This is a college essay by a student who’s applying for the Golden Financial Services scholarship. To apply for the scholarship, this student needed to invent a new credit card relief program. Click the “thumbs up” button on this post if you believe this is the winner.
Staying Debt-Free in 2019 Via A Personalized Debt-Relief Program
Has the past year taken its toll on you debt-wise? Even though you may feel unfortunate and clueless on how you should tackle this, know that you are not alone in your struggle–As a matter of fact, based on official stats, total credit card debt from U.S citizens surpasses $1 trillion dollars (as of early 2018).
The question is: Why this happens and what can we do about it? Unfortunately, even economists don’t agree on why there is such a huge spike in interest rates as each has their own theories and opinions on the matter. However, the Federal Reserve supports that this is the natural result of a “healthy economy”–an economy though that leaves millions of U.S citizens unable to pay their min. payments per month.
This is the reason why people are now resorting to debt consolidation and debt relief programs. And by debt consolidation here, we mean programs that combine different loans in your name into one single payment. These programs are usually offered by a third-party credit or financial counseling company or entity–you simply submit a single payment to the agency and they send these payments at once to your creditors. The aim of this program, of course, is to help you eventually get out of debt within 24-48 months.
What happens once you choose a new debt consolidation program?
If you choose to work with an agency for a debt consolidation program, the first step would be to schedule a counseling session with the agency that you have chosen–an agent will discuss with you all the specifics of your debt case and offer you a unique debt consolidation plan based on your needs. Fees and other important details of this service will also be discussed with you.
What are the key benefits of a debt consolidation program, compared to the rest?
Since there are many debt control programs out there and each has their own strengths and drawbacks, it is important to choose a new program that caters to your needs, with minimal fees and obligations on your part. Some programs, for example, have no income-based repayment facilities, some take over three years to be covered, and others may negatively affect your credit score, despite their bold claims and promises.
Here are some benefits of personalized debt management and consolidation program.
- One single payment every month. To ease the stress of having to tackle multiple and separate bills every time, the program will consolidate your debt into one single payment every month, which will get allocated to your creditors via the debt management agency. Unlike other programs out there, this debt consolidation program lets you pay your dues all at once, without exposing you to further financial risk and struggle.
- Decreased payoff time. Once the creditors accept the terms of the debt control program, interest rates will fall. That implies that fewer of your monthly payments will be sent to cover interest rates and more will be sent to repay your main balances, which also decreases the time it will take you to cover the debt.
- Better interest rates. By initiating debt management and consolidation program, you demonstrate to your creditors to pay off all your debts. This is seen by most as a good sign and they will respond more favorably by offering you special credit facilities e.g decreased interest rates. However, as different creditors provide different facilities, it will be wise to discuss them with the creditor you are working with.
- Better credit score. Even though there is not a single and exact influence of a debt management program on credit score as each case differs from another, there is a small but significant impact in most cases. This is because, a personalized debt consolidation program will allow you to pay off your dues without the need to initiate new credit lines, which may ultimately lead to a better credit score.
- Steady support. Throughout the course of your program, helpful credit counselors will be at your disposals anytime to offer you personalized advice and support to get you on the right track while answering any relevant concerns and questions you may have regarding the program.
- A Great alternative option to Bankruptcy. Bankruptcy is considered as the last resort for people who cannot pay off their debts in any other way. However, this is incredibly damaging to the reputation of the individual, isn’t allowed by many employers and leads to raised interest rates for the next 10 years of bankruptcy showing up in credit statements. Ultimately, this is a matter that you may discuss with your legal advisor and the debt management agency, to find out whether it is a viable option or you need to try another program first.
Clearly enough, an efficient debt management program will ultimately help you to pay off all your debts at a time and interest rates that are convenient for you and your case–and this is what our program promises to do.
About the author:
I have always been interested in the concept, design, and operation of aircraft. Growing up, I remember the thunderous sound as aircraft took off and landed on the runway close to my home. Watching these aircraft’s as a kid, developed a deep desire to understand the concepts on how they operated. My love for aircraft took me on a path to join Ethiopian aviation academy after finishing my high school studies. I attended the aviation academy for 2 years and was able to receive a license as an airframe and power-plant mechanic. This opportunity gave me a lot of hands-on experience as well as the motivation to pursue a higher education to pursue my bachelor’s degree of study.
Currently, I am pursuing my studies in mechanical engineering as it is one of the broadest engineering disciplines. I participate in different organizations on campus I believe this will help me gain the foundation in been active participant in my community as well as future work environment. The vice president of events for National Society of Colligate Scholars (NSCS) and was able to direct different projects. This past year my team and I took on the challenge of addressing issues related to climate change and our environment on campus.
In later years, I plan on continuing my education by pursuing a Master’s degree in the field of alternative energy research or system engineering. I plan to travel back to my home country and teach in the higher institution, in the area of engineering. Back in my home country, there is an enormous demand for experts and Teachers. I want to share my knowledge and experience with future engineers and help them achieve their goals.
Currently, in the United States, there are new debt relief programs in certain states, like in Arizona, but we are always looking for new and innovative ways to improve debt relief options.