The struggle of most Americans to survive during the pandemic led to more individuals sinking in personal and credit card debts. Your lender is probably on your neck for payments, and you cannot afford to repay your credit card loans due to the devastating effects of Covid-19.
You should hire experts in credit card debt relief to help you negotiate for different loan relief strategies available. Some debt relief options include having a payment plan, debt consolidation, lower interest rates, deferred payments, reduced monthly payments, late fees relief, and extension of payment due date.
Debt Relief Strategies
If you are deep in credit card debts, you can find a way to restore your financial freedom. You can find a debt strategy that works best for you. Credit card companies have numerous financial assistance and relief programs for customers with accumulated debts due to coronavirus. Your debt relief professional can find you a short-term or long-term financial relief program that fits your monthly budget without straining. Short-term debt-relief options run up to 12 months, while long-term payment plans will provide relief for up to 60 months.
The short-and-long-term relief programs differ with credit card lending institutions and the ability of your debt relief expert to negotiate for better terms.
With the help of the hired debt relief professional, you can analyze the programs and methods your creditor is offering and pick the one that suits you.
Let’s explore some of the options/strategies you have for your credit card debt relief for a peace of mind. The debt relief expert can check if the credit card company offers:
- Payment Plan
Lenders recommend that people with loans who have difficulties paying them due to the devastating coronavirus should contact their customer service departments as soon as possible for help. Talking to them is a wise step to financial freedom, even if you fear they might turn down your plea for a payment plan.
Debt relief professionals use their experience, skills, and knowledge of the credit card policies to negotiate a payment plan that fits your current financial situation resulting from coronavirus. For the negotiations to work, your debt relief counselors at https://www.freedomdebtrelief.com will need clarifications about:
- Credit scores
- Current income
- Household expenses
- Amounts they can comfortably pay monthly
With this information, the expert knows what to request on your behalf. Not communicating with your personal or credit card lenders is the worst mistake you can make because it can land you in the credit bureau as a bad creditor.
- Debt consolidation
If you have numerous credit card loans that are overwhelming you and increasing your stress levels, you can opt to consolidate them. Consolidating credit card debts is beneficial because it will lower your interest rates. But, you can find yourself with higher monthly installments and closed credit card accounts. If you don’t want to close some of your credit cards, ignore this strategy.
- Bankruptcy
You could declare bankruptcy after losing your business or work due to covid-19, and you get to the lowest financial point with no money. The process might be tricky because of chapters 7 and 13 bankruptcy laws. A debt relief professional will walk you through the qualifications of the two chapters and help you apply for the one you meet the requirements. If you file for chapter 7, you might lose your valuable assets, such as your car or house, and get clearance of your debt obligation. Chapter 13, on the other hand, will allow you to keep your property and repay your loan within 3 to 5 years.
- Reduced Monthly Payments
Most credit companies such as American Express, Chase, Discover, Apple Card, and Bank of America offer Covid-19-affected clients credit card loans and reasonable debt relief programs. You should also reach out to a professional to negotiate reasonably lower monthly payments for your credit card debt relief. For instance, if the initial agreement with your credit card issuer was to pay $200 in monthly installments, your debt relief expert can request a lower amount of $120, or whichever payments you can afford to pay. The repayment method is excellent if you don’t want to default your loans to credit bureaus.
- Lower Interest Rates
If your creditor offers lower interest rates for people hard hit by the coronavirus, you should grab that opportunity. The option might significantly lower the total amount you are to pay, simplifying the financial burden you have. You can qualify for lower interest rates if you are not a loan defaulter with low credit score ratings.
Interest rates are the profit the credit car company makes from the loan you take. They will consider lowering the rates if they are sure you will honor the agreement and repay the amount. For people with bad credit score ratings, there is no chance that the company might consider reducing the interest rates because of the risk.
- Deferred Payments
Most credit card issuers also allow clients with loans to skip payments for some months until they can afford to pay the set monthly installments. The option to get credit card debt relief applies to people suffering financially because of covid-19. With the negotiation skills of a qualified debt relief expert, you can defer payments for the number of months to be stable and continue with the repayments.
- Reduced Monthly Payments
For credit card debt relief, you can also request your lender to lower the monthly installments to an amount you can pay with ease. The strategy works well for people with a source of income or can raise the requested monthly payments. If you had a pay cut or your business revenue reduced dramatically because of covid-19, you can use your pay slip of financial reports to negotiate lower monthly payments.
- Late Fees Relief
When you fail to pay your monthly installments, your credit card debt lender imposes fees on your loan balance. Without proper communication from you, the amounts increase your loan amount tremendously, increasing your financial stress. If you are the shy type, you can seek help from experts in credit card debt relief to negotiate the removal of late fees. You should have a good reason for not paying your monthly installment and promise to continue making the payments. If it is covid-19 related, the credit card company might consider your request.
- Extension of Due Date
When you are under immense pressure to repay your loans and cannot afford to, you should consider asking for an extension of the payment due date. If your credit card debt is in two months and you can project a failure to pay, the professional managing your debts can ask the lender to push the day forward by adding months or weeks.
Call for Professional Debt Relief Services!
Are you having trouble repaying your credit card loan? Do not hesitate to reach out to Freedom Debt Relief with experts that will help you get credit card debt relief. They will negotiate an effective payment plan, lower interest rates, deferred payments, reduced monthly payments, late fees relief, and an extension of payment due date. The professionals will also recommend debt consolidation if you have many credit card debts or filing for bankruptcy if your finances hit rock bottom. To get more information about debt relief, debt strategies, and credit management, visit https://www.freedomdebtrelief.com.