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What is Debt Relief – An outline

Main Points

Debt relief is when a creditor relieves you from or cancels the money you owe.
The relief may be temporary and give you time to get back on track. Or it may be permanent and include forgiving part of your debt.
You may seek debt relief for credit card debt, medical debt, or student loans.
Freedom Debt Relief is the top debt relief company that helps you negotiate and settle your debts.

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If youre wondering what debt relief is, then theres a chance your struggling to pay your debts. Anyone can go through a tough phase. The most common reasons for financial hardship are usually medical expenses, job loss, or income loss.

If you are looking for more information on debt relief, you're in the right place. Freedom Debt Relief is familiar with the intricacies of debt relief and is the nation's leading debt settlement provider. We have helped over 650,000 customers resolve over $15 billion debt since 2002. From our experience, the reasons for financial hardship vary.

Debt relief refers to various strategies and initiatives aimed to solve your financial problems. Due to the variety of hardships and the uniqueness of your problem, you want to make sure that you find the kind of debt relief that is right for you.

Debt Relief Definition – A Summary

Debt relief is when a lender or creditor changes the terms of your debt to make it easier for you to regain control of your finances. Possible strategies include:

Postponing payments.
Interest rate reduction.
Canceling or forgiving part or the full amount of your debt.

Learn more about debt relief

DebtQuote understands that debt relief only works if you find the right program for your financial situation. We want to make sure you know how debt relief works, the different programs, and the kind of debts that can be settled.

What is debt relief?

1
Temporary relief through forbearance or deferment: The creditors postpone your payments or let you make partial payments for a short period.
2
Lender or credit card company hardship programs: Your company might offer a “hardship program”, which is a temporary relief program like forbearance or deferment.
3
Debt modification programs: The lender restructures your debt by lowering your interest rate or adding more years to your term. You get immediate relief when your monthly payment drops. Debt management plans fall into this category. There are also student loan and mortgage loan modification programs.
4
Debt forgiveness programs: The creditor reduces the amount of money owed. There are two forms of debt forgiveness: debt settlement (or debt negotiation) and bankruptcy.