J. Petersen, Florida
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Did you know the GFM Debt Management Program could save you hundreds of dollars in interest each month?  |
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Help With Unsecured Debt
3 methods of debt management help for unsecured debts.
There are 3 main methods for dealing with unsecured debt like credit cards, medical bills or collection accounts. We have listed each with a brief description below for your convenience. Please note that secured debt such as home mortgage or auto loan must be handled differently. Visit our secured debt solutions page for more information.
Debt Management Programs
A debt management program (DMP) provides an efficient way to pay down your outstanding debt under the best terms available. You make one monthly payment to a credit counseling agency, such as GFM, and they will distribute the funds to your creditors. In return for making consistent on-time payments through a reputable debt management company, your creditors will provide many benefits including significantly reduced interest rates, eliminating costly late and over-the-limit fees, and even re-aging accounts to current status. Click here to learn more.
Debt Settlement Program
For those who cannot afford a debt management program, debt settlement may be the next best solution. The primary benefit of debt settlement is that you are negotiating with lenders to pay (in most cases) far less than you actually owe - which can lead to being debt-free in a shorter time frame than a debt management program. However, there are drawbacks. The impact on your credit is often significant, and "forgiven" debt can even be viewed as taxable income to you. While GFM does not offer debt settlement in-house, we can refer you to a reputable company who can offer this type of debt management help. To learn more about the differences between debt management and debt settlement, click here to learn more.
Bankruptcy
While filing bankruptcy is a legitimate way to get out of debt, it can also be invasive and expensive. Plus, it will stay on your credit report for up to 10 years. Before choosing bankruptcy, it is important to understand the different types of bankruptcy, the consequences, and the costs. Sometimes bankruptcy is the best option for debtors, but it is generally considered a last resort. It is a legal proceeding, and as such, you should seek the advice and counseling of a lawyer to determine if this is the right course of action for you. Click here to learn more.
Still have questions? Then call our compassionate and accredited GFM counselors at 1-866-467-1259 today or, if you are ready to enroll online, click here to get started!
