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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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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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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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How Can I Keep Debt From Ruining My Retirement?

Dealing with Debt in Retirement

Planning the future can be exciting, especially if you have big goals ahead for when you can finally retire. Some people envision a large home and plenty of cars, while others see themselves on a quaint property so they can travel around the world for months on end. Regardless of where you see yourself in 10, 25, or maybe even in 50 years, those large goals come with significant planning and work.

These days, putting money to the side every month is simply not enough to eliminate any debt in retirement and create the financial padding most people need for a laidback future of luxury. In order to create a bound, set, and determined retirement, you have to manage your debt as efficiently as possible. Even if you save thousands of dollars, that money means nothing if you owe that same amount or more to credit card companies, private loan institutions, or other entities that loaned money to you years ago.

If you are one of the thousands looking to make sure your debt doesn’t ruin your future in retirement, consider the following steps to debt settlement:

  1. Tally up Your Financials
    The first step in securing a positive financial future is by making sure you will not have any retirement debt. To do this, make a list of all the money you have and what you owe for bills, loans, credit cards, or other matters. Knowing your income to debt ratio is the only way to see and understand how you can move on to step two and prioritize your spending until you can come out on top.
  2. Prioritize
    Everyone has different responsibilities and priorities, but the process to preventing debt in retirement is essentially the same for all — prioritize your spending. After writing down your expected income every month, list out your common expenses in order of most to least important. Typically, this should usually begin with monthly bills and payments and end with leisure expenses, such as entertainment, dining out, or other activities that aren’t absolutely necessary from month to month. The items listed at the top of your expenses are an absolute must, and the items toward the bottom should be expenses you can easily reduce or eliminate in order to get out of debt so you can fund your retirement.
  3. Make a Plan
    Preventing debt in retirement takes work and perseverance, and the best way to make sure you’re successful is by writing out a set plan. Let’s say, for example, you make roughly $4,000 a month, have approximately $2,000 in essential bills, and are $50,000 in debt from credit cards and student loans. If you were to put $1,200 every month toward paying off that debt, you could essentially accomplish this in three-and-a-half to four years, depending on your interest rates and any other income you could put toward them.Considering the hundreds of thousands of people who spend decades paying off their debts, four years is nothing in financial terms. Even if your specific situation varies from this example, go about configuring your plan the same way — determine the maximum about of money you can allocate toward your debt every month without diminishing your bank account and just stick to it. Write it out, set reminders, and post it around your house, if necessary, to stay motivated to succeed. If you need help planning, contact Liberty Debt Relief to see what our experts can advise.
  4. Ask for Help
    Sometimes, getting out of debt means asking for help when you feel like you are out of options. For example, a debt settlement, spearheaded by the financial experts at Liberty Debt Relief, may help you get out of debt a bit faster. We have spent years building relationships with various creditors, so we can work with your lenders on your behalf. Our experts will speak to you about your unique situation, determine your goals, and then negotiate with creditors to possibly reduce the amount you owe. This could save you thousands, and the smaller debt should be more manageable for you to pay off much sooner.
  5. Stay on Track
    Out of all the steps in lowering your debt, the most important one needed to diminish your debt in retirement is simply to stay on track. Your financial health is as equally as important as your mental, emotional, and physical health and should always be treated as such. For some people, staying on track means writing their goals down every day, some people need to inform their closest friends and family members, and others need a professional financial advisor. How you go about meeting your goals is irrelevant as long as you complete them and establish the financial security you need for as little retirement debt as possible.

Whether you are a recent college graduate or an established Wall Street executive, it is never too late to demolish your debt and plan for the retirement of your dreams. Having debt in your retirement doesn’t have to be a terrifying realization, and eliminating such a thing does not have to be a far-fetched idea. All it takes is a few hours of planning and a few years of hard work for you to bid a final adieu to your debt and welcome a life free of all financial worries. To work with the experts at Liberty Debt Relief and get their support during your debt settlement negotiations, please contact us soon.

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Liberty Debt Relief’s Guide to Getting Out of Debt Fast

The Need for a Debt Relief Plan

One of the biggest concerns facing Americans today is financial debt. According to LendingTree, a website that provides loan comparisons, the total amount of consumer debt in the United States could reach $4 trillion by the end of 2018. That would be a new record.

