One major drawback of using National Debt Relief is the cost associated with their services. The National Debt Relief cost typically ranges from 15% to 25% of the total debt enrolled in the program. These fees can add up significantly over time.
When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.
National Debt Relief works by negotiating with your creditors to settle your debts for less than you owe. Once you hire National Debt Relief, they'll establish an FDIC-insured escrow account in your name. Then, rather than paying your creditors, you'll deposit a monthly payment into this account.
Duration on your report: Debt settlement can stay on your report for up to seven years. Debt settlement occurs when a company contacts creditors and negotiates a settlement on your behalf. The debt settlement company may ask you to stop paying your creditors and instead pay an amount into a separate account.
Keep in mind that the government doesn't offer grants to help Americans pay off consumer debt from things like credit cards. It does, however, offer financial support for Americans struggling with a range of tough financial situations.
If you do it right, debt consolidation might slightly decrease your score temporarily. The drop will come from a hard inquiry that appears on your credit reports every time you apply for credit. But, according to Experian, the decrease is normally less than 5 points and your score should rebound within a few months.
The short answer is yes, credit card debt forgiveness can negatively affect your credit score. However, the impact depends on various factors, including your current credit score and the specifics of your debt settlement agreement.
While there are no government debt relief grants, there is free money to pay other bills, which should lead to paying off debt because it frees up funds. The biggest grant the government offers may be housing vouchers for those who qualify. The local housing authority pays the landlord directly.
Perhaps the most common debts that cannot be discharged under any circumstances are child support, back taxes, and alimony. Here are some of the most common categories of non-dischargeable debt: Debts that you left off your bankruptcy petition, unless the creditor had knowledge of your filing. Many types of taxes.
If our long-term fiscal challenges remain unaddressed, our economic environment will weaken as confidence suffers, access to capital is reduced, interest costs crowd out key investments in our future, the conditions for growth deteriorate, and our nation is put at greater risk of economic crisis.
Credit Score Damage: One of the major downsides of debt settlement is the negative impact on credit scores. The process can lower a credit score by 100 points or more, depending on the individual's credit history. This can make it harder to qualify for credit, loans, or favorable interest rates for several years.
Yes, you can technically continue using your credit cards after debt consolidation as long as you keep the accounts open during the process. That said, whether you still have access to your credit card accounts post-consolidation may depend on a few different factors.
National Debt Relief is a legitimate company providing debt relief services. The company was founded in 2009 and is a member of the American Association for Debt Resolution (AADR). It's certified by the International Association of Professional Debt Arbitrators (IAPDA), and is accredited by the BBB.
There aren't any free government debt relief programs for credit card or personal loan debt other than bankruptcy. Many types of government debt relief exist in the form of grants and low-interest loans for specific purposes.
The borrower can apply for debt forgiveness on compassionate grounds by writing about the financial difficulties and requesting the creditor to cancel the debt amount.
Hardship programs are nearly identical to the debt management programs offered by nonprofit credit card agencies like InCharge Debt Solutions. Both programs make it easier to afford the monthly payments by lowering interest rates and eliminating fees.
If you're one of the millions of Americans struggling to repay high-interest debt, a debt relief plan may be an option to help you get your finances on track. But it's not a quick fix. It's a long-term solution designed to help you get out of debt over a period of time — typically several years.
FICO Score
Very poor: 300 to 579. Fair: 580 to 669. Good: 670 to 739. Very good: 740 to 799. Excellent: 800 to 850.
If you can afford to pay off a debt, it's generally a much better solution than settling because your credit score will improve, rather than decline. A better credit score can lead to more opportunities to get loans with better rates.