What Are the Different Types of Online Debt Relief?

There are a variety of online debt relief solutions of which a person can take advantage. They include information found on self-help websites as well as debt counseling services, which may include an evaluation of one's debts and personalized advice. A person may also take advantage of debt consolidation loan offers or work with companies that help debtors negotiate payment settlements.

One type of online debt relief is self-help in nature. For example, a person my find online debt relief in the form of websites and blogs on which he can read about getting-out-of-debt topics. Such resources may provide information about a wide range of debt issues as well as suggestions for dealing with them. Some may include information about preventing debt problems as well. Additionally, such websites may also provide links and phone numbers a person can use to get help with financial problems.

Another type of online debt relief is debt counseling. Through debt counseling offers, a person can obtain advice for dealing with debt from people who are trained to help with these issues. This type of help may also include an evaluation of the debtor's unique situation, and in some cases, assistance with making suitable payment arrangements with his creditors. This counseling may take place using Internet technology, but sometimes, the debtor may receive initial information from a company online but then have to call or visit the company in person for counseling.

Sometimes debtors need more than just advice and information when they search for online debt relief. In some cases, they need money to help them get out of debt. For example, a debtor may take advantage of a debt consolidation loan, which serves to pay off his debt and consolidate his bills into one monthly payment. In many cases, this can result in a more attractive interest rate for the debtor and make it easier for him to keep track of his payments, as he will most like have just one rather than several after consolidation.

On the other hand, debt consolidation loans don't actually reduce the amount of debt a person has. Instead, the person gets one loan to pay off all of his debts and then has to repay that loan amount, often over a lengthier repayment term. Depending on how long a person takes to repay his loan, he may actually pay more total interest than if he had kept his bills separate.

Debt settlement help is another type of online debt relief. With this type of bill help, a company attempts to negotiate a settlement for the debtor. The debtor usually pays a percentage of what he owes when a company accepts a settlement. Companies are often willing to accept reasonable settlement offers because getting some money is viewed as better than waiting for payments that may not ever arrive.