5 Truths About Debt Relief Programs

Having mountains of debt can seem like an unbeatable feat, especially when searching for manageable solutions. While there are hundreds of seemingly viable options online to help with the situation, the truth about debt relief programs is that there are just as many myths as there are truths in the financial business. Distinguishing between the two starts with looking for debt relief programs, like the one with Liberty Debt Relief, that specialize in helping individuals set personal financial goals.

Understanding these five truths about debt relief and the related services can get you started with the program that will put you back on top today.

No. 1: Getting Help is Possible

Dealing with creditors on your own can be daunting. Getting experienced advice and assistance from debt relief companies, like Liberty Debt Relief, can help you navigate your financial hardship, whether it be active unemployment, medical emergencies, or even a difficult divorce. The first step is contacting us to learn more about exactly how we can help in your unique situation. Then, if debt settlement is for you, we can contact your lenders directly. If debt consolidation is more appropriate, we can point you in the right direction. It really is that simple.

No. 2: Bankruptcy Should Be Your Last Option

Bankruptcy should always be a last resort, but. if you are approved to file as such, just keep in mind that many of your major debts, such as some student loans, taxes, and child support, remain in your hands, and you are still required to make payments to them regularly. Along with being a more expensive route (between all the filing fees and attorney costs), being bankrupt remains public information for years. Of course, if you choose to work with a debt relief program and reach out to Liberty Debt Relief, you will receive tons of information about this option, including the types of bankruptcy and whom to contact for further assistance.

No. 3: Enrolling in a Program will Not Protect You from Future Debt

Settling your debts is a great effort to reduce the amount you owe at the moment, and they also serve as valuable lessons for all consumers. A good debt relief program will teach you how to manage your money more wisely and efficiently so you can remain debt free. If you do not take the lesson you should be learning to heart and only view the program as a ‘get out now’ solution, then there is a good chance you could end up in debt again. It takes time and a lot of financial tracking on your part, but you will eventually find yourself debt free and happier than ever.

No. 4: Debt Settlement is More Affordable than Debt Consolidation

Before making a choice to settle or consolidate, you must understand the difference between the two. Debt settlement is when a company like Liberty Debt Relief negotiates with the loan or credit company so you may be able to pay a smaller lump sum, rather than to struggle with the payments of the original amount owed. This method is best used with a single company rather than a number of different creditors because negotiations take time and focus on the part of debt relief companies. In the end, however, your debt may even be decreased by half! Even better, the cost to you for signing up in such a debt relief program is limited to fees the debt relief company will only charge once your debt is settled and you are in better financial health.

Debt consolidation, on the other hand, is when you combine all of your outstanding balances into a new loan, usually with a lower interest rate, so that you can better keep up with what you owe. While the length of your loan also changes, you end up owing the same amount over time and are required to maintain your monthly payments. Though debt consolidation is a great option for many, the amount of debt does not change as it does with a settlement. The best way to decide between settlement or consolidation is to seek advice from those experienced in debt relief programs and figure out the pros and cons that will help you reach your goals.

Liberty Debt Relief knows there is no universal solution for everyone. When it comes time to seek outside help regarding your finances and debts, keep an open mind and speak to our certified debt experts to find the solution that works best for you.

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Debt Relief Tips Every Millennial Should Know

Millennials and Debt

Millennials tend to have a lot of notable characteristics — being tech-savvy, striving for an education, and having a large sense of global presence are just a few. They are also the largest generational population in the western world, which is why the relationship between them and their finances is so important.

According to recent studies, three out of every four millennials are in debt, and a quarter of those owe more than $30,000. This millennial debt has seemed to continuously grow, which is causing many people in the 18- to 34-year-old demographic to put a hold on starting families, seeking more advanced degrees, and even purchasing homes. Despite this high rate of financial instability, there are plenty of credit repair services millennials can seek out to make sure they stay above flooding debts. Here are Liberty Debt Relief’s main tips:

Prioritize Your Debts

There is no denying that adulthood is expensive. Between paying for the astronomically high price for higher education and being able to afford a decent apartment, food, a car, and bills, it is a wonder that anyone has extra money lying around these days. The high rates of all these expenses are why credit cards and loans are so popular among younger people and why millennials and debt are a familiar pairing.

Luckily, getting out of a sticky financial situation can be done. The first thing to do is to prioritize your debts. The credit card or loan with the highest interest rate should be worked on first, because that debt will accrue the most interest over time. While you dedicate a significant amount of money to this specific debt, make sure to pay the minimum payments on your other accounts to keep your credit score in check.

