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Debt Relief

Reliable Debt Relief Options Provided by Financial Experts with Years of Experience

We provide debt relief solutions to clients of diverse needs.

Struggling with debt is stressful. Feeling the weight of inability to cover the payments every month leaves borrowers in constant despair. The situation gets worse if you have a family because you need to make sure that they have access to the most basic necessities. Combining these challenges with the pressuring attitude and harassing calls of lenders creates an extremely frustrating scenario. Fortunately, even at the times of complete hopelessness, there is a light that guides you to the debt-free future.

The First US Financials is here to relieve you of your debts and get the financial weight off your shoulders!

Credit Counseling

This option of debt relief allows debtors to contact a third-party expert and discuss their financial standings. The counseling usually lasts from 45 minutes to an hour. During this discussion, debtors explain their financial hardships and share the details of their loans. Experts, on the other hand, analyze the situations and make recommendations.

One such advice can be repayment or debt management plan. Experts analyze your ability to pay based on your income and outstanding debt. Then, in the best case, they negotiate with the creditors. The results of these negotiations can be lower interest rates, temporary cease of the payments, or a settlement agreement. No matter the solution, debt repayment or management plan requires borrowers to stop accumulating debt. For example, if the borrower has a credit card debt, he/she should give up the card. However, it is not easy for everyone. Many people struggle to afford their lives without borrowing. It should also be considered that the management plans last around 4-5 years. In such an extended period, debtors find it difficult not to receive any credit. Therefore, the chance of failing on this debt management plan is high.

If you agree to a management plan, you will most likely be required to make one payment per month. This payment can be lower than the current total payments. Then, the agency allocates the amount among the creditors, as agreed with them. Despite its disadvantages, this program helps debtors to reduce the stress and pressure they face from the creditors. The reason for this advantage is that lenders only communicate with the third-party agency, instead of the borrower. If you also have penalties for late payments or any other charges, they can be waived as the aim of this debt relief is to assist you in making loan payments on time without additional challenges.

Debt Consolidation Program

Sometimes, borrowers have multiple loans, with different due dates and minimum payments. They have poor control over the debt and can miss the payments. .Hence, it can be hard for them to keep track of all payments. In this case, one of the best debt relief programs is debt consolidation. This program joins multiple loans under one account. As you make one monthly payment for all your loans, it becomes more manageable. Also, consolidation can bring another advantage, which is a lower interest rate. It means you might have lower monthly payments than before. However, the total outstanding debt amount does not change. You still owe the same amount to creditors.

A simple way of consolidation can be through getting a new loan or financial resources from an acquaintance. In this way, you can cover all your existing debts and pay a lower interest rate. This interest is the lowest when you get a secured debt. It is called secured because you back your obligations with collateral, such as a house. As you decrease the risk of non-payment, you can get lower interest rates. However, if you become unable to pay out the debt, you can lose your home. Another option for this debt relief program is an unsecured loan. In this case, you do not need to support your claims with collateral. Therefore, the lender faces a high risk because the borrower does not have much to lose if they do not meet their obligations. Hence, creditors demand higher interest rates than secured loans. However, the interest rate can still be lower than what you paid under the non-consolidated case.

Disadvantages of Debt Consolidation

The benefits of the program highly depend on individual cases. There is no one debt relief plan which fits every borrower. While debt consolidation brings many benefits, it also requires much time. The loan you can get to cover existing debt can last ten years. In extreme cases, home equity loans even in the last thirty years. Therefore, though you pay less every month, in total, you pay for a more extended period. You should also keep your finances under control while utilizing this debt relief program. If you continue accumulating debt, you can find yourself in a worse situation than before.

Debt Settlement

This simple debt relief program is usually preferable to other types of plans because of its many benefits. While some people have a hard time understanding how the settlement works, it is a relatively simple process. The settlement involves the negotiation between the creditors and the borrower. Debtors can communicate with the lenders by themselves or get third-party help from expert negotiators. However, self-initiative means that you will be required to spend much time and effort trying to convince the creditors. Also, the process will mostly end with failure because many individuals do not have the skills for persuasion. In general, you need to have strong arguments and proofs to back up your claims. For instance, in the case of job dismissal or medical conditions, borrowers have a better chance of convincing creditors to settle.

Settling means that debtors pay the obligations once in a lump-sum amount. In return, the creditor agrees to receive a reduced amount of debt than its original volume. Therefore, borrowers need to collect money before the creditor wants to settle. This process involves stopping all the payments to individual creditors. Instead, you open a savings account and make monthly deposits there. Later, you will pay to your creditors the settlement amount from this account.

