Multiple debt relief programs are available to help you out of a financial hole. If a medical emergency drained your savings or you entered debt by making impulsive choices – you are not alone. Consumer debt reached nearly $16 trillion by the first quarter of 2022 and many people are looking for relief from financial hardship.
Available debt relief options include credit card consolidation, personal loans, IRS payment plans and bankruptcy. Your ability to engage in these programs depends a lot on your credit rating and debt-to-income percentages. Read ahead to learn more about available debt relief options in 2022.
Experiencing high debt and financial hardship often makes you feel alone and overwhelmed by your problems, but you are not alone. Consumer debt climbed by nearly $52.4 billion dollars between March 2021 and 2022.
People across the entire U.S. have high debt due to unexpected medical bills and unemployment, but numerous debt relief companies have programs designed to help.
Debt management involves intelligent financial choices, which adhere to a disciplined budget and plan for financial longevity. Debt relief loans and debt settlement programs provide options to pay off your debts at reduced prices or in affordable monthly installments. It is also possible to consolidate your debt into one lower monthly payment over an extended loan term.
Do you owe back taxes and cannot afford to pay them off? The U.S. Internal Revenue Service (IRS) offers payment plans and occasionally partial forgiveness to qualified taxpayers experiencing exceptional financial hardship. Filing bankruptcy is another option for debt relief. Bankruptcy is often used only when all other attempts at paying your debts have failed.
Most debt problems occur due to unhealthy or impulsive financial choices. Such choices predominantly include spending in excess of what you earn and purchasing items without first consulting your budget. When expenses from serious medical emergencies or illnesses are not covered by health insurance policies, people become stuck with high medical bills.
Occasionally the best debt relief program is one people implement themselves by using the following process and tips:
- Assess your income and expenses.
- Separate must-haves from wants.
- Create and stick to a budget.
- Prioritize paying down one debt at a time (make minimum payments on all but one debt).
- Hire a debt counselor, apply for a loan relief program or file for bankruptcy if DIY methods fail.
Student loans are often necessary to get the education you need but can quickly become unaffordable if the job market is weaker than anticipated after graduation. Obtaining relief from high debt regardless of its cause is a priority for many Americans today.