Paying a debt sustainability is not easy, to say the least, you pay more than you borrowed in terms of interest and other charges such as origination and attorney fees. While a debt offers you the utility benefit of meeting your current needs at the time that you want, meeting repayment obligations can be disrupted by unforeseen events such as the COVID 19 mass job layoffs, inflation, among other uninsured emergencies.
These events can affect your disposable income and limit your ability to pay your credit with adverse consequences on your credit score.
If you are in a financial abyss, learning how Freedom Debt Relief works can give you a new lifeline and offer you a chance to turn over a new leaf. It will be the first critical step towards taking charge of your finances legally.
Debt Relief Is For Unsecured Loans Only
It is important to note secured loans are not eligible for a loan relief program because they are tied to physical and tangible assets. The properties can be disposed of by the owners of or foreclosed by the financial entity for loan recovery.
Debt relief specifically applies to unsecured debt such as some types of student loans, hospital loans, credit card debt, personal loan debt, and some business loans. However, for student loans, there is a moratorium in force up to September 2021 where loan interests are suspended, and you can take a break from repaying your debt especially if you have been adversely affected by the COVID pandemic. Meanwhile, you should contact your student loan lender for guidance.
Debt Negotiations On Your Behalf
Freedom Debt Relief negotiates with your creditors on your behalf. The goal of the engagement is to ensure that your creditors let you off the hook with payment of a lumpsum amount. On the creditors’ part, they usually forfeit some benefits such as interest rates, and some additional charges in force while aiming to either recoup what they had advanced you fully or a portion of your loan.
As entries on the Freedom Debt Relief reviews dashboard will attest, Debt relief can be a win-win negotiation for all parties, particularly since you stand to default on your repayment given your dire financial situation. If that is the case, your lender is likely to lose their money if you don’t take this step.
The Credit Score Plunge Is Short-Lived And Less Severe
Credit scores are updated in real-time and the data captures the slightest financial distress that you have. Hence if you are in financial distress and likely to be delinquent, you have the option of filing for debt relief, consolidation, or bankruptcy.
The impact of consolidation and relief on your credit score is almost identical since some weighting factors such as repayment history and credit period are affected. Bankruptcy on the other hand results in a deeper reduction of your credit score over a longer period.
To get a clear picture of how Freedom Debt Relief works, it is essential to note that the objective of consolidation is to consolidate all your credit into a single facility for easier payment at lower interest rates. Debt relief offers you practical and meaningful reprieve since some of your debt is written off and you are consequently able to start rebuilding your credit score in due course.
Simply put, Freedom Debt Relief offers a way through the problem, where at first glance there may appear to be no options available. Debt settlement is indeed a viable means of clearing most unsecured financial obligations, as long as you understand all of its ramifications.