Debt Relief Agencies

Designed to help you save money on interest and get out of debt quicker, debt relief agencies are a godsend for anyone who finds his or herself on the brink of financial ruin. Working in unison with credit companies and other financial institutions, the goal of a debt relief agency is to consolidate all of your debts into one lump sum and put you back on a feasible monthly repayment plan with the lowest possible interest rates. To do so, debt relief agencies negotiate directly with your creditors on your behalf, ensuring them that you have entered a debt consolidation program and are committed to paying off your accumulated debt load. By renegotiating your monthly repayment plan and interest rates, debt relief agencies can reduce your monthly repayment fee by as much as 50% and can save you thousands of dollars in accumulated interest, not to mention getting you out of debt a lot faster than you would have been able to do otherwise. And with an estimated forty to sixty million Americans either considering or actually partaking in some form of debt consolidation program, debt consolidation has now become a big money-making business for private debt relief agencies. But if paying money to get out of debt doesn't sound too appealing, rest assured that there are numerous non-profit debt relief agencies to choose from as well.

Private Debt Relief Agencies

Like any private enterprise, private or 'for profit" debt relief agencies are unregulated businesses that do not receive any subsidies from the credit companies themselves. As such, all of their operating costs must be collected from their clients, which can often be reflected in the price of their monthly service charges. Consequently, the amount of money you are saving on interest from your accumulated debts may not be as much as you think once the monthly service charges are included.

Non-Profit Debt Relief Agencies

Because it makes much more business sense for a credit company to help their clients from having to file for bankruptcy than to insist on a monthly repayment plan that the debtor cannot possibly meet, most non-profit debt relief agencies are actually subsidized by major credit companies. As such, the credit company is willing to provide concessions and negotiate lower interest rates and monthly payment fees with non-profit agencies to ensure that they recuperate the debts owed to them.