Budget Expenses

Budgeting is key to a successful financial future for anyone seeking asylum from debt. To do so effectively, make sure to record all of your stable income for the months to come, as well as any other extra pieces of income you can expect. Next, record all of your regular bills and payments, such as rent, insurance, car payments, and gas and food, so you know exactly how much you have to pay companies every month to maintain your standard of living. Whatever money is left over from that should be divided between relieving your debt, savings, and miscellaneous items.

Live Below Your Means

Getting out of debt takes years, and such a task should not be taken lightly. To make sure you are not one of the thousands of millennials getting buried in overdue bills and debt, try living below your means for a few years. If you make $40,000 a year, for example, look for utility companies, apartments, and insurances that will allow you to live like you actually make $36,000 a year. Make sure to factor in your credit card and loan payments into that amount, and you can choose to either pay off your debts earlier or even use that money to set up a retirement fund or investment account.

Check Your Benefits

A lot of employers want to help rid the problem of millennial debt. If you work full-time, check with your employer to see if they offer any tuition assistance or student loan repayment options. If you work in the public service sector — which many millennials do — you may even be eligible for the Public Service Loan Forgiveness program, which forgives your remaining student loan forgiveness after you make 120 monthly payments. Those working in government, non-profit organizations, AmeriCorps, or the Peace Corps are likely qualified to take part in this program. Since the millennial generation is also known for being one of the most socially conscious generations, it may be worth it to turn that trait into a career!

Kickstart Your Savings

Along with living beneath your means, one of the best ways to avoid the notorious millennial debt is to start saving money early. Many times, excessive debt stems from unforeseen circumstances, such as a family or health emergency, and having a backup fund available can help eliminate those issues. Some banks even add substantial interest to your savings, so you can make money by simply having a savings account.

Understand Your FICO Score

FICO scores are a crucial chapter in adulthood and should be kept up with regularly by everyone looking to avoid unfair credit rates. Your FICO score is determined by how often you make payments, the types of lending accounts you have, the length of those accounts, and your debt to income ratio and is usually the major deciding factor in what kinds of loans and credit cards you can obtain. Many of the worst cases of millennials and debt occur because someone signed up for a credit card or loan when their credit score was low and they received a crippling interest rate that made it nearly impossible to pay the original amount back. By staying ahead of your score and actively taking steps to improve it, you can eliminate the risk of getting high interest rates and fees that create a disastrous amount of debt.

Being a millennial and being in debt does not have to go hand-in-hand. The years of youth are meant to be enjoyed to the very fullest, and by adhering to a few simple debt relief tips, you can be a millennial who comes out on top of debt and live a life free of financial worry.

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Combining and Consolidating Your Shared Debt After Getting Married

Dealing with Debt in Marriage

Marriage is the gateway to a life full of new experiences. As soon as you say ‘I do,’ you open yourself up to being equal with your partner, emotionally, spiritually and yes, financially. But what exactly does being a financial equal with your spouse mean? Newlyweds often have dozens of questions about shared debt and how you go about resolving it. Luckily, Liberty Debt Relief has the answers. For those asking themselves if when you get married, do you share debt, the answer is not black and white.
Dividing the Debt Can be a Solution
Sharing debt in marriage is not automatic by any means. Unless you sign onto a loan or credit card with both of your names, debt can only impact the actual account holder, aside from death, divorce, or annulment, which is something that states typically decide. Couples can choose to keep their individual debts separate to avoid complications, but most do choose to join their finances to create a more unified marriage in all possible aspects. The answer may seem a little alarming, especially with how much debt has taken over U.S. households, but, don’t worry, because sharing the debt may actually be a step in the right direction, depending on your situation. Seeking credit counseling services before you make such a large financial decision can help you and your spouse kick off marriage in the best and most fiscally responsible way possible.

Get Interested in Less Interest

The average student now carries almost $40,000 in student loan debt, and when one student marries another, the cost of education can seem a lot higher. If you and your spouse both have private student loans, you may be in luck and can look into combining and consolidating your debts so that you can work together to tackle the financial burden. If one of you has a better credit score than the other, combining your debt into a single loan could significantly lower the interest rate so you pay less interest combined than you would separately. Since you will be paying the amount together, you may also be able to pay off the total in less time so that you can spend the bulk of your marriage saving for retirement rather than fighting your way out of long-term debt.

