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4 alternatives to a debt relief service to know
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If it’s difficult to keep up with your high-interest debt, you may have considered enrolling in a debt relief service. These services can offer substantial relief, often through negotiations – either of the balances you owe or the interest rates you’re charged.
But, debt relief services typically aren’t free. For example, if you opt for debt settlement, you’ll usually pay between 15% and 25% of your enrolled balance as a service fee following successful negotiations. And, other types of debt relief services charge fees, too. Moreover, some debt relief services may harm your credit score, making it difficult to borrow money in the future.
So, what should you do if your debt is overwhelming but you don’t want to deal with the financial and credit-centric repercussions of a debt relief service? We’ve outlined a few alternatives to consider below.
Learn more about your debt relief options now.
4 alternatives to a debt relief service to know
Debt relief services aren’t the only effective ways to save time and money while you pay off your debt. Here are a few alternatives to consider:
Home equity loans
A home equity loan can give you the money you need to pay your high-interest debts off at a competitive interest rate. Today’s average home equity loan interest rate is just 8.60%. That rate could offer significant savings compared to the 20% or higher interest rate you may be paying on credit cards.
And, with over $200,000 in equity available, if you’re like the average American homeowner, you shouldn’t have any issues accessing enough to pay your debts off if you have good credit.
Say goodbye to your high-interest debt today.
Debt consolidation loans
Debt consolidation loans are a common tool people use to cut the cost of high-interest debt. These loans may simplify the debt payoff process, and make it possible to save money as you do. But, if you take this approach, it’s important to ensure your new debt consolidation loan offers a lower interest rate than you’re already paying.
Financial hardship programs
Many financial institutions offer short-term financial hardship programs to help borrowers find security amid financial hardships. These programs may temporarily reduce your interest rate and payments. While lower payments may help you get back on track, financial hardship programs are not a long-term solution.
Negotiate on your own
Negotiations could be your path to a lower interest rate or lower balance. And, you don’t necessarily need a debt relief expert to handle your negotiations for you. All you may need to do is call your lenders and start the negotiation process. But keep in mind that while lenders may be willing to negotiate interest rates on accounts in good standing, you’ll typically need to be delinquent to negotiate a lower balance.
When to consider a debt relief service
Though dealing with your debt alone may seem like the best approach, that’s not always the case. The truth is that professional services may be able to produce better results for you than you would on your own. So, how do you know when to reach out to an expert? Here are a few signs that it may be time to do so:
- Your lenders aren’t willing to negotiate with you or you’re unable to reach reasonable terms.
- You’ve tried financial hardship programs but they don’t provide enough relief.
- You don’t qualify for a reasonable home equity loan rate.
- You don’t qualify for a debt consolidation loan with meaningful interest savings.
- You can’t comfortably make your payments on time.
- You don’t expect to be able to pay your debts off within the next three years.
If any of the above signs describe your situation, contact a debt relief expert. They should be able to help get you out of debt in a reasonable amount of time.
The bottom line
Debt relief services may not always be the best way to pay off your high-interest balances. Home equity loans, debt consolidation loans, financial hardship programs and self-negotiations are all viable debt relief alternatives. On the other hand, there are some situations where debt relief services make sense. If you’re having trouble making ends meet and have already taken the do-it-yourself approach with little relief, you should consider contacting a debt relief expert today.
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$100 million in federal funds released for North Carolina to rebuild roads, bridges damaged by Helene
Washington, D.C. – The U.S. Department of Transportation released $100 million in emergency funds on Saturday for North Carolina to rebuild its roads and bridges damaged by Helene.
“We are providing this initial round of funding so there’s no delay getting roads repaired and reopened, and re-establishing critical routes,” said U.S. Transportation Secretary Pete Buttigieg in a statement. “The Biden-Harris administration will be with North Carolina every step of the way, and today’s emergency funding to help get transportation networks back up and running safely will be followed by additional federal resources.”
The storm caused rampant flooding that has devastated several towns and killed more than 225 people – with CBS News confirming at least 114 people killed in North Carolina. There was more than 8 inches of rain across the western North Carolina mountains, with some areas seeing more than a foot.
Hundreds of roads across Western North Carolina remain closed, leading to an increase in air traffic as teams scour the region for survivors by air. Air traffic over Western North Carolina has increased by 300% due to relief efforts since the storm cleared, the Federal Aviation Administration and the North Carolina Department of Transportation.
Mudslides blocked Interstate 40 and other highways in North Carolina and about 400 roads were closed due to damage from Helene. Interstate 40 was damaged at several locations, the Department of Transportation said.
President Biden visited the Carolinas on Wednesday, surveying the flood damage by air from Greenville, South Carolina, to Asheville, North Carolina. Mr. Biden announced the federal government would cover “100%” of all debris removal and emergency protective measure costs in North Carolina for six months.
The Department of Transportation said these relief funds will allow the North Carolina Department of Transportation to act more quickly to fund eligible repairs to their damaged facilities.
Li Cohen and
contributed to this report.
CBS News
Tropical Storm Milton forms in Gulf; forecast to strengthen into hurricane headed toward Florida
Tropical Storm Milton has formed in the Gulf of Mexico and is forecast to strengthen into a hurricane headed toward Florida with possible impacts to its western coast, the National Hurricane Center said on Saturday. Maximum sustained winds are expected to be at 40 mph with higher gusts and Milton is currently moving north-northeast, NHC said in an advisory.
Milton is forecast to undergo a period of rapid intensification before it makes landfall as a Category 2 hurricane across Florida’s west coast, CBS News Miami reported.
The forecast comes a little more than a week after Hurricane Helene made landfall in Florida and across the Southeast, killing more than 200 people and causing immense destruction. President Biden on Thursday took an aerial tour of Florida’s Big Bend where Helene struck as a Category 4 storm. Hundreds of people are still missing and Mr. Biden said the work to rebuild will cost “billions of dollars” as communities suffer still without power, running water and passable roads.
NOAA
Milton is forecast to move across the southwestern Gulf of Mexico through Sunday night then across the south-central Gulf on Monday and Tuesday before reaching Florida’s west coast by the middle of the week, NHC said. Heavy rain is possible in the region starting Sunday into Monday, CBS Miami reported, and more rain and heavy winds will most likely arrive on Wednesday. Hurricane and storm surge watches will most likely be required for portions of Florida starting Sunday, the National Hurricane Center said.
Along with the heavy rainfall, the hurricane center said to expect risks of flooding.
Residents in the area should ensure they have a hurricane plan in place, the National Hurricane Center said, follow the advice of local officials and check back for forecast updates.
