Debt Relief Solutions
It can be easy to feel overwhelmed when you are drowning in debt. It can be difficult to find a way out of the seemingly never ending cycle. There are many debt relief options available, but none may feel like the right solution for you. And, even with debt relief, you can find yourself back in the same place with a pile of debt rather quickly if you don’t build good financial habits and plan ways to keep yourself debt-free.
At Alto Financial Group, we can help you evaluate your financial situation to get a clear idea of your current finances, including sources of income, expenses, and various debts. We will then help you set a budget you can live with. We will also help you come up with a plan to manage your finances and ensure a successful debt-free life through our relationship with, Mpowering America.
We will help you navigate through debt management programs, debt consolidation, credit counseling, debt relief solutions, and more.
Debt consolidation is the process of rolling all of your existing debts into one loan with a reputable bank or mortgage company. You’re not totally debt free—but all of your debt is consolidated into one loan. This will typically lower your overall monthly payment and will help you focus on repaying the balance owed (principal). This process will eliminate collection calls and may reduce your interest rates. However, it could end up costing you more over time.
Debt assumption is when your financial obligation (debt) is transferred from one party to another. Again, it’s not going to get you debt free, but it can be a tool you can use to eliminate debt faster. When you do a debt assumption you pay off—and thus end— the original debt responsibility by shifting the payment commitment to a new debtor under a fresh contract with the same lender. The benefit of debt assumption is that it offsets your debt, helps protect against lawsuits, and restores your credit without the possibility of tax liability. As with any debt relief program, there are guidelines that must be followed, so not everyone will qualify for Debt Assumption.
Debt Validation is when you follow a process that requires the collection agency to prove the debt is valid and that they are legally attempting to collect it. It is not uncommon for collection agencies to not be able to prove a debt is valid after it gets disputed with a debt validation claim. There have been instances when even debts that have a large balance can easily get invalidated. With Debt Validation, credit restoration usually begins as soon as you enroll your unsecured debt accounts. It can be a long process and the payments can be reduced based on how many accounts are enrolled.
Debt settlement is when you negotiate a fixed payment amount (less than the balance you owe) and work out terms to pay the reduced amount. This is an option that many people use to ease their debt burden. We recommend using a settlement process that is backed or operated under the guidance and support of an attorney. The overall idea is that each debt is negotiated or “settled” with your permission and the money you have been saving is used to pay off the agreed to debt balance—requires you set up a savings account in advance.
Take Control of Your Finances
One of the key factors to financial freedom is eliminating debt. If you are one of the millions of Americans swimming debt with no shore in sight, Alto Financial Group is here to help you get on your path to becoming debt free. Our relationship with MPowering America has allowed us to address the financial challenges so many households are facing. In their 14 years in business, MPowering experts have helped thousands of customers cancel millions of dollars in debt and interest.
The information contained herein is for informational purposes only and should not be considered investment or tax advice. For a personalized evaluation, please speak with your licensed agent or registered representative.