In 2018, the total consumer debt amounted to $3.898 trillion, 7.6% higher from 2017. In 2019, the total credit card debt has already touched $1,067,914,000,000 figure. According to statistics, debt per citizen is $67,741. As such it can be easily concluded that people are in financial problems and they need help. Professional debt relief services help people to overcome their current financial problems without wasting any money.
It is nothing but partial or total forgiveness of consumer debts. When you’re overwhelmed with multiple high-interest bills due to irresponsible use of credit cards and loans, you need the help of debt relief services to lower your financial burden.
Once your bills are paid off, you can clean your credit report and take steps to improve your FICO score. Without a good credit score, you can’t qualify for a loan or credit cards at a low-interest rate.
These programs work on the principle of eliminating your debt burden in a consistent manner. Some programs work on the principle of lowering your payoff amount whereas others work on the principle of reducing your interest rates.
For more help with debt relief, you can call 800-OVLG-530 or visit this page.
Those who want to control their expenses and lead a frugal life
Those who can manage bills after getting debt relief counseling
Those who can’t manage multiple bills simultaneously
Those who want to lower the payoff amount
Those who are ready to liquidate assets and pay off debts
Mon Apr, 2018 Review: Client MR1 from NY saved $2836.28
Client satisfaction level: Read case study »
* Client names have been changed to protect privacy
Lots of debt relief programs are there. But which one is the best? Here are the 4 ways to find out.
Well, OVLG helps you choose the best option through it's unique Waterfall Approach to debt free™ life. This approach helps you to:
Ans: It depends on the program you’re choosing. If you opt for debt settlement, your credit score may drop slightly since you’re paying less than the original amount. But you can always rebuild your credit in the following ways. Debt consolidation or management helps to improve your credit score gradually. Honestly speaking, it’s all about the utilization ratio.
If a debt solution (be it settlement or consolidation) helps to lower your overall utilization ratio (balance-to-limit ratio), then your credit score will increase. Suppose, your overall utilization ratio drops from 90% to 20% after settling or consolidating credit cards. In this scenario, your credit score will improve.
Just make sure you don’t close your credit card accounts since that would again affect your utilization ratio badly. If you have a high utilization ratio on one card, you can counterbalance by having a low overall utilization rate.
Ans: Usually, credit card debt relief programs work for most people. However, exceptions are always there. Here are a few ways to make these programs work for you:
Ans: Hardship programs are a bank’s loss mitigation effort for collecting debts. Usually, banks offer these programs when existing account holders fall behind their payments due to financial hardship like job loss or prolonged illness. These programs create a repayment plan as per the affordability of account holders. So it becomes easier for them to make payments.
Ans: In a hardship program, creditors lower the interest rate, reduce fees, and pull down the minimum payment amount so that consumers can pay off the credit card balance. The idea is to help consumers and also reduce their loss margin.
Ans: Usually, it lasts for 6 months to 1 year. In some cases, it can last permanently till the balance is paid off.
Ans: You don’t have to pay any upfront fee to OVLG for settling or consolidating your debts. All you need to pay is a success fee of 15% on the total enrolled debt. You have to pay the fee after a debt has been paid off. You have to pay a monthly consultancy fee of $50 for 30 minutes consultation with our savings consultant, tax attorney, and budgeting consultant. This fee is adjusted with the success fee after your debt is paid off. If you opt for budgeting and bill payment services, you have to pay $50 for the first 10 monthly recurring bills. Thereafter, you have to pay $5 for every extra bill.
Please note: The fee structure varies from companies to companies. OVLG charges a very nominal fee for managing your debts. But most law firms charge a higher fee for settling or consolidating your debts. Some fraudulent companies don’t even follow the FTC rules and guidelines. They charge an advance fee without doing anything. Know more about OVLG fee structure
Ans: You have to pay tax if the creditor forgives more than $600. Suppose, you accrued a credit card debt of $20,000. Obviously, you didn’t pay any tax on that amount since that was not your income. You used the money for fulfilling your needs but didn’t pay back your creditor. Thereafter, you enrolled in a debt settlement program, negotiated with your creditors, and convinced them to reduce your payoff amount. If the creditor agrees to reduce your payoff amount to $11,000, you have to pay tax on it since the IRS will consider $9000 as your income.
