How A Third Party Can Help Reduce Your Debt

Debt Reduction

If you find yourself in a sea of debt, you might not be too optimistic about the future. If you learn about the options available, you can be optimistic about paying off your debt. One of the ways that you can use to reduce your debt is using third-party services like the Nationwide Debt Reduction Services.

The purpose of the third-party companies like Nationwide Debt Reduction Services is to negotiate the acceptable amount of payment that is less than what you owe to your creditors. The payments you are going to make are going to be on the third-party account. Once the amount is enough to pay off the negotiated amounts, Nationwide Debt Reduction Services covers it. There are various advantages that third-party debt settlement programs pose, although they also have some risks. Below are six ways in which a third-party service can help you:

Reduce your debt amount

You can reduce the amount of your debt through a third party settlement process like a credit counseling service which will ensure that you reduce your monthly payments, but not the principal amount. To manage a large debt, a different settlement company can help you to reduce it.

You tap into the industry experience of a company

If you accumulate some debt, you might not have the knowledge or experience of dealing with your credits. Working with Nationwide Debt Reduction Services can help you leverage their experience. When you tap into the resources of a debt settlement solutions, you will be advised on the amount each creditor will be able to settle for, even the terms the creditors can go for in different stages of the debt repayment. On the other hand, an average citizen will negotiate his debt but end up agreeing on a bad deal.

You will avoid paying fees

When you have a debt settlement company like Nationwide Debt Reduction Services by your side, you will not incur any fees before settling the debt, and this is prohibited by the Federal Trade Commission. It is stated that fees are only charged when the firm successfully negotiates the best terms that a customer is willing to settle for. Well established settlement companies always abide by the regulation by the FTC, and you won’t be liable for upfront fees. The fees paid are usually dependent on the results of the debt payment.

You will make one payment instead of paying several debts

There won’t be any need of making payments each month to your creditor, you will only have to pay one sum to a savings account. This will enable you to focus on a single payment on a monthly basis so that you avoid accruing payment fees because of late payments because the costs are overwhelming.

You will be helped to create a plan for debt reduction

You might have no clue on how to engage with your creditors; if you work with a successful debt settlement company, you will be given ideas on what to expect. Before agreeing to work with a third party, you will be advised of the following:

  • The offers each creditor will be offered by the company.
  • All conditions and fees for the services offered by the debt settlement company.
  • The duration that the settlement company will take to give creditors offers.
  • When the settlement company asks you to stop any payments to the creditors, you will be informed of the disadvantages of not paying penalties and interests and how your credit score will be affected.

They will help you to prevent bankruptcy

If it becomes tough to repay your debt, the only road that may seem open is filing for bankruptcy. Although there are disadvantages that are related to debt settlement, you should not jump into filing for bankruptcy because your credit score will be damaged.

Alternatives to seeking the services of debt settlement firms

Although debt settlement companies offer a way out of debt, there are also other alternatives that are at your disposal that we have mentioned like bankruptcy and negotiating the debt on your own. One other third-party service we have looked at is the credit counseling services. If you want to be in charge of your financial life, a credit counselor can help you plan on how you can pay-off your debt. The good thing about debt counseling companies is that they are non-profit companies. They help you to lower your monthly payments by stretching your debt payment period. You will work with a debt counselor to come up with a debt repayment plan.


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