Considering Federal Loans

While consolidating private loans is a viable option for many couples, federal loans can be a different story. Typically, federal loans are the best kind to get as an individual because they offer numerous benefits. Students, for example, can generally wait until six months after they graduate to begin making payments, can request to be part of income-based repayment plans, and, generally, have significantly lower interest rates than they would with private lending companies. If you are planning to get married while attending college or soon thereafter, your best option is to keep your federal loans as they are. Doing so will not only prevent you from having to worry about spending hundreds or thousands of dollars just on loans while in school but will also allow you to maintain a lower interest rate and better your credit score.

Get the Credit You Deserve

Joining current loans and other debts is not the only financial situation that newlyweds (or soon-to-be newlyweds) need to consider. Debt in marriage can occur even after you say ‘I do.’ Many couples, for example, open up joint accounts, whether that be in the form of co-signing loans, opening checking and savings accounts, or applying for a credit card that you both have access to. If you decide to open up a new credit card, for example, you can look into completing a balance transfer and moving another debt to this new card so you are both responsible for it. Having a joint credit card account can help couples work as a team to tackle finances while also building both individuals’ credit scores, but couples should only go this route if they are comfortable having equal responsibility for joint finances.

Making a Two-Way Plan

If you are considering combining your debt in marriage, you should make sure that sharing this particular expense is something you are both completely comfortable with. Money is often a large problem for couples, and it is better to be upfront and ask your significant other, ‘When you get married, do you want to share debt?’ rather than find out later down the road. In a way, it is good to consider “dating” your spouse’s finances before tying the financial knot. Spend time learning exactly how many credit cards your partner has, the length of their credit and loan accounts, how well and often they stick to payment plans, their spending and saving habits, and all of their financial obligations.

Speak to the Experts

If unifying your debts sounds as good as unifying your families after learning all of this information, then the best way to get started is to work with Liberty Debt Relief to determine individual debts, lending companies, interest rates, credit scores, and incomes. The individual you work with will create a credit relief plan to help you both decide how much each person will pay towards the consolidated loan every month and how long it will take you to be out of debt as a couple.

At the end of the day, finances should not dictate a relationship, but understanding the financial history your partner will bring into your new marriage is crucial to its success. If you are looking to combine and consolidate your private loans, credit cards, and other forms of debt while in marriage, asking for outside help from legitimate credit repair companies, such as Liberty Debt Relief, can help you find out your state’s requirements, narrow down a financial goal, and make plans to achieve that goal. Set aside some time to meet with Liberty Debt Relief today and start taking your steps down the aisle of success.

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Liberty Debt Relief Can Help You Get Out Of Debt For Good

The Benefit of Debt Help Companies

Years of tuition and books, price inflation and never-ending bills catch up to the best of us. Every day, millions of people find themselves immersed in more and more debt. In fact, according to a household study completed by NerdWallet, 2017 saw the highest amounts of debt to date, with U.S. consumers totaling more than $900 billion in credit card debt and more than $1 trillion in student loan debt.

Figuring out your future when the financial game seems stacked against you can be equal parts difficult and stressful, but, with some experienced assistance from debt help companies like Liberty Debt Relief, you can join the other millions of people who have successfully erased their debts within a few years. We know that there is no one-size-fits-all when it comes to debt solutions, and we are here to help you come up with the financial plan that gets you out of debt and keeps you out of debt for as long as possible.

A Financial Epi-debt-mic

Before tackling your financial hardships, it is important to know that you are not the only person looking to debt help companies for assistance. Many people in the United States are in debt and struggle to pay off their credit cards, mortgages, car payments and student loans. And while there are many types of debt that people have attached to their financial portfolios, the most common debt across generations is related to credit cards. With high interest rates and the option to make minimum payments, millions of people are opting to simply ‘get by’ and rack up thousands of dollars in excessive fees.

Recent reports have found that income has not maintained an equilibrium with the rising costs of living. Via a study done by the Kaiser Family Foundation, medical expenses and the cost of food have increased by 34 percent and 22 percent, respectively, in the last decade, while the average income for U.S. consumers has yet to go above 20 percent, making it nearly impossible for people to go above and beyond in their fiscal responsibilities.

Identifying the Problem

The first thing debt help companies, including Liberty Debt Relief, will want to know during your first meeting is how you ended up in so much debt in the first place. Understanding how you joined the demographic of those experiencing financial hardship is crucial to pinpointing a custom solution. The best way to figure out how you ended up in your financial situation is to take a look at your spending habits. For most U.S. consumers, their debt can be traced back to medical expenses, unemployment, higher education, unforeseen emergencies, divorce, and even combatting a gambling addiction.

