Finding the ideal debt relief strategy that would enable you to escape debt can be challenging. EmpireOne Credit’s debt experts can assist you in choosing the most secure and effective debt relief option to address your debt issues and pay off your debt. In this post, we’ll talk about debt relief and how to avoid credit repair scams by learning how to spot them.

What Exactly Is Debt Relief?

Various methods for making debt easier to manage are referred to as “debt relief.” Depending on the kinds of debt you have and what you need help with, debt relief may take different forms for different people.

For instance, if you have a variety of debts to settle, debt consolidation may be of interest to you. Debt relief also includes credit counselling, debt settlement, consumer proposals, and bankruptcy. Assisting people in finding a practical route to debt elimination is the goal of debt relief.

Before we dive into the different debt relief options available, let’s take a look at how you can spot credit repair scams.

Spotting Credit Repair Scams

1.  Asking for “Upfront” Payment. Many credit repair businesses violate the law by demanding advance payment, which is against the law. However, many assume they will get away with it because there aren’t any consistent consumer protection laws across the nation. In order to steal your money, they have also become savvier over time. Beware of this strategy.
2. High-Pressure Sales Techniques. Someone who genuinely cares about you would listen to your situation and give assistance rather than forcefully pressuring you to follow a strategy that you’re not fully comfortable with. Why do scammers use this tactic so frequently, then? They’re taking advantage of your desperation, and they are aware that stressful “act now!” situations make it hard for you to reason well. A trustworthy business will give you the time you require to ensure that you’re selecting the best option for you.
3. Even if the negative information is true, they claim they can have it removed from your credit report. This is impossible for anyone to accomplish. The bad record will remain for several years if it is accurate. Nobody is able to remove it. Try to avoid falling for that.
4. It’s difficult to understand their contract. You don’t know the price you’re paying, the services that will be rendered for you, the length of time required to complete the services, or if you can cancel the contract.

Debt Relief Options

There isn’t a one-size-fits-all approach to debt solution or reduction. Based on how much you owe and the type of interest rates you’re paying, there are many approaches you might take.

Debt Consolidation

If you have numerous loans or lines of credit to pay back, you can decide to consolidate your debt. Debt consolidation is the process of combining multiple debts into one. For instance, you could use a personal loan to consolidate your credit card debt. With debt consolidation, you will be making monthly payments into one account.

Credit Counselling

In credit counselling, you will meet with a credit counsellor to talk about your spending, debt, and financial situation. A credit counsellor may help you assess your spending and debts and then work with you to develop a unique plan for handling both.

If you simply need assistance in formulating a feasible debt repayment plan, speaking with a credit counsellor at EmpireOne Credit Solutions is a great idea. A credit counsellor can also assist you in learning about fundamental financial concepts that may have contributed to your overwhelming debt.

Debt Settlement

Debt settlement  enables you to settle debts for a lower amount than what is owed. Any outstanding balance is erased if your creditor consents to a debt settlement. If you have the funds to pay your creditors and feel at ease negotiating with them one-on-one, you can handle the debt settlement process on your own. Your remaining debt will be forgiven if you make a single lump sum payment.

Consumer Proposal and Bankruptcy

In Canada, there are two options for government debt relief: bankruptcy and consumer proposal. A consumer proposal is a legal process that consolidates all unsecured debt into one low monthly payment and stops all interest. Paying back only a portion of your debt, gives you financial freedom to move forward to being debt free. 

A couple of advantages of filing a consumer proposal is that all wage garnishments, legal activities, and collection calls would end right away. Your assets are yours to retain as well. Bankruptcy, on the other hand, will wipe off your debts while you forfeit your non-exempt assets. Not sure on what option is best, consult a debt expert that can help go over a budget and see what is best for you in your current situation.

Conclusion

Now that you are aware of the top debt relief options available to you, how do you pick the best one? It’s important to keep in mind that nobody has the right to judge you for getting into debt, so you should not be quiet about your financial struggles. EmpireOne Credit has qualified professionals available to help you choose the best debt relief and walk you through it without judging you. We offer a friendly consultation that is free of charge. Call us right away to schedule a free consultation.