The Advantages Of Using Debt Relief Services To Improve Your Finances

Posted on: 27 July 2022

When you find yourself in serious debt to a variety of collectors, you may have difficulty paying off your accounts with them. You also may not have enough money coming in from your job to make payments to all of them each month.

Even so, your inability to pay these debts can put your bank account, income, and other assets at risk. You can protect them and improve your finances by using debt relief services to settle your accounts with creditors.

Preventing Garnishment

Depending on the creditor that you owe, you could have your paychecks garnished to settle your account with it. The creditor can ask the court to issue a garnishment order and have a portion of each paycheck automatically withheld for it. It may take you weeks or months to pay off the debt through garnishment.

Even more, during the time the creditor garnishes your paycheck, you are left without money you may need on which to live. You could incur even more financial hardships that put you in debt because of it. 

Instead of risking a garnishment, you can use debt relief services to pay off this creditor. The debt relief services can notify the creditor of your enrollment in a payment program, which may be sufficient in getting the creditor to avoid or release a garnishment of your paychecks.

Affordable Payments

Further, the counselor from the debt relief services in charge of your case can determine what amount of money you can afford to pay each month toward your debts. This amount of money may be less than all of the minimum balances owed each month. You may find this amount easier to pay in a lump sum than if you were to make minimum payments on each account separately. 

Even more, the lump sum you pay to the debt relief services will be broken up into increments and sent to each creditor on your behalf. These increments will be applied to the balances of your accounts until each one is paid in full. 

Peace of Mind

Finally, debt relief services can give you back your peace of mind. You may no longer be afraid to answer your phone or get the mail. You can get back to your normal life without the worry of your wages being garnished or your assets being frozen or seized.

Debt relief services can stop garnishments and offer a more affordable way to pay off debts. They can also give you back your peace of mind.