While the debt rate for all of these categories is at a historical high, the two most prominent issues are that of medical expenses and higher education, according to that same study by the Kaiser Family Foundation mentioned earlier. The cost to attend college is at an all-time high and, despite this increase, people are earning the same amount after graduation as they did years ago. This correlation has put millions of students in high debts that they simply cannot afford to pay back in a short amount of time.

Of course, it does not help that health care rates have also increased, making it virtually impossible for people, especially young adults, to get ahead of the financial game. The lack of funds in these specific situations leads to people spending more than they can afford, and consumers will even open new lines of credit to help alleviate the pressure from older accounts, which only speeds up the downward spiral.

Coming Up with the Right Solution

There is no single solution that works for every consumer who is in debt. Every situation is unique, and debt help companies should treat them as such. When you meet with Liberty Debt Relief, you will learn about the various ways that you can get out of debt, including debt consolidation, debt settlement, and other relief strategies to make a specific plan to relieve your financial burden as soon as possible.

There is no reason why you have to be one of the millions of people in the U.S. suffering from excessive debt. There are dozens of debt help companies available and numerous options to settle your financial situation in just a few short years. Some of those choices can be difficult to make, but the easiest one is working with Liberty Debt Relief. Get the financial help you need, and start working toward a better financial future today.

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How To Keep Credit Card Debt Down During College

Dealing with Credit Card Debt in College

Academics are not the only priority students need to make throughout college. The hundreds of textbooks, tuition payments, school supplies, and outings usually add up quickly and tend to leave thousands of recent graduates with a daunting amount of credit card debt from their time in college. The good news is that, while getting into that financial rut tends to be a lot easier than many people think, getting debt relief is possible and builds lifelong habits that will streamline your success.

To make sure you are not one of the many who graduates with an ‘F’ in financial responsibility, sit down and take some notes on how you can keep your credit card debt down in college.

Make Financial Health A Priority

Before even attempting to understand the ins and outs of getting your own credit card, it is crucial to understand that your financial well-being can directly affect your overall health. Place your financial success on the same pedestal as your academic and health accomplishments and think of your finances as a priority instead of a resource.

Imagine, for example, that you are standing in the middle of a platform that is balanced by your priorities in its four corners: mental, emotional, physical, and financial. If one of those corners is too heavy or too light, you fall over and it becomes difficult to regain balance. Accruing too much credit card debt in college has the same impact — as soon as you let it get too heavy, you become unbalanced and it is difficult to get back on your feet. Money is not everything, but it definitely impacts your general quality of life and should be treated as such.

Don’t Overindulge in Card Offers

Almost as soon as you open your first textbook, you will likely be swarmed with dozens of credit card offers. As tempting as it is to apply to each one, credit cards are not free money and you can find yourself in serious financial trouble if you are not careful. That being said, having a credit card is a great way to build your credit score to help you get better student loans or maybe even get a new car when it comes time to begin your career.

An optimal choice to minimize credit card debt for college students is a credit card designed specifically for students. These cards will have significantly lower interest rates and fees and sometimes even have special offers for full-time students, such as deferred payment methods or cashback opportunities. Regardless of which card you choose, make sure to limit the number of credit accounts you open and to check all the fine print before signing up.

Familiarize Yourself With FICO

A’s are not the only scores to strive for throughout college. When opening lines of credit, it is absolutely essential to understand that every account plays into your overall FICO credit score. This score acts as your financial grade point average, and is generally the first impression businesses and banks get of you when you seek more financial opportunities in the future, whether that be applying for another credit card or loan, purchasing a car, or renting an apartment or home.

FICO scores are determined by multiple factors and range from 300 to 850 where 850 is excellent and 300 is poor. Thirty percent of your overall score depends on how much you owe and how much available credit remains, 35 percent depends on your payment history, 15 percent is determined by the length of your credit accounts, 10 percent is determined by the types of credit you have, and the remaining 10 percent of your score depends on how much of your credit is new. The higher you allow your credit card debt to grow in college, the lower your score will likely be upon graduation and the more difficult delving into adulthood may be.

Aim For An ‘A’

Now that you understand your FICO score a little better, it is important to work hard to improve it. A high credit score means you are considered a low risk to potential lenders and can help lower interest rates while increasing spending limits and financial flexibility. To ace your financial literacy and set the curve for credit card debt for college students, set a plan to improve your FICO score.

This can be done by making higher payments more regularly, using your credit for smaller purchases that you can pay off within the billing cycle, keeping accounts open for longer terms, and refraining from maxing out your card every few months. Generally speaking, students who own credit cards are most successful when using the cards only for essential items or for emergency situations. Never use your credit card for luxury weekend excursions or to treat yourself to an expensive item that you wouldn’t be able to afford without a large line of credit.

