Is There Such a Thing as Debt Relief?

If you are in debt then finding ways to relieve yourself of the burden you are carrying is understandable. You may have heard of the term “debt relief” and wonder if there is such a thing. Is there? Let us look at that now. 

Defining Debt Relief

When asked the question- is there such a thing as debt relief? - you will receive mixed reactions. Some people will tell you yes there is, while others will scratch their heads and tell you that they are not sure if such a thing exists. Debt relief is a somewhat ambiguous term that refers to refinancing or rescheduling debt and to services and reduction of debt. To put it another way, debt relief is defined as, “the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations or nations.”

In reality debt relief is not something most individuals are able to profit from as most debts while they may be reduced in some instances are rarely forgiven. In the case of filing for bankruptcies some debts are written off while others still must be paid after the period of time for the bankruptcy is over. Some creditors are more understanding to their debtors than others. Some will offer debtors the opportunity to pay a portion of the total bill owing and then will forgive the remainder while others will find a way to make monthly payments more manageable for the individual in question.

Credit Counselling/ Debt Consolidation Services

It is always a good idea to look into credit counselling or debt consolidation services if you fear that your debt problems are getting out of control. Never be afraid to let your creditors know that your financial situation has changed (such as if you lose your job) and that you must look at ways to reduce your debt load.

Debt relief is sometimes an option for corporations that have run into financial problems and it has been awarded to poor countries by the government when it is obvious that the citizens of the country are suffering under the tremendous debts that the country owes the government or other more advantaged countries. One example of this that is often discussed is the Third World debt, which began being heavily discussed due to the Latin American debt crisis.

If debt relief is an option for you then it is worth considering but make sure you clearly understand the terms of the arrangement. Make sure that there is no way that the forgiven debt could ever come back to haunt you in the future. Be aware that even if a debt is forgiven or partially forgiven it will still affect your credit rating and credit history for years to come.  

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