Ans:There are several nonprofit debt consolidation and settlement companies who can help with debt relief and discover various ways to save money without charging any fee. Some nonprofit credit counseling agencies charge a nominal fee for offering solutions that are best suited to your financial situation.
Be careful when you work with a nonprofit company because fraudsters always want to take advantage of cash-strapped consumers.
There are numerous instances where consumers have been scammed by fake nonprofit debt settlement or consolidation companies. Scammers open fake nonprofit companies to lure consumers with the promise of ‘free debt relief services'. Once consumers join the program and disclose their confidential financial information, scammers stop all sorts of communication. They use all the financial details for their own profit.
A nonprofit organization has a 501(c)(3) certification. Before working with a nonprofit organization, check if they have the mandatory 501(c)(3) certificate.
Ans: Like IRS, the federal government has lots of repayment plans for the distressed borrowers. Some of them are:
Ans: The IRS has the power to garnish wages or seize assets when you don’t pay tax. So it’s better to get tax debt relief before it’s too late. Here are a few options you can take advantage of:
Ans: Well, you don’t need to file bankruptcy for paying off your credit card debts. There are other ways to get rid of debts. You can enroll in a debt settlement program to lower your outstanding balance. OVLG can help to reduce your debt at an affordable fee.
If you don’t want to settle your credit card, then you can use a consolidation program to pay back your creditors. A consolidation program helps you pay off debt at a lower interest through an affordable payment plan.
Ans: Google is your best friend when you're exploring options for debt relief near you. Just type ‘debt relief near me’ in the search box. Google will do the rest of your job. They will show you the list of companies that are near your location. Check out the reviews and client testimonials of those companies to know which one can give you the best resolution. Call all the companies one-by-one and ask about the fee structure, tenure of the programs, and privacy policy to make the final decision.
Ans: Before you make the final decision, there are a few questions you should ask a counselor to avoid getting scammed. Here are a few of them:
Ans: There are various ways to choose reputable debt relief companies. Some of them are mentioned below:
Hi,
Welcome to OVLG. Today, we are going to talk about debt relief programs - what we offer and how do they work.
Our first debt relief program is bill consolidation.
Most people who are working with a debt relief company are in a pretty bad financial situation, mainly due to the lack of a proper budget and the inability to manage multiple bills. We, at OVLG, give you a personalized budget plan to save money and a bill consolidation program to simplify your bill payments.
In this program, we give you a single repayment plan for paying multiple bills, and that too at a low-interest rate. That makes sense because instead of paying 24% interest to credit card companies, you’ll pay anywhere between 14% to 16% to us. And, you just make 1 payment instead of 8 payments. Plus, your credit stays pretty clean.
Our next debt relief program is debt settlement
This is usually considered the best debt relief program because you pay only the negotiated debt amount. That helps you to save a lot of money. And, all you have to do is save a certain amount so that we can start negotiating with creditors as soon as possible.
Another program is a debt management plan. This program is a lot similar to bill consolidation. The only difference is that we offer a customized budget plan along with an affordable repayment plan. So you get 2 benefits at one go.
Finally, if nothing works out, you can file bankruptcy. Usually, we don’t recommend this program to our clients because there are too many laws and fees. Plus, you could end up your assets too. But then again, it’s your call
All right guys! Like always it has been a blast. So, next time, don’t feel bad when you’re in debt. A lot of us are in the same condition. Just call our Toll-Free number to get the rescue boat you have been waiting for so long.
Last Updated on: Mon, 17 Aug 2020