The Elimination Of Debt, Free Programs

For ease of understanding, most debt free programs fall into one of three large categories: consolidation loans, credit counseling, and bankruptcy. All of these services are available for little or no cost. Legal representation in bankruptcy cases (free - pro bono) is frequently provided by legal aid societies and county or city bar associations. Whether any these three debt free programs are right for deserves careful consideration. Also be aware, that all individuals may represent themselves when negotiating, settling, or even contesting liabilities in court.

Consolidation loans and debt free program applications

The most popular and frequently, the most effective debt free programs recommend consolidation loans and plans. In essence, by using collateral equity or existing credit, many small high-interest loans (credit cards and consumer financing) may be rolled into one larger note at substantially lower interest rates. The potential savings can be startling. Additionally, most consolidation loans require a definite repayment term. When applying for debt free programs, application fees should not be required. Any consolidation lender that charges fees in advance of approval should be considered highly suspect.

Consider debt free programs offering credit counseling

Credit counseling is the second most popular alternative for debt free programs today. These programs are based upon the premise that, through better financial management, existing notes, credit cards and liabilities may be repaid. Credit counseling begins with budget analysis, and identifying each persons cash trail. Thereafter, counselors almost always recommend cutting personal living expenses, paying more than minimum payments, and saving at least a small portion of income received each month. These recommendations may or may not be realistic. For approximately 1 in 70 households today, bankruptcy offers the only effective means of financial recovery.

Qualifying with poor credit or low income

Consolidation lenders, credit counseling services, and pro bono programs all expect applicants to present poor credit scores supported by low or no income. Many programs rely upon income, or lack thereof, as a condition of offering free services. Families containing young children tend to receive an unstated priority, as if the best interest of children is considered primarily important. Thereafter, families seem to be preferred over single individuals. In all cases however, approval is based on a case by case review for compliance with a wide assortment of policy requirements established by non-profit and/or charitable organizations.