Debt Relief Options

Debt relief involves the reorganization of debt in any shape or form so as to provide the indebted party with a measure of remedy, either fully or partially from the creditor or creditors. Debt relief can change the terms or amount of your debt giving you the opportunity to get a hold on your finances. Indicated below are the main purpose behind a debt relief.

Reasons to consider Debt Relief

• Reducing the outstanding principal amount, you owe to your creditors
• Lowering the interest rate on credit cards and other types of unsecured loans
• Extending the term of a loan to reduce monthly payments

Types of debt

• Secured Debt
• Unsecured Debt

Unsecured Debt

Unsecured debts are debts which lack any collateral securing the creditor, lender or financers funds. Example of unsecured debts include credit cards, medical bills & utility bills. When a lender makes a loan with no asset held as collateral, it does so only on the faith in your ability and promise to repay the loan. If you fall behind on your payments, they generally cannot claim your assets for the debt

While on a default on the loan they can’t claim your assets as repayment for your debt, the lender may take other actions to get you to pay what you owe such as

• Hiring a debt collector
• Wage garnishment
• Reporting of debt to credit bureaus affecting your credit score

Secured Debt

Secured debts are secured by an asset, such as a house or car. The asset serves as collateral for the debt (hence why it’s called a “secured” debt). Lenders place a lien on the asset, giving them the right to seize (e.g., repossess or foreclose)

We offer a debt relief program compromising of familiar debt relief strategies deigned to satisfy your unique situation

Below are the debt relief strategies that are employed

Debt Relief Options

The solutions we offer you have in relatively to your debt issues or disagreement with your creditors has been tested and proven to be financial efficient and effective. The members of our Debt relief and management department here at Bf solution group has ensured that all factors and facts of your individual situation are being taken into consideration before solutions are being offered. Bf Solutions group is highly equipped and knowledgeable to assist you through your financial issues. Here are 4 main solutions, we offer also guiding you through your decision making ensuring you are making the right choice regarding your unique situation

Minimum Payments

Minimum credit card payments allow you to pay the least amount possible, month-by-month. minimum payment is usually calculated as a percentage of your total debt plus any fees, such as interest, that have been added to your balance. Minimum card payments are considered good for the short-term debts, in the long run, they simply not advisable because On the surface, minimum card payments can seem like an affordable idea, but in the long term, minimum card payments are extremely costly. Minimum payments are needed to keep the debt current are small compared to the balances. Yet, as your balances reach the credit card limit your credit score declines. A lower credit score could result in the credit card company lowering your credit limit and/or raising the rate, making it harder to pay off the debt.

Can I Make Multiple Credit Card Payments in One Month?

One way to pay more than the minimum payment is to make multiple credit card payments in one month. After making the minimum payment on time, any additional payments will help decrease your balance even faster. And that can also reduce the interest charged over time.

How Can I Lower My Credit Card Minimum Payment?

There are a few ways to help lower your credit card minimum payment. You might try making fewer purchases with your card until your balance decreases. A lower balance could mean less interest charged, which can lead to lower minimum payments.

You could also try to make payments that are more than the minimum amount. Paying more than the minimum amount can help reduce your balance sooner and lead to lower payments over time.

These approaches can also lower your credit utilization ratio, which may help improve your credit score

Does my Monthly Minimums remain the same from Month to Month?

NO, monthly minimums change for month-to-month factors affecting the changes are.

Missing a Minimum Payment or Paying Less Than the Minimum Payment: paying less than the minimum amount required or missing of payment entirely, even by a day it is very common for you to be charged a late fee which will be added to what you owe that will be calculated to achieve the minimum payment.

Additionally, missed payments can also impact your credit score especially if you’re late by more than 30 days.

Paying More Than the Minimum Payment?

Paying more than the minimum payment can help you cover the interest charged while also decreasing the total balance on your card. Paying more than the minimum amount also helps limit the interest you’ll owe over time. And the less interest charged, the lower your minimum payments could be.

Paying Only the Minimum Payment?

pay the minimum amount and make fewer purchases with your card, you might be able to pay down the balance on the card. The minimum payment required may help keep your account in good standing. And you typically won’t face any late fees or penalties. But if you don’t pay your account balance in full every month, you will be charged interest.