Doctor Debt - Debt Reduction Programs

Debt Reduction Programs

Debt reduction programs are for those "indebted" to creditors.

Lots of Variety in Debt Management Programs

Have unexpected medical bills thrown your finances into a tizzy? Or maybe your student loans are keeping you from getting started in life, let alone getting ahead! Or maybe these kinds of bills are causing you to use your credit cards more just to get gas, groceries and other necessities. Or maybe you put your medical bills on your credit card! All of these things can wreak havoc on your finances. If it's happened to you, you need to learn about debt reduction programs.

There are five different professional debt reduction programs to help you deal with these debt problems, and it's to your advantage to check them out. Why? Because they all focus on debt reduction by getting your interest rates reduced. Some can even get your overall balances reduced. And most of them can have you out of debt in five years! Although these debt reduction programs have the same common goal, they are all somewhat different. Check 'em out:

To get a debt consolidation mortgage, you have to be a homeowner. You get a check to pay off your medical bills, credit cards, non-government student loans and any other unsecured debts. Instead of paying it back separately, that amount is added to your mortgage. This means you get the same low interest rate as your mortgage (which you get to write off partially on your taxes) and if you have a 30-year mortgage, you have 30 years to pay it back. Yet your debts get paid off immediately. Sure, your house payment goes up a little, but not a lot. This is definitely the best debt reduction program, but again, you have to be a homeowner.
To get a debt consolidation loan, you have to have collateral such as a car or something of equal value that's paid for. These are popular debt reduction programs because you can pay off your unsecured debts immediately, then you just have one single monthly loan payment. And since the interest rate is usually in the single digits (much less than what you're paying now) you can be out of debt in five years! (It would take you 13 years or more on your own.)
For student loan debt consolidation, you need at least $10,000 in unpaid student loan debt. These debt reduction programs combine all your outstanding student loans, gives them one super-low interest rate and lengthens the repayment period so that your monthly payment is actually affordable.
To enroll in a debt settlement program, you need to have a sizable amount of money saved up. You don't have to have enough saved to pay everything off in full, just enough for a debt settlement agent to use as a bargaining chip to get 60-80% shaved off your debt. Once the reductions are made, you have to pay the new balances off immediately. And since these debt reduction programs aren't a favorite with your creditors, they will report your participation in them to the three credit reporting agencies.
If you don't qualify for any of these, you can still get help through a debt consolidation program. For this reason, it's the most popular debt reduction plan out there. When you enroll in a debt consolidation program, a debt management company contacts your creditors to get your interest rates reduced. Sometimes they can get past fees removed too. Then they combine all the new, lower balances and you make one monthly payment to the debt consolidation payment instead of many monthly payments to your creditors. Your creditors will divide your payment among your creditors, and you will be debt free in five years.

Another benefit of enrolling yourself for debt reduction assistance is that your creditors will be required by law to stop harassing you. Then you'll have freedom from them and freedom from your debt.