The options for debt relief include transferring card balances to a new card, signing up for a debt management plan and applying for a consolidation loan, according to Bankrate. A debtor can also enter into a debt settlement contract with the creditor to relieve the debt.
According to financial magazine Forbes, the United States of America has the largest burden of debt in the world, which only continues to increase. As of September 2014, the fiscal deficit of the United States exceeded $1 trillion.
Many credit counseling services offer free materials and workshops relating to debt and debt relief, explains the Federal Trade Commission. Additional free options include seeking help with the U.S. Cooperative Extension Service, speaking directly to creditors and working out a modified payment plan
National Debt Relief is one of the nation's largest debt settlement companies. The organization offers a variety of debt relief services to consumers through settlement and negotiation, states the Better Business Bureau.
The public debt is the total amount of money that is owed by the government. The value changes on a daily basis, and it builds up or reduces in time. It builds up as a result of running the economy.
Federal debt is the money that the federal government owes to creditors, such as other governments and businesses. The government uses borrowed funds to supplement deficit budgets and finance expenditures. Federal debt has three main categories: floating debt, funded debt and unfunded debt.
As of December of 2014, the United States owes more than $18 trillion. This debt includes both debt held by the public and intragovernmental holdings.
To collect debt, the Fair Debt Collection Practices Act stipulates that people may contact others via phone and mail or sue in civil court for debts, according to the Federal Trade Commission. Debts incurred to run a business are not covered by the Fair Debt Collection Practices Act.
To reduce debt, consider all obligations, construct a budget and initiate payments accordingly. These steps help reduce debt and the associated interest expenses.
Debt factoring is a financial arrangement by which a business sells its invoices to a third party at a discount. Businesses use debt factoring to improve their cashflow.