What is the Best Debt Relief Alaska Program?
Statistics show that Alaskans are no stranger to debt. They carry the most credit card debt per person compared to people in any other state. The average amount of credit card debt is just over $13,000. With an average credit card interest rate of 17.21%, the average person would have to make a payment of $254 a month to get rid of their credit card balance in three years. During that time they would pay more than $3,700 in interest. For many people, that is not a viable option which is why they search for a debt relief Alaska program. Let’s take a look at several debt relief options.
Debt settlement is often the most affordable debt relief option because debts can be settled for about half of what is owed. The goal is to reduce the overall balances, not just the interest rate or monthly payment. Many people struggle with making the minimum monthly payment, only paying the interest and very little of the principal amount owed.
Debt settlement may be a viable option to eliminate some of your debt, but not all of it. Unsecured debt is only included in debt settlement arrangements. Credit cards, personal loans, medical bills, and collection accounts are among the types of debt you can pay with a debt settlement. Mortgages, car loans, IRS tax debts, most payday loans, and student loans are not included.
If you decide that debt settlement is right for you, you can work with a debt relief company to walk you through the process. Although you can try to do it on your own, many debt relief companies have established relationships with credit card companies. They can often negotiate a better settlement for you than you could for yourself.
Debt consolidation is a general term that refers to the reorganization and possible merger of multiple bills with different interest rates and payments. Some people try to consolidate their debt if they have a high-interest rate on several accounts.
It is possible to save some money this way if you can get a lower interest rate and keep up with the payment. But, if you don’t change your spending habits or re-evaluate your budget, it is very likely you’ll end up in the same situation again.
Debt management or credit counseling requires you to meet with a credit counselor either in person, online or over the phone. During these conversations, the counselor will look at your monthly bills, debt, and income. They will work to help you set a budget that allows you to make your monthly payments.
Creditors typically offer lower interest rates on unsecured credit cards while in this program. Instead of paying creditors directly, you would pay the debt company one monthly payment. You would also have to stop using any credit accounts that are part of the plan. As part of the program, companies also charge a fee. The entire program typically takes about five years to complete.
At UmbrellaDEBT Relief, we try to help consumers negotiate a debt settlement plan since that is usually the most affordable debt relief program. If debt settlement is not right for them, we can refer them to a debt management plan or other options.
Contact Us for a Debt Relief Alaska Program
If you are struggling with debt and can’t make your monthly payments, contact UmbrellaDEBT Relief. We have an experienced team of debt negotiators who will look at your finances and advise you about the best debt relief program for you. Call Umbrella Debt Relief today to find out about the programs we offer and how they can help you become financially independent.