Debt Relief Help
Many people seek debt relief help to get out of a financial crisis. Today, Americans owe billions of dollars they simply cannot repay, and every year, that amount increases. Many can only pay the minimum balance on a credit card. That means, it could take as long as 30 years to pay off the balance. The increasing rates will cost four times the amount of the original purchase! Spending has become a costly habit for so many consumers who can't break the cycle on their own. Growing bills are too overwhelming for many to handle. Facing creditor calls, foreclosure and even possible bankruptcy, individuals in a money crisis often keep borrowing more to stay afloat, but the financial burden grows deeper with every loan. But consumers are not left to manage the crisis alone. Professionals who are experienced in debt management and negotiation are available to help them get the debt relief help they so desperately need. Most of these programs are individually tailored to a person's unique financial situation and can be a lifeline for individuals who are ready to give up.
For individuals who need a little direction, credit counseling programs can be viable option. Credit counselors offer individuals financial advice and educational workshops to help them develop a working budget, manage their finances, get out of debt and learn to live on less money. Many are non-profit, receiving grants from the government to provide services free of charge or at a low cost that is affordable for people needing debt relief help. They can also help with investing for retirement, purchasing a home or vehicle, or recovering from identity theft. Creditors will often be a bit more lenient with individuals who are receiving financial counseling to get control of their finances. Taking advantage of counseling services generally will not appear on a person's credit report; however, further action that an individual takes to reconcile outstanding credit may affect a report to varying degrees.
Credit counseling programs often offer a debt management plan as a viable resolution for an individual needing more debt relief help. Counselors will work with creditors to lower monthly payments, reduce interest rates and establish a repayment plan that is affordable for the consumer and agreeable for the creditor. The consumer makes one monthly payment to the agency. The program takes care of negotiations with creditors, dispersing payments, and any additional communication needed. Often, the counselor can lower the total amount of payment or stretch it out over an extended period of time to make it more affordable. Consumers still remain in control of their debt. They can increase the amount of monthly payments as finances allow, but they also remain responsible if payments are missed or delayed. Fees for debt management programs range from agency to agency. Some agencies use the consumers first few payments to cover charges while others will take out a percentage of each installment. Consumers must be careful to learn the method of payment and any additional fees before choosing a program.
Consumers in more dire situations may choose a debt consolidation loan or settlement as an alternative to filing for bankruptcy. Banks and other financial institutions offer these types of debt relief help. Individuals who consolidate, take out a separate loan to cover all other existing loans. Often rates for these loans are lower than traditional loans. Loans that are secured against a valuable asset, such as a home, carry even lower rates. These home equity loans have become very popular as property values have increased. But borrowing against a home can also be dangerous. If the borrower defaults on the loan, he or she risks losing a home. Plus, property values can drop, leaving the homeowner with less equity and even more debt. Another alternative to bankruptcy is an out-of-court settlement. In this case, a creditor will reduce the actual amount owed to regain part of the money lost if the consumer cannot pay the amount back in full. However, most of these options will appear on an individual's credit report and will lower credit scores and possibly keep them from being approved for credit in the future.
As a last resort, when all previous options have been unsuccessful, people seeking debt relief help can file for bankruptcy. Filing under Chapter 13 consolidates all debts under one repayment plan managed by the court system that is often less than the total amount owed. Repayment is usually complete within 3 to 5 years. Liquidation under Chapter 7 bankruptcy is more severe. In this case, a person's assets are sold to pay off outstanding balances. Bankruptcies serious impact a person's credit report and will remain on file for ten years. Plus individuals facing bankruptcy face public embarrassment and often a lasting stigma among their friends and family members. But individuals who undergo this option must remember that God is a God of forgiveness. "Fear not: for I have redeemed thee, I have called thee by thy name; thou art mine. When thou passest through the waters, I will be with thee; and through the rivers, they shall not overflow thee: when thou walkest through the fire, thou shalt not be burned; neither shall the flame kindle upon thee." (Isaiah 43:1b-2)
Debt relief help is available for those who seek it and truly work to reconcile their financial problems. In addition to the programs in this article, there are many software packages available to help individuals get financial assistance. By entering in detailed data on all outstanding accounts, including amount, interest rates, minimum payments and mode of payment, these programs can help identify bad spending habits, configure the best repayment plan option, and establish a savings strategy. People needing financial assistance have many options, including handling repayment on their own. But getting debt relief help is nothing to be ashamed of. Not doing anything would damage personal finances even further.
