No one wants to be in debt, but sometimes customers accrue debt due to unforeseen circumstances, like an accident or because of the loss of a job. If you have accrued debt unexpectedly, then you may be eligible for a debt resolution program.
Debt Resolution Definition
Rescue One Financial defines debt resolution as a way to pay off the unexpected debt by rolling debt from multiple sources, often with varying interest rates and repayment fees, into one payment per month with a consistent interest rate.
With debt resolution companies, clients will be paired up with a financial planner or consultant who will help the client find the best way to repay their debt. This does not mean that the client will not have to repay their debt, but that they can have more options for paying down what they owe.
Many debt resolution companies work by restructuring debt. This works, in part, by lumping several sources of debt into one payment. This may work by the debt resolution company paying off the creditors, with the client paying back the debt resolution company in monthly payments. However, it should be noted that not all companies work in the same way, and the company may not be able to lump together all debts.
Debt Resolution Benefits
What are the benefits of using a debt resolution company? The primary goal of using one of these companies is to lower the total amount of owed debt. On top of that, these companies can help to make easy-to-understand repayment plans with only one interest rate to keep in mind.
On top of debt repayment, some debt resolution companies also help their clients to deal with annoying collection agency calls, avoiding bankruptcy, and giving general financial advice.
If you are considering restructuring your debt to make it easier to pay off, consider consulting with a debt resolution company. These companies work to make paying off debt simple and fast. They do the math so their clients don’t have to!