There are many things that can cause you to get behind on your bills. Whether it is job loss, divorce, death of a spouse, or any number of other reasons, getting behind on your bills hurts your credit. IF you are getting farther and farther behind, it may be time to consider a debt relief program. Here are a few things that you may need to know while considering the option.
- Many people believe that they have to own a home to be considered for debt relief. Most Alabama debt relief programs do not offer you a loan. Since there is no loan on the table, you do not need collateral.
- Debt reduction/relief is not the same as AL debt consolidation. Debt reduction seeks to negotiate lower settlements on debt while consolidation seeks to lump all of your debt into one payment.
- Debt relief programs will not damage your credit any more than being behind on your bills. Since you will be paying all of your obligations off eventually, you will be able to rebuild your credit when done.
The main goal of Alabama debt relief is to avoid bankruptcy. You must have an income stream and you must be able to make the payments arranged through the program. If you meet these criteria, debt relief could be your best option to avoid bankruptcy court.