Chapter 13 bankruptcy pros and cons

It's going to stay on your report for a long time, but you won't lose your home.

Obtaining a Small Business Credit Card

Corporate cards are typically used for larger businesses with one hundred or more employees.

How to Raise my Credit Score

Increasing your credit scores by a few points might mean the difference between getting a loan or getting a better rate.

A Flashback of Home Equity Loans Before the Housing Crisis

If only things worked this way. Oh wait, this is how it used to work before the housing crisis!

Bad spending habits that lead to debt

Are you among the ones with a reckless spending habit?

Making a budget is a good first step in learning to save

Saving up is a good idea for countless reasons. But breaking old habits and setting some money aside each month can seem like a daunting task.

Unsecured Versus Secured Credit Cards

Despite the collateral, secured cards carry high fees. Still, they are easier to obtain than unsecured cards.

Colorado Debt Consolidation is Highly Regulated

Debt consolidation can be an ideal route for reducing debt if you prefer to deal with a bank in regards to loans rather than a third party.

Medical Debt Consolidation: Not a Sure Cure

This financial strategy comes with considerable risks and a few costs of its own.

Can I File for Bankruptcy for Free?

Personal bankruptcy can be filed without retaining an attorney, although it is seldom advised to do so alone.

Chat with a debt expert Monday
through Friday, 8:30am - 7:00pm ET.

Home

Blog

Forums

Articles

My Debt

How To...

About Us

Steps to Debt Relief Can Include Wrong Turns

By Erik Hammel on October 28, 2011

802377_89113338-(1).jpg

With credit card late fees continuing to climb higher, it is easy to find yourself in a heap of debt with a poor credit score. Fear not, however: removing those ugly negatives from credit reports has never been easier. Debt relief programs can assist you in lowering your debt and improving your credit score.

But how do you know if you need help with reducing your debt? There are some indicators that suggest a financial problem. For example, if your credit cards are maxed out or close to being maxed out, this is an issue. If you are covering your debt by borrowing more money from other lending services or simply do not have enough funds to put away as savings, these are signs of financial trouble ahead. These indicators can snowball into creating huge financial difficulties ahead so the sooner you attack your debt, the better probability you have of clearing it quickly.

Choosing the right debt relief program involves first choosing the right company to work with. When deciding which debt relief service to use, there are a number of components you should regard. These include:

Solutions. Is the company able to provide a number of options to go about reducing debt? A well-versed debt relief program can design a debt relief program specifically designed to your needs.
Payment. How does the debt relief company charge you? The highest rated debt relief programs will take a percentage of what they saved you. That way, the debt relief program only gets paid if they save you money.
Dependability. There are many unreliable debt relief firms out there. Finding out how long the company has been in business and whether they are affiliated with the BBB (Better Business Bureau) is a must to determine if it is a trustworthy company.

A secondary option is to hire a debt management consultant. The best way to make sure you are dealing with a trustworthy person is to get a referral from someone you trust. Unfortunately, there are many untrustworthy, immoral workers in the debt relief field that will do whatever it takes to take your money. Ensure you are dealing with a good consultant by doing background checks and asking for references before giving them any of your financial or personal information. Once you have found a consultant you are satisfied with and trust you need to be completely open and honest with them about your situation.

Insist that the process must start straight away. After discussing your debts and laying everything out on the table, these consultants can help speaking to your creditors on your behalf. They can help arrange more suitable payment plans and renegotiate interest rates or make mortgage payment holidays. These “holidays” allow the borrower to on occasion delay making a mortgage payment for a fixed period of time.¹ In addition, your consultant can also help you find the best consolidation loan where repayments are possible on your current income. Being knowledge in financial planning and personal debt, a debt management consultant will have all a plethora of ideas that could help you climb out of the toughest financial situations.

Reference:
¹http://www.confused.com/mortgages/articles/take-a-holiday-from-your-mortgage-with-help-from-confused-com

Current Rating: 0 (0 ratings)