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Memphis Associates Complaints Rise For Credit Card Relief

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Memphis Associates Credit Card Relief

Can You Trust Memphis Associates?

Memphis Associates credit card relief offers are bait and switch. Memphis Associates has begun flooding the market with debt consolidation and credit card relief offers in the mail with the website mymemphisassociates.com. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect. The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2020 Reviews, the personal finance review site, has been following Memphis Associates, Tate Advisors, Plymouth Associates, Neon Funding, Polk Partners, Ladder Advisors (also known as Carina Advisors, Corey Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc.).

Best 2020 Reviews closely monitors personal loan offers, debt reduction, and credit card consolidation offers sent through direct mail to consumers.

Memphis Associates Worst Credit Card Relief
Credit: Pathdoc

Is Memphis Associates The Wrong Choice For Credit Card Relief?

A growing number of Americans have been burdened with debt in 2020. These individuals should turn to one of the many debt relief options to make the repayment process easier for them. Such options are usually aimed at decreasing or getting rid of interest charges to halt the growth of debt.

There are various debt relief options for people in this situation. This includes:

  • Using balance transfer credit cards
  • Debt consolidation
  • Following a debt management program
  • Debt settlement
  • Taking out a home equity loan

Let’s look at each of these options to find the one that is right for you.

Using Balance Transfer For Credit Card Relief

Balance transfer credit cards are special credit cards offered with 0% APR for a temporary promotional period. This 0% rate is valid on balances transferred when you initially open your account.

Debtors can pay off their existing debt using these cards, and be freed from paying interest for the duration of the promotional period, which can last 18 to 24 months. This can buy them additional time to pay off their debt.

The drawback of this option is that these cards are offered only to people with good credit. If your credit score is poor, you may not be eligible for a balance transfer card. In addition to this, if you are unable to pay off your card balance before the promotional period ends, you will be charged interest on the remaining balance.

The interest rates on these cards can be very high once the promotional period is over, so you should choose this route only if you are confident you can pay off your balance in time.

Debt Consolidation For Credit Card Relief

Debt consolidation is a useful option for debtors who are struggling to pay off multiple high interest debts. This option involves taking out a large consolidation loan and using it to pay off your debts.

For this process to be effective, the consolidation loan should be offered with an APR that is lower than that of your existing debts. Debtors should look to different financial institutions as well as online lenders to find a loan that suits them. However, the terms of your loan may depend on your credit score.

Debtors with better credit scores will be offered a consolidation loan at a lower APR compared to debtors with poor credit scores. As a result, this option may not be for everybody.

One of the main benefits of debt consolidation is that it frees you from making payments on multiple debts each month. Once you’ve taken out the consolidation loan and used it to pay off your other debts, you will be responsible for making only one payment per month.

Following a Debt Management Program

Debt management programs are a suitable option for debtors with poor credit and low savings who are having trouble paying back what they owe. These programs are offered by a credit counseling agency, who offers to negotiate with your creditor for a manageable repayment plan.

Debtors will need to get in touch with a certified credit counselor to assess their available options. If the counselor determines that a debt management program is the best possible strategy, they will assist in enrolling them into the program.

Debtors will need to work alongside the counselor to create a manageable payment plan. The counselor will then contact the creditor and ask them to approve on the new payment plan. In some cases, the counselor may be able to get interest charges on the debt waived off.

Debt Settlement

Debt settlement is an option that should be avoided as it can damage your credit score. However, it may be useful as a last resort option for debtors with no way to pay back the full debt amount.

This strategy can be carried out by getting in touch with a debt settlement company and explaining your financial position to them. The company will then contact your creditor and attempt to negotiate a reduced debt amount on your behalf.

During this time, debtors will need to stop making payments to their creditor, and instead make regular payments into a special account under the supervision of a third party.

Once a sufficiently large amount has accrued in the account, the debt settlement company will offer it to your creditor. If negotiations are successful, your creditor will settle for an amount lower than your full debt.

This debt relief option comes with many drawbacks. In addition to damaging your credit score, you will have to pay taxes on the forgiven debt amount. The debt settlement company will also charge a fee, even if your debt isn’t completely settled.

Taking Out A Home Equity Loan

Another debt relief option that should generally be avoided is to take out a home equity loan. This loan can be used to pay off your existing debts and is usually offered at an interest rate that is lower than that of credit cards.

This option does damage your credit score temporarily, and debtors will need to make their payments on time if they want their score to recover. However, the greater risk associated with taking out a home equity loan is losing your home.

Failing to keep up with loan payments will result in your home being foreclosed, which can be incredibly distressing for debtors who are already in a difficult financial position.

Which Debt Relief Option Is Right For Me?

The aforementioned debt relief options should offer some assistance for debtors that are dealing with high levels of debt. However, not every option may be right for you.

Using a balance transfer credit card is a good option if you have a good credit score. You should also have a steady income you can use to pay off the balance before the promotional period ends.

Debt consolidation may be right for you if you have a high enough credit score to get a low-interest consolidation loan offers.

For debtors with poor credit, enrolling in a debt management program could be a good option. However, this option will further damage your credit score.

Debt settlement should be used as a last resort because it will damage your credit score, and add tax costs.

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