Debt Assistance in Texas

Over the past decade, debt has reached an all-time high. The average household income has simply not caught up to the rising cost of living. Like many Americans, applicants for federal benefits in Texas often struggle with debt problems. Fortunately, you do not have to declare bankruptcy or waste any more time and money dealing with your debt.

Other Texans have found simple and effective solutions to their debt through debt assistance programs. Here are some brief explanations of debt assistance options that will help you turn your life around today.

Debt Consolidation

If you are required to pay a few different debts each month, you know that it is easy to forget to make all of your payments on time. Unfortunately, these missed debt payments result in fees and a lower credit score, making your problems worse. If you have experienced this problem, then debt consolidation may be the perfect solution for you.

When you consolidate your debt, you take out a loan that pays off all of your existing debt. Then, you only have to pay off this single loan each month. Having just one monthly payment makes paying back your debt simple, and it ensures you avoid late payments. Debt consolidation also makes financial sense, as it allows you to pay a lower monthly payment with a much lower interest rate.

Debt Settlement

Debt settlement is a form of debt assistance that allows you to negotiate with creditors for a lower payment. If you choose debt settlement, you will enlist the help of a debt settlement company trained in working with creditors. The debt settlement company will negotiate a lower debt payment that you can pay off in a lump sum. The payment will be much less than the amount of debt you actually owe.

Credit Counseling

Credit agencies will usually provide free credit counseling from trained and experienced credit counselors. A credit counselor will offer you financial advice and education to help you manage your current debt and avoid debt problems in the future. Today, most credit counseling agencies will provide convenient online or phone-based counseling sessions.

Debt Management Plan

Debt management combines the benefits of all the other debt relief options. A debt management agency will consolidate your loans into one simple payment. The agency will also negotiate with your creditors to waive fees and lower your payment and interest rate. Finally, a debt management agency will provide you with counseling and financial education to help you take control of your financial future.