International Debt ReliefThe topic of international debt relief is highly controversial. Campaigns to change the economic status and bring relief to underdeveloped countries began in the 1990s. Not until the late 1990s and early into 2000 were more initiatives and coalitions developed. The past decade shows changes brought to economically challenged countries through businesses, organizations, and movie actors. For example, a few organizations and actors have created methods to help the less fortunate in underprivileged areas. These methods include food supplies, medical teams, and services for children. Movie stars spend time and effort to establish organizations to bring change. Some actors even spend their time in the underdeveloped country trying to bring change by being actively involved in the change process. Other actors use their publicity to bring the underserved countries to light. Even royalty has been involved in the process to bring recognition to the plight facing other countries and be involved in change processes. Only they would that we should remember the poor; the same which I also was forward to do (Galatians 2:10).
International debt relief are brought by initiatives that provide help with debt and poverty relief while bringing about social change that will produce positive change to the economy. While the debt relief does not solve the problem facing the country, assistance brought in begins a trickle down affect that provides liberation to the population. The aid provides some to total debt forgiveness. The reform that occurs from the aid affects communities by establishing public services and utilities such as electricity and water. The hope with providing help is that the growth of debt will slow or totally stop.
For a place to be eligible to apply for international debt relief or forgiveness, important factors need to be in place. A country must show a vast financial burden and meager financial circumstances. A country must also develop and produce a plan for economic growth and stability after balance absolution. The developed plan must show the potential for social reform in a very apparent manner. The plan must also depict a strategy for the reduction and possible total elimination of poverty for present and future generations. The applicant must then demonstrate the ability to be proactive and show a positive performance in accomplishing the goals set forth. If after a one-year period passes and the applicant have proven them self worthy, the country will then be eligible to receive partial or total debt forgiveness.
However, the controversy begins. Some experts argue that partial and total debt forgiveness helps and should occur. Other experts disagree. Good questions surface in viewing the aspects surrounding international debt relief. Government personnel and various organizations argue and question each other. People look at the economic situation and wonder who is stuck paying the balance. If loan forgiveness occurs, who pays? It becomes a Robin Hood scenario, robbing the rich to give to the poor. The argument rises that the country left paying for the unpaid balance of an economically challenged country is an industrialized country. The industrialized nation then decreases public services provided to their inhabitants and then needs to raise taxes to cover the extra expenditures.
One of the problems facing international debt relief is the corruption found at government and other official levels. Countries insist that previous governmental agents caused the current strain on the fiduciary means. Other nations claim corruption of the military serving the nation. Therefore, the argument remains. How can international debt relief provide reprieve? Various coalitions say that conditions need to be attached to the aid while other organizations say no conditions should be added. While reducing spending and deleting balances is an ideal situation, the reduction process could adversely affect the citizens of the nation. Reduction of the spending might affect what monies help to fund health, welfare, and education. Corruption in government agencies has led to cooked books with erroneous facts of the financial plight of the nation. One bad apple can spoil a whole basket. Because of the corruption found in the politics of some authoritative figures, providing help with loan forgiveness causes the need to incorporate tough preventative measures.
Coalitions dealing with the welfare of other nations see a variety of bad apples in the mix of financial hardship. Crooked administration also brings bad policies, fraudulent loans, and poor loans into the economic jumble. While corrupt government creates create havoc on the financial history, the lack of proper government and rules creates civil unrest thus leading to a continued break down of civilization. Each factor affects another and produces a weak economy, blocks progress, and produces the opportunity to continue in the path of economic dependence. With so many challenges, rallying for international debt relief is hard.
Many businesses, people, coalitions, and other agencies support the need for international debt relief. People acknowledge that support and debt forgiveness encourages and enables better management of fiduciary accounts, provides opportunities for growth, and promotes social progress. The idea to support third world development continues to rise and progress is occurring. Suggestions for development and encouraging fiduciary growth bring new challenges and opportunities. One topic in discussion and being implemented involves new import and export methods, thus hopefully creating new jobs, raising economic stability, and providing new and different goods and services to struggling places. Another means of support involves creating newer and better loans to improve the financial structure of the people. Besides financial and other economic changes, improvements are being made to improve living conditions. Improving living conditions could have a ripple effect too, thus affecting positive change.