Are you seeking debt relief programs in Riverside, California? We can help you understand your options, and make a good decision when it comes to your financial future. The various debt relief options available will consider both your ability to pay, but also your financial net worth as primary considerations. These need to be combined with your financial and family goals so that you can anticipate upcoming expenses and be prepared for them. The counselors at Debt Support Center will meet with you by phone to offer an extensive review of your situation, and thereby recommend a detailed approach that is tailor made to your circumstances. Prior to having that one-on-one consultation, we would like to offer you a top-level view of your debt relief options in Riverside.
One of the most common options Riverside consumers often seek is a consolidation loan. This is a loan that may be secured by your personal guarantee, enabling you to pay off smaller, individual debts to receive an often reduced monthly payment. These options used to be easier to qualify for, but in the advent of lower credit scores (and more hesitant lenders) they can actually be very difficult to get. This often means a higher interest rate and longer term, which in the end results in a lot of additional interest expense. Because unsecured loans are tough to find, most borrowers turn to the next form of consolidation covered below.
Home Equity Lines of Credit:
Homeowners used to view their home equity as a nest egg, helping them retire with less risk and lower monthly payments. In recent years, this has changed as banks have targeted homeowners will appealing offers to tap into that equity in order to take vacations or in our discussion, consolidate their unsecured bills. Is it smart to take unsecured debt and collateralize it by your home? Many experts suggest it’s unwise. While interest rates are lower and tax-deductible in many cases, it’s a bet against your future security should you become unable to repay the loan. Home equity loans are certainly an option that can be considered a debt relief program in Riverside, but it may not be your best one.
Debt Management Programs:
Another option for debt relief in Riverside is credit counseling or debt management. These programs have gain some popularity due to their “non-profit” status, which in reality refers to the 3rd party companies that facilitate your payments and distribute them to your creditors. While opinions widely vary, some feel that the “donations” these non-profits often receive from the credit card companies they negotiate with on your behalf creates a conflict of interest. That’s not to say these are bad programs. They can help a certain type of person who has enough money to make what is sometimes a larger monthly payment than anticipated. While this is often the last stop before bankruptcy, as is now required along with taking the Means Test, it can in fact provide some debt relief if you can stay the course. Many Riverside consumers turned to debt management prior to the emergence of debt settlement programs, which are much more aggressive but also present a new dimension of benefits as well.
Debt negotiation or settlement is the process of satisfying your unsecured debts for amounts that are lower than previously obligated for repayment. Think of it this way. If you owed your friend $100, but found yourself on hard times and unable to repay for months, he may offer to settle for less than the amount. His logic would be “something is better than nothing,” and this is the similar position that your creditors begin to take if you’ve missed payments for a period of time. Unlike the example of owing your friend who may be willing to work with you, creditors play by a different set of rules. This is where a 3rd party comes in to assist you with the negotiation phase and legal nature of the agreements. While there is much more to understand about debt settlement in Riverside, this analogy will help you grasp the nature of how it works. If successful, you may be able to settle your debts at very reasonable amounts, and escape the encumbrances of your debt in a much faster period of time.
We Offer Debt Relief Programs to Riverside Residents
These options are the most common debt relief options that people are seeking today. The best solution will be driven by your individual situation, including affordability and financial goals. If you’re unsure of which solution is best for you and your family, give us a call. Our experienced counselors are more than happy to discuss your situation, and recommend a debt relief option that best meets your needs. Give us a call today!