There are six main strategies
to debt relief
Every situation is different and often time it is not simple to determine the best path for your future. Advocate Debt Relief analysts will work with you to help identify the path that best aligns with your financial goals, today and in the future. We believe that everyone deserves a win!
Debt Settlement (Our Top Choice)
Working with a company, you make monthly deposits into your escrow account. The company negotiates with your creditors to accept less than the debt owed. That amount is then paid to creditors, from your escrow account, until the debt is resolved.
Significant savings over making minimum payments
One low monthly program deposit
Debt is paid off fast
No interest is paid
Pay less than what is owed
Temporary impact to FICO
Results vary by creditor
A counselor reviews your financial situation, sets up lower interest rates with your creditors if possible, and creates a debt management plan for you to follow.
One monthly payment
Lower interest and fees
Better than minimum payments
Lenders may view you as credit risk
Principal debt not reduced
You are still paying interest
You take out a new unsecured high interest loan to pay off your debt. You make fixed monthly payments on the loan until it is paid off.
One predictable monthly payment
Set term for payback
No credit impact
Need good credit
No reduction on principal
Risk debt accumulating
A legal process. All your assets are evaluated and used to pay off your debts. Chapter 7 and Chapter 13 are most common options used by individuals. Once bankruptcy is complete, you are relieved of the debt obligations you had before filing bankruptcy.
Debt obligation could be cleared (Chapter 7)
Creditors are barred from attempting to collect on debts
Process takes only 3-6 months
Significant, long-term damage to credit
Loss of control of finances
Chapter 7 difficult to qualify for
Cash Out Refinance
Requires you to work with a mortgage lender. You refinance your mortgage, taking out additional cash beyond the mortgage balance. You use that money to pay your debts.
High interest debts paid off
Reduced monthly payments
Tax-deductible interest payments
Need equity in your home
Increased foreclosure risk
Unsecured debt is now secured
Do It Yourself
Using various online and offline tools, you determine the exact payments required for each debt and track your progress as you go.
You’re In Control
No required costs
No credit impact
Requires strict budgeting
Hight Interest Rates