National Debt Relief (NDR) is a debt settlement firm, which negotiates with consumers on behalf of them to reduce their accumulated debt by as much as 60% after its initial fees. It normally takes quite a while to negotiate your debt. Getting any real benefit from debt relief requires sticking to a plan long enough to resolve all of your unsecured debt many times over. If you have taken out a debt consolidation loan, your debt management company will work out a debt consolidation agreement (DDA) for you and settle all of your debt with the debt consolidation lender. A debt management plan is an agreement which sets out how the debt settlement firm will carry out its debt settlement activities – it includes the debt settlement process as well as how it plans to collect the debt. Your debt management company will then distribute the debt settlement amount to all of your creditors at once.
This means you can settle your debt balances much faster this way. However, you will have to have a monthly debt consolidation payment which will be about 2% of your debt balances. The debt consolidation lender will take the monthly repayment amount it has agreed upon and spread it across all of your creditors. This means your monthly payments will fall below the level you would have paid each month if you had continued to make your payments as usual. Each creditor will also receive an equal monthly payment. You will usually need to make one monthly payment to the debt consolidation company and another to each of your creditors.
All debt settlement companies will advise you to make at least a minimum payment on your unsecured debt accounts every month. The minimum payments will be for a short period of time, usually a few months. Your minimum payments will not cover the full amount of your debt settlement. The debt settlement company will make regular payments to your creditors at this time, until your debt balances have been fully satisfied.
One of the other debt relief options available is to negotiate with your creditor. A specialist from a debt relief company will speak to your creditors on your behalf in order to help you eliminate or reduce the total amount of debt that you have. If you are unable to reach an agreement with your creditors on your own, many debt relief specialists will act as a counselor between you and your creditors. They may be able to reduce or even eliminate late fees, penalty fees and other charges that may have accumulated on your credit cards.
You may also want to consider debt relief counseling. Some debt consolidation programs will provide you with counseling, either before the debt consolidation or once you have closed your account. This counseling will help you learn how to better manage your finances and will give you advice about debt consolidation options that may be available to you. Your counselor can tell you about debt consolidation loans and how they will work to help you reduce the total amount of debt that you have.
You should not overlook credit card bills and other unsecured debt when you are trying to find debt relief options. You have the right to pursue any one debt relief option, as long as it does not infringe on the rights of others. Remember that if you are having financial problems, you are not alone; there are debt relief options out there for you. You just need to take advantage of them.