What is Debt Relief and What Consumer Can Benefit from This?
By Greg@ccc
Lets start by saying that debt settlement is not for just any consumer. For those who have complexity managing their money or figuring out which bills to pay and in what main concern to place them in, a debt settlement program is NOT for you. In most cases, it will do little more than elongate your situation and create additional hardship. Lets put it this way. If you enroll in a program that is 24 months long and you drop out in 7 months, you will likely have lost fees that youve invested and be deeper in debt. Lets not forget that your creditors were notified that you were in a program and now theyve been notified that youve left and dont be going to repay them anything.
What now? If this is you, contact your local Better Business Bureau and find a trustworthy consumer credit counseling company to lend a hand to you with your debt situation. There is a longer term affect on your credit profile and it will take longer to correct your situation, but your goal will be achieved safely. This is your financial future were talking about!
What type of consumer IS right for debt settlement?
If you know how to manage your money and youve always been able to pay your bills in the past, you are almost certainly just facing a situation where you dont have sufficient money to manage any longer or for the first time you can see yourself being in that place in the near future. Am I right?
Ask yourself these simple questions. Your answers may surprise you.
* Do I know how to pay my bills and manage my money?
* Can I pay my bills with the income that I have currently?
* Can I pay more than the minimum payment?
* Do I live paycheck to paycheck?
* Have I been denied credit, even though my payment history is impeccable?
* Is my credit score dropping like a brick off a building because of the debt I am carrying?
* Am I besieged by credit card payments, struggling to find money for food and gas?
* Am I at risk of being delinquent on my mortgage or car loan?
* Can I qualify refinance the same home I qualified to purchase 2-4 years ago?
Dont be a victim of this economy.
First investigate your options. Debt settlement may just be the way to help you keep away from bankruptcy. In its most simplistic form, debt settlement is intended to hold your creditors at bay, long enough for you to save your money and conduct a business transaction with your creditors. Debt settlement is a shorter term process which allows for a lessening in balance owed, in exchange for a lump sum of money, delivered to the creditor all at one time.
Dont be mistaken, your creditors will tell you that they dont work with