Debt relief services

Create new beginnings and overcome debt

Debt relief services

Create new beginnings and overcome debt

Free Debt Relief Consultation

Reports indicate the average American student leaves school with at least $35,000 of debt, a six percent increase from the previous year. It is easy to see why a lot of people are struggling with their finances. Some people differentiate debts by tagging them “bad debt” or “good debt,” as this is dependent on if it’s a debt that appreciates (education) or one that depreciates (car) over time. And the two largest types of debt faced by people in their mid-twenties and thirties is student loan and credit card debt.
However we choose to categorize them, being in debt can be a frustrating situation; you practically have little or no control over your finances. Quite frankly, we all do not make six figures which mean that having to pay debts is tough, but it is something you have to work on in order to help your financial standing. The ability to define your debt problem is one step to solving it. Depending on how much you owe in debts, paying it could take years or even decades. There is no easy way to becoming debt free, if you truly want to get rid of your debts, you have to be ready to sacrifice a lot and go through some temporary pain for the sake of your long term financial position.
Debt can impact many aspects of your wellbeing, so getting out of debt as soon as possible can help you take charge of your life and finances again. How do you get yourself out of debt? There are various strategies that can get you out of debt quickly, but you will need to consult a professional first and discuss your present financial and debt status so they can give you a personalized solution that suits your situation. What are the various types of debt?

Secured Vs Unsecured debt

There are two types of debt – secured and unsecured debt. To understand the concept behind secure debt, let us understand what collateral is. Collateral is something of value that is pledged as security in the repayment of a loan, should there be a default in repayment, the collateral is forfeited. This collateral is usually in the form of an asset like a house, vehicle, machinery and so on. When collateral is given during the process of a loan, the debt is secured. The guarantee of payment is in the collateral as an attempt to default in payment could mean the lender can sell your collateral to recoup his money.
Unsecured debt has no collateral. The only guarantee that the debt would be paid back is “word of mouth.” Failure to pay back means the lender can go to court to obtain judgment against you and subsequently ensure the court enforces this judgment. The risks involved for a lender when it comes to unsecured debts is usually high. Some examples of unsecured debts include student owns, lawyer fees, medical bills, student loans, utility payments and more.

Credit Card

A credit card debt is an unsecured debt incurred via revolving credit card loans. Most people who have credit card debts accumulate these debts by opening several card accounts with different limits and terms. These accounts are often reported and tracked by credit bureaus once a borrower starts to default in payment. When signing up for a credit card, part of the terms of service is that you are going to pay all the monies, inclusive of charges, fees, and interests accrued. Failure to pay can mean that your creditors can obtain a garnishee order to take your car, house or any asset of value without legal intervention. If you are going through a significant financial hardship and are finding it difficult to repay your creditors, it is better you seek professional advice on the best route to take in helping to settle your debts.

Student Loans

Over the last 11 years, students’ loans have experienced a cumulative growth of over 157%. According to NerdWallet, the US has about 44.5 million student loan borrowers with a total sum of $1.5 trillion as of March 2018. That is a huge sum. The interest rates of these loans are unprecedented, students are not only plagued with the increasing cost of tuition, but they also face a steadily rising cost of borrowing in other to afford that degree.In the consumer debt category, student loans take second place, just behind mortgage debts, and it is now higher than both auto loans and credit card debts combined. Getting rid of student loans is very difficult, even if you declare bankruptcy, you are still likely to have to pay your student loan, and unfortunately, you can’t wave a magic wand for all to disappear. You will find most students combine working with schooling in order to manage their finances. If you have a student loan that is choking you and are confused as to what to do next, it’s time to consult with a professional.

Back taxes

Back taxes are taxes owed from a previous year that wasn’t paid during that year. Simply put, if a taxpayer fails to pay taxes owed for a particular year, he is said to owe back taxes, and this could be intentional or unintentional. Sometimes it is because a return was filed and the tax liability wasn’t paid, a failure to report all earned income during the period, or the taxpayer failed to file a tax return, or any other reason. During this time, the IRS will send several notices to the taxpayer.

The thing with back taxes is that the total debt can grow significantly due to increased interest rates and penalties. This can quickly become a tough situation for many taxpayers who have no means of payment. Depending on your situation, the government can press charges, offer voluntary disclosure programs, or demand immediate payment from you. In some cases, failure to pay taxes can take one to prison.

Credit repair

Credit repair involves working with creditors and credit bureaus to fix and improve your credit report to increase your credit score. This process can be done by yourself or a credit repair company who works on your behalf. It includes having to critically examine a person’s debt and map out a payment or elimination plan. Correcting and improving your credit score takes time and effort, so you have to be ready to put in the work. Credit repair is good for those who want better credit options and competitive rates. If your credit score is very low, seek professional intervention and advice.

Why get professional help?

Seeking help when in debt is difficult, but living with it is more difficult. If you have sleepless nights over your debt, or you suddenly find yourself in a terrible financial situation and you are having difficulty keeping up with your debt payment, or the thoughts of being in debt affects your mental health, or you simply just need to talk to someone about the debts, then it’s time to seek professional help.

How it works

Many people aren’t sure what to expect when they speak to a professional. By requesting a free debt relief consultation, a professional will listen to you and provide a personalized solution that aligns with your situation. Financial and debt challenges can create a feeling of helplessness within you; it doesn’t have to be that way. Debtco is a debt solutions referral service, and we are focused on helping people get out of debt and take control of their finances. If you are ready to take action:1. Use our simple form to request a free evaluation
2. Debtco will connect you with an accredited credit counsellor
3. They will evaluate your unique situation and help to identify and review the best solutions for you.

Our solutions

How Debtco works

Tell us what you need
We get to know your situation. Then match you with the right solution for your needs.
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Debtco works with some of the biggest names in the business. Let their expertise guide you.
Create new beginnings
Enjoy a clear path out of debt with professional support
“It was very easy, because you just do the application on your iPhone. The next day the consultation was in contact about my student debt and now and I can finally see my financial stress reduced.”
Kristen Katakis
Austin, Texas

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Take the time to fill in our 5 minutes free consultation form and we will connect you with accredited partners.

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