How Do Debt Relief Programs Work

How Do Debt Relief Programs Work

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By Bromwich+Smith Staff | 395 words | Reading Time: 2 minutes | Date: 2022/04/14

Many of us can find ourselves in debt through job loss, reduced incomes, medical expenses, or the rising costs of raising a family. And when faced with a mountain of debt, it is quite easy to become overwhelmed and believe that you will never be able to pay off your creditors. Debt relief programs can offer a workable way out of these financial challenges. Helping you determine payments you can afford, while simultaneously reducing and eventually eliminating debt.

Whatever form it takes, the goal of debt-relief is to alleviate the anxiety that you can experience when dealing with overwhelming debt. Doing the right research and finding a suitable debt-relief program is a great first step toward regaining control of your finances.

Types of Debt Relief

Though the methods and timeframe for each one varies, it’s best to allow 3-5 years to erase your debt completely and rebuild your credit.

  1. Credit Counseling can provide you with the tools and knowledge you need to take control of your finances. Helping you build a secure financial future by better managing your debt and supporting you to stay out of unnecessary debt.
  2. A Debt Consolidation loan consolidates all of your creditors into a single loan. With this type of loan you are required to pay back 100% of your debt with interest. 
  3. A Consumer Proposal consolidates all your debts into one monthly payment, but unlike a consolidation loan, you pay back only the portion of your debt that you can afford. A consumer Proposal offers significant legal protection against creditor actions, which are immediately stopped upon filing.
  4. Bankruptcy eliminates debt and allows you a clean slate. If you do declare bankruptcy there will be no garnished wages, active lawsuits come to an end, and any frozen bank accounts are thawed.

It should be noted that not all debt-relief programs work for everyone.  Make sure you do your homework and work with a professional Licensed Insolvency Trustee or a Debt Relief Specialist to determine the best course of action for you.

If you are facing overwhelming debt, remember that you are not alone. Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, or request a call back at contact us page. 

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