One article explains clearly: Strategies and steps to get rid of debt difficulties by using debt restructuring

The loan repayment period is coming soon, what should I do if I don’t have time to repay? What should I do if high consumption leads to numerous loan projects? What should I do if I have fallen into the predicament of over-consumption? You can try this method! Debt restructuring can help alleviate the financial situation of debt owners who are in high debt due to long-term debt accumulation, delay the loan period, reduce the repayment pressure, and allow you to solve the debt problem more efficiently and timely.

Threshold requirements for debt restructuring

Debt restructuring also has a threshold and needs to meet certain conditions, as follows:

1Minimum requirements: The debtor is usually required to have a debt of at least $5,000; at least multiple high-interest debts (such as credit card debts).

2Income requirements: A stable source of income is required to repay as planned.

Successful cases of debt restructuring

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Ryan is a 30-year-old ordinary employee living in Los Angeles, USA. Recently, he fell into a serious debt crisis due to over-consumption and failure to plan his finances properly. Ryan's debt mainly comes from several credit cards and several personal loans, with a total amount of nearly $20,000. Moreover, due to long-term failure to repay on time, his credit score has dropped to 550, making it difficult for him to obtain new loans from banks.

He contacted the American Consumer Credit Counseling Association (ACCC), a well-known non-profit organization that specializes in providing professional debt counseling and restructuring services to individuals in financial difficulties. Ryan had a detailed interview with the ACCC's consultant and provided all his debt information and details of his income and expenses.

The ACCC recommended that Ryan take a debt management plan (DMP), which can help him consolidate all his debts and enjoy lower interest rates. The ACCC negotiated with all creditors (including credit card companies and lenders) on his behalf, requesting a reduction in interest rates and a partial waiver of late fees. Through ACCC's negotiations, Ryan's credit card interest rate was reduced from the original 25% to 10%, and some late fees were waived, making the total debt more manageable.

After several rounds of negotiations, Ryan and ACCC developed a 3-year repayment plan. Under this plan, Ryan needs to pay a fixed amount (about $500) every month to repay his debts. The ACCC manages this amount centrally and distributes the amount to each creditor on a monthly basis. This approach made it easier for Ryan to manage repayments and avoided the complexity of handling multiple debts individually.

As he made on-time payments with the help of ACCC, his credit score began to recover and eventually returned to over 700 points.

Benefits of debt restructuring

☛ Reduce the financial burden of debtors and help them manage their finances.

☛ Know your financial situation and avoid falling into a deeper debt crisis.

☛ Protect the credit record of the debtor, reduce overdue records, and maintain a good score record.

☛ Creditors can also reduce losses and increase the chances of recovering debts.

Recommended debt restructuring consulting agencies

You can find a reputable and powerful agency to complete debt restructuring. Here are a few credible agencies recommended for you.

☛ National Foundation for Credit Counseling (NFCC)

It is the largest non-profit credit counseling organization in the United States, providing free credit counseling, budget guidance and debt management planning.

☛ American Consumer Credit Counseling (ACCC)

This is a non-profit agency specializing in credit counseling and debt management services, providing free one-on-one credit counseling services.

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☛Local Legal Aid Organizations

There are legal aid organizations in various places, where you can get professional legal advice, financial assessment and other legal services.

☛Freedom Debt Relief

A well-known debt resolution company that focuses on reducing debt for customers. You can get very professional services and targeted solutions.

☛National Debt Relief

A specialized debt problem handling company that can provide professional services to customers and has an open and transparent charging method.

When facing debt pressure, it is important to clarify your financial situation and choose the most suitable solution based on your actual situation. Each debt restructuring method has its advantages and disadvantages, so before making a decision, it is very important to consult a professional financial advisor or debt expert to help you regain control of your financial situation.