In fact, Americans owe greater than 26 of their annual income to debt, per LendingTree—a worrisome rise from 22 percent in 2010. Indeed, credit card debt is escalating, as are debts on auto loans. Luckily, Liberty Debt Relief can help you build a strategy to get out of debt faster.

Designing a Sound Strategy

If you are one of the many Americans wondering how to get out of debt faster, there are some important steps you can begin today that will help.

1.  Crunch the Numbers

The first step in your debt relief plan should be to figure out exactly what you are up against. Start by opening up Microsoft Excel or Google Drive and create a spreadsheet. Then, you can write down what you owe, who you owe that money to, and include the various interest rates. Doing so will allow you to wrap your head around what needs to be done.

2.  Set Clear, Achievable Goals

People looking to get in shape see better results when they craft workout and nutrition plans. Musicians are more likely to improve when they stick to stringent practice routines. Likewise, those attempting to get out of debt will enjoy more success when they incorporate explicit goals into their debt relief plan.

Laying out your financial objectives can make the journey seem less daunting. For example, say you owe $6,000. That is a significant amount of money, but it is more manageable when you decide to pay back $250 each month for two years.

Additionally, reaching intermittent goals, even if they are small, can feel incredibly gratifying. And when you feel that kind of pride, you will be more likely to stay on course in the future.

3.  Evaluate Your Spending Habits
Do you spend a lot of money on goods or experiences that are not necessities? If so, you need to alter your spending habits. Make coffee at home instead of going to a cafe each morning. Cook at home more often. Skip the movie theater and watch a film on Netflix. Don’t add to your wardrobe when you don’t have to buy new clothes.

Each of these steps may feel small individually. Together, however, they can have a large, positive impact on your debt relief plan.

4.  Find Extra Work on the Side

You may have heard the term “gig economy” in recent years. In essence, it an environment where people can take on extra work on the side as a way to supplement their earnings. Freelance, part-time, and temporary opportunities are not new, but in the last decade, technology has led to far more of them than ever before.

couple holding a piggy bank with money falling out

Here are some ways you can improve your debt relief plan with extra income:

  • Drive for a ride-sharing service
  • Deliver for an on-demand food service
  • Rent out a home or room through online lodging services
  • Perform on-demand labor jobs
  • Find skilled positions—writing, proofreading, translating, graphic design, web development, etc.—through online freelancing job boards.
  • Take online surveys that pay by the hour
  • Tutor or teach

5.  Wisely Allocate Funds When a Debt is Paid Off

Let’s say you dedicate $300 per month to pay off Debt #1 and $200 per month to pay off Debt #2. After a year, you finish paying off the first debt but have a ways to go with the second. You could hold onto that extra $300 each month—or, you could allocate it to Debt #2. Making this adjustment to your debt relief plan would help you reach your financial goals at a quicker pace.

6.  Sell Things You Don’t Need

A lot of people have valuable goods sitting around the house that they no longer use. Instruments, jewelry, electronics, art, sports memorabilia, furniture, children’s toys, books, clothing, fashion accessories—as long as they are in good condition, all of these items can bring you valuable cash.

Holding a garage sale is an effective way to get rid of household goods and inexpensive objects. If you are trying to sell expensive things, however, you would be better off going to a pawn shop or listing the items online.

Before you start selling, make sure you do enough research to understand how much everything is worth.

7.  Reward Yourself When You Deserve It

A great way to lose weight is to reward yourself once a week with a “cheat day” or a “cheat meal.” This tactic helps those trying to get in shape take a mental break from strict regimens and gives them something to look forward to when they are struggling.

Climbing out of debt can be an emotionally taxing process, as well. To stay on course, it is important to treat yourself once in a while. If you slash your budget and stay committed to paying your bills, you should pat yourself on the back when you deserve it.

Get a nice bottle of wine. Go to a concert. Enjoy a spa day. As long as you don’t go overboard, these indulgences can keep you on track through difficult times.
8.  Allow Us to Help You Reach a Debt Settlement

At Liberty Debt Relief, we want to develop a unique debt relief plan that makes sense for you. Our debt relief services can help you reach a beneficial settlement with creditors, one that will lower your payments. To speak with one of our representatives and learn more about how to get out of debt faster, click here.

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