Work, Work, Work and Work A Little More

Yes, college is difficult and academics take priority, but a little scheduling and time management can go along way, especially when trying to build your financial repertoire. Getting a couple part-time jobs, freelancing gigs, babysitting opportunities, or even a full-time job can significantly lower your chances of going into extreme debt, especially if your first few months of financial freedom took a heavy hit on your bank account. This is not to suggest that every student has to work 60 hour weeks on top of courses and extracurriculars, but if you do happen to come across a financially burdensome situation, it is always better to try and solve it sooner rather than later.

College is all about learning and planning for a successful career in the future, but a big part of that education comes in the form of financial literacy. Take the necessary steps to stay out of credit card debt in college and you will be sure to secure the positive and successful financial future you have always dreamed of.

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Should I Take Out A Personal Loan to Pay My Debt or Get Debt Relief?

Debt is an intimidating circumstance. With people in the U.S. reaching a combined credit card debt of more than $1 trillion in 2017, it can feel nearly impossible to escape money’s grip, especially since that number continues to increase. This financial weight has led thousands of people to consolidate their debts in an attempt to get instant debt relief. While this method works for some, it may not be the best way to get out of debt for everyone. If you are trying to figure out your next steps and think a personal loan may be the best way to go out of the available debt solutions, take the following factors into consideration first.

Paying a Debt with More Debt Should Have Explicit Benefits

In the end, taking out a personal loan to pay off other loans or credit cards is just using debt to forego debt. You do not truly get debt relief this way, at least, not immediately. However, there are times when consolidating your payments into a single form of credit may be beneficial. As an example, let’s say that you owe about $3,000 in debt on one credit card with 21 percent interest, $5,000 on another card with 18 percent interest and have a $10,000 private loan with 15 percent interest.

If you are wanting to repay each of those debts within 10 years, you are facing more than $19,000 in interest charges alone, and that is assuming you make your payments on time and don’t have to extend the life of your loan. In this case — which is a relatively common scenario for people — it would definitely be worth it to take out a single loan for the exact amount owed with no higher than a 12 percent interest rate for five years.

The monthly payments will likely be higher than what you were originally paying for the credit cards and loans separately, but going this route could save you thousands of dollars. If you can afford it, you would benefit even more by getting a personal loan with lower interest, but regardless, it is crucial to do the interest math on any credit card or loan before signing on. Interest charges are no joke and are a sure way to end up in even more debt while trying to consolidate what you already owe. Plus, if you have trouble paying on time, this could only add more issues in terms of late fees.

Loan Consolidation Should be a Last-Ditch Effort

In the example above, a consumer in that kind of situation has a relatively moderate amount of debt and probably has an average credit score. If you have more than $50,000 in debt, however, taking out a personal loan may not be the best way to get out of debt, especially if that debt is spread over multiple accounts. Using a personal loan to straighten your finances is worthwhile only if it can help you pay off your debts within the next five years or so, as that is a great amount of time to improve your credit score and save tons of money on interest charges. Like many people, getting debt relief in that amount of time is simply not a visible solution.

A good question to ask yourself before consolidating your debt into a personal loan is “Will this loan allow me to pay off all my debt within five years?” If the answer is no, then you should look into other options and speak with a legitimate debt relief company, such as Liberty Debt Relief, to discuss better options.

Changing Your Habits, Not Your Bank Account, is Your Saving Grace

When all is said and done, the only way to truly get out of debt is to change your spending habits and create a better and more sustainable financial plan. If you are simply looking for an easy way out of your financial burdens and have not changed your spending habits or budgeted properly, then taking out a personal loan to consolidate your debts could likely lead you to accrue more debt. Signing a new loan does not make the other ones go away, and, in order for debt consolidation to work effectively, you have to make the full payments every month.

Unlike credit cards, there is no minimum payment option, and prolonging the life of your loan can seriously lower your credit score while increasing your total interest paid. If, on the other hand, you have come up with a solid financial plan to get debt relief and are confident in your ability to manage spending, then taking out a personal loan to pay off your debt could very well help.

The climb to get out of debt is a trek that millions of people face every day, and it can take years to finally get out of the rut. Luckily, there is plenty of research and information available to find the solution that works best for you and your particular situation. If you are looking to get out of debt within the next five years or so, consider working with us at Liberty Debt Relief. We may even be able to work with your creditors to settle your debt for a lower, more manageable amount! Contact us today!

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