlement, as well as alternate methods of borrowing.
Julie, in just a moment, I'll introduce you to my book, The Mortgage Freedom Project where you'll learn how to beat the bank at its own game by paying off your debt.

Debt Relief Programs - Debt Management and Debt Settlement

Debt consolidation allows you to get out of unsecured debt as quickly as possible. Debt relief programs present themselves in two major types of plans. There are important differences between these plans to consider. Let's take a look.

1. A debt management plan is an agreement between you and a debt relief provider. Briefly, unsecured debts are paid in full over time in a single monthly payment that is distributed to creditors by the provider.

In return, after 3 consecutive payments, most creditors will agree to reduce interest charges, eliminate late fees, and reduce monthly payments.

2. Debt settlement is an alternative to bankruptcy. Those who want to pay back at least a portion of their debt but cannot afford debt management may be candidates for debt settlement.

Monthly payments are placed into a settlement account. Then the provider works to negotiate with creditors for repayment, less than what is owed. Upon mutual agreement, settlement payments are paid from the account.

Debt Relief Programs - Debt Consolidation

Or maybe a simpler method of debt consolidation is better for you. Many institutional banks offer an umbrella type loan that pays off consumer debt, leaving the consumer with one manageable monthly payment.

The Mortgage Freedom Project

Julie, I think what you are doing is fantastic. Yes, you're a super mom! So do something today for yourself and your marvelous family. Get on the road to being debt free. You deserve it and so do those lucky babies!

Best wishes,

Ask Kate

PS If you still have questions regarding debt relief programs, write me at Ask Kate where every question is a good question.

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