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When Should You Enroll in a Debt Relief Program?

Are you currently struggling to manage your outstanding debt, but recent events have made you question whether it’s the right time to do something about it? If so, you’re not alone.

During times of economic uncertainty, it’s only natural to feel hesitant about making a new financial commitment.  We know that the world during the COVID-19 pandemic has been anything but ordinary, but don’t let that discourage you from moving forward with your intended goals, especially your financial ones. 

If you’re on the fence about enrolling in a debt relief program, we’re here to help you decide whether it makes sense for your current financial situation.

Enrolling in a debt relief program now may be right for you if:

You are feeling overwhelmed by high balances of unpaid debt.

If you’ve accrued more than $10,000 in unsecured debts—think credit cards, medical bills, and personal loans—and you’re unsure how you will ever pay it all back, now may be the right time to enroll. When you’re faced with large amounts of debt, it’s easy to feel overwhelmed and anxious. One of the greatest benefits of debt relief programs is knowing that you no longer have to manage your debt alone. Instead, you’ll have an opportunity to work directly with a team of debt specialists who can help guide and support you throughout your debt-free journey. 

After all, one of the biggest reasons why debt causes us so much worry is that it often makes us feel like we’re not in control. When you decide to enroll in a debt relief program, you’re taking the first step toward getting a handle on your finances

You have a difficult time affording your current monthly payments.

If you’re juggling multiple outstanding accounts and finding it challenging to keep up with minimum monthly payments, debt relief programs can work to reduce this stress by consolidating your ongoing payments into one affordable monthly program payment. Instead of making multiple minimum payments on a rotating basis, you can instead shift your focus into one combined payment—and start making a noticeable dent in your overall debt balance.   

You’re trying to avoid bankruptcy.

If you have a significant amount of debt but want to avoid the drastic route of declaring bankruptcy, a debt relief program is the viable alternative.  Filing for bankruptcy is a complex legal process that requires you to part with your assets and will negatively impact your ability to get approved for financing in the future. For most, filing for bankruptcy is a last resort. A debt relief company, like ACCS, works with your creditors to settle your original balances for less easing the burden of owing the entire amount back and helping you to avoid bankruptcy. 

Waiting to enroll in a debt relief program may be right for you when:

You’re about to finance a large purchase.

If you need to apply for, say, a mortgage or auto loan in the next few months, enrolling in a debt relief program could negatively impact your credit rating, making it harder to get approved for financing.  A debt relief program can help you settle your debt for less than you owe, but it also requires you to stop making payments directly to your creditors. While temporarily reducing your credit score, this step in the debt relief program process is necessary as it allows your debt specialists to prove financial hardship to your creditors and settle your debt for less.

You’re more than 60 days behind on your monthly payments.

If you have fallen behind and are unable to make any of your minimum monthly debt payments, you most likely won’t be able to afford a debt relief program payment. While you will gain significant savings on your debt owed, the program doesn’t work unless you can commit to making a monthly payment towards your debt.  

While we can’t predict what the future may bring, we do know this—the sooner you can start your journey towards becoming debt free, the sooner you will reach financial freedom.

Still have questions regarding debt relief and if you should take the steps to enroll now? Request a Custom Debt Relief Plan today to explore your options at no cost or obligation to enroll.  

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