What is Debt Relief?

Debt Relief Is The Ulitmate Debt Solution If You Qualify!
The Debt Industry, which feeds off of the credit and finance industry, has mushroomed into a multi billion dollar a year gigantic sized unregulated monster. The fact that it is so huge and there is no national or federal regulation, definitions vary depending upon whom you ask. When it comes to debt relief, there are currently no less than a dozen definitions. Each one comes with it’s own promises of debt relief and method(s) to get you there. Our mission in this session is to clarify what debt relief really is.      

I’d Like To Get Some Debt Relief Please
Actual debt relief dates back to the biblical days, when debtors, (by law) had all of their debts wiped out in one fail swoop. It was the perfect get out of debt plan! Of course, that type of debt relief would never happen in this day and age. In today’s economy, “debt relief” is a commonly used term in the debt industry that may mean any number of things depending on who you ask. One point no one argues or debates is the fact that debt relief is a means to get out of debt. Since everyone agrees on that last point, let’s examine how various parties define debt relief.

When Attorneys Say Debt Relief… They Actually Mean?
Mention the term, “Debt Relief” to an attorney, lawyer or judge and they will, in all probability, say that you are referring to filing bankruptcy. If you scan the advertisements by attorneys who perform bankruptcies as a staple of their practice, you’ll notice a high percentage of the ads use the term, “Debt Relief.” They always have and they always will, due in large part because bankruptcy actually provides debt relief.

When creditors are demanding payment or else and debt collectors are hounding a person; subjecting them to levied bank accounts, wage garnishment and foreclosure, obviously, they need relief. Bankruptcy provides the ultimate form of debt relief. It puts a halt to harassing debt collectors. It immediately and instantly stops all debt collection. It stops foreclosure. It stops wage garnishments. It stops account levies.

The Down Side of Bankruptcy as a Form of Debt Relief
As great as this form of debt relief is, it does come with some major drawbacks. Bankruptcy adds a serious red flag to your credit report. Generally speaking, when creditors see a bankruptcy on your credit report, some will be reluctant to extend you any credit. In addition, some employers check your financial background, if your career path has you in a field that requires you to handle or invest funds. With a bankruptcy on your credit report, you could hinder your employment chances in that field or career path.

By law, a bankruptcy can remain on your credit reports for up to ten years. That’s why we advise that bankruptcy, as a form of debt relief should only be used as a last resort. Remember, in advertising terms, debt relief is synonymous with bankruptcy. Many companies that advertise “debt relief” are planning to corral you straight into bankruptcy court.

Debt Relief From Non Profit Organizations
There are numerous agencies, ministries and organizations that provide funds to help people in need. These monies are a form of debt relief generally designated to assist in paying utilities, (i.e., electric, gas, water, phone, etc.) There are also organizations that provide funds to assist renters in paying rent and homeowners with their mortgages. An online search will net results in your particular area.

Student Loan Debt Relief
Unbeknownst to many students there are debt relief programs, better known as (LFPs) Loan forgiveness programs. This is true debt relief. In this case, the borrower's loans are paid off in Student Loan Debt exchange for volunteer work, public service or military service. You can contact US Department of Education for more information.  

Debt Relief; Call It What It Is People…
I said this previously, the debt industry has become so huge and the competition so stiff, that many parties involved use catchy terms to gain any advantage over their competitors. The term, “Debt Relief,” has a decided ring to it. The problem is, what a company or person is actually providing or selling may not be true debt relief.

One company that aggressively advertises debt relief, actually only provides debt consolidation loans. Which essentially is the shifting of debts from many places into one place. The debts still exist, so how does debt consolidation constitute debt relief?

Many companies advertise debt management as debt relief, but once again, debt management merely sets up a workable debt repayment plan. The debts, for the most part, still exist and must be paid. If the debtor fails to pay the debt management agreement as agreed, they are right back to square one. 

Joel Marks has been helping people get out of debt and avoid both bankruptcy and foreclosure for over fifteen years. Utilizing savvy debt counseling, debt management programs, Federal laws and a team of attorneys, debt counselors and advisors, he has quietly assisted thousands come from under the heavy burden debt.

Co-Author
William Phillips brings a degree in economics and an unwavering passion to help fellow Americans come from under the clutches of debt. He believes that with the right debt advice or debt counseling, anyone can recover from the stresses of being overwhelmed with credit card bills and other debts.

 Source: http://www.DebtErasure.com