Credit Score

One of the downsides of this debt relief program is its negative effect on credit performance. A credit score is an essential criterion for credit claims. Usually, lenders assess the reliability and riskiness of the individuals with the help of this score. Sure, when you stop making payments to creditors as a requirement of debt settlement, your credit score becomes lower. However, many debtors experienced an upward trend in their credit performance once they settled with the creditors. The score might return to its previous level or become even higher after getting rid of the debt.

What Are You Still Waiting For?

You do not take any risks or obligations for our services. You do not need to make payments beforehand, and we offer a 100% refund if you are not satisfied with the service. As we value honesty, transparency, and customer attitude toward our services, we hope you do not have any question marks in your mind by now. However, if you are still confused and worried, contact our experts now and direct your questions or concerns.

Bankruptcy Declaration

Filing for bankruptcy should be the last resort of debtors as a debt relief solution. There are two reasons for this claim. Firstly, if you have any other chance than bankruptcy, you would not probably be able to prove that you have to file bankruptcy. The rules for it are so strict that a bankrupt person should be living at the poverty line and not survive if he/she pays the debt. Only in this case, the court decides to allow a debtor to declare bankruptcy.

The second reason is that even if you are not eligible for any other debt relief program, this decision's negative effect lasts for a long time. The disadvantage of bankruptcy is its impact on credit score. It can keep the score low for as much as ten years. Therefore, you will not be able to get credit in the future, or you will face higher than average interest rates. Such an event also affects other decisions, such as employment. Nowadays, employers can check the background of employees, and bankruptcy hurts your image as a good decision-maker. Simple life processes like getting insurance or renting an apartment become a challenge if you have a low credit score.

Two Types of Bankruptcy

You can apply to Chapter 7 or 13 bankruptcy. Chapter 7 involves the liquidation process. It means, some assets will be sold to pay the debt to creditors. While some assets are exempt from the liquidation, they can also be eligible depending on their values. Meanwhile, Chapter 13 does not get you out of debt instantly. Instead, it allows debtors to reorganize their debts in a way that they can afford monthly payments. Therefore, you are still required to make payments.

Self-Payment

Sure, you can also reject all these debt relief programs, and take the initiative to solve the situation on your own. This method is worth trying, but there is a low chance that individuals will be able to achieve success. First, you already accumulated debt, which proves that you lack financial knowledge. Second, soft skills like effective communication, negotiation, and persuasion are necessary, which many borrowers might not have. Yet, self-payment can help you eliminate the fee paid to the third-party experts.

Even if your decision is self-initiative, we want to help you with some details of the debt relief process. First, you need to prepare a plan to understand your challenge and the goal. One of the simplest methods to better visualize the situation you face is through creating a spreadsheet. In this spreadsheet, you need to gather and note the total outstanding debt, minimum payments, deadlines, and some information about the creditors. In this way, you will be able to evaluate the scale of the problem you are dealing with.

Next, you can contact each lender and explain your financial difficulties to them. You need to indicate some documents to prove that you are in an inescapable situation, and without their help, you will not be able to meet the obligations.

What can You Achieve?

By convincing creditors, you can achieve several benefits of debt relief programs. First, they can decrease the interest rate, which means you will be required to pay less interest each month. If your financial situation is not hugely out of control, then some interest reduction can be helpful. Second, creditors can allow you to stop payments temporarily- for a few months. You can use this time to recover the finances and set some money aside for future payments. A third option can be organizing a new repayment plan which you can afford. Lastly, you might convince the creditors to settlement. It means the lenders will receive the debt in lump-sum form, but in a less amount.

Difficulties of Self-Payment

While all the benefits of self-initiative are desirable, they are hard to get. Convincing creditors is no easy piece of cake. It requires patience, time, and effort. While negotiating with the lenders, it takes only an instant to lose your temper and start a conflict. In this case, angry creditors will not be likely to agree to reduced payments. You also need to prove that there is no other solution than the mercy of the creditor.

The difficulty you face in the process of debt relief is why you need to get expert help. Our team has relations with an excellent network of creditors, whether it is a bank or a hospital. They have years of experience in this field and helped many borrowers to get debt relief. Therefore, it is best to leave the task to the professionals, instead of wasting your time and nerves.

Ready to Get Rid of Your Debt?

If you still do not know which debt relief program to utilize, we are here to guide. As soon as you contact us, we will collect much information about your financial standing, including the outstanding debt and income level. Our experts will analyze your situation and challenges to find the best solution for you. Once you agree to the resolution, we will start working together to get you out of debt as soon as possible.

There is No Reason to Wait

We provide all our services at Zero risks to you. You do not have to pay us until you benefit from the debt reduction. Plus, debtors can quit the partnership whenever they want without being required to pay penalties.