A good debt management company will give your case the individualized attention you deserve, analyzing every detail of your financial situation. Taking all factors into account, the debt management firm will work with you to develop a step-by-step plan to manage, reduce, and eventually eliminate your debt.
Your counselor may suggest consolidation of your bills, and will help you to do this. He or she may negotiate one-on-one with your creditor(s) to lower your debt and set up regular payment plans. These and other strategies are at the disposal of a competent debt management counselor, and he or she will help you to select and implement a debt management plan that is realistic and comfortable for you.
There are two common reasons why people in debt choose not to work with debt management companies: 1) They do not trust the debt management industry, or 2) they already are so financially distressed that spending money on a debt management company does not seem worth it. Fortunately, such fears can be eased.
While there are some disreputable debt management firms, it really is quite easy to verify a company's credentials. Simply check the Better Business Bureau Online (http://www.bbbonline.org) to make sure that your company is legitimate.
While the costs associated with debt management companies may be of concern, the real concern should be the costs associated with not seeking help. Reputable debt management firms will save you substantial sums in the principal and interest that they will work with you to reduce.
The use of a debt management company is a financial decision: Does the money you will save with the company’s assistance justify the cost of seeking help? In almost every case, the answer is a resounding yes.
Some debt management companies work on contingency, which means that they do not receive payment unless your situation improves. Normally, however, such companies charge a higher fee if they are successful, so weigh the pros and cons of using a contingency-based firm versus a firm that requires payment upfront.
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When debt help is not enough: 3 reasons for filing bankruptcySituations can arise that make paying your bills impossible, or that render you ineligible for participating in debt relief efforts such as credit counseling. When you're enduring any of these circumstances, consulting a bankruptcy attorney can provide information about your rights and the consequences of filing bankruptcy.
Personal spending rises as income slipsPersonal income declined in August, but personal consumption expenditures rose, according to the Bureau of Economic Analysis.
3 reasons for consolidating credit card debtAre you paying more than one credit card bill each month? Have you overlooked a bill and incurred penalty interest rates or late charges? Consider credit card debt consolidation for simplifying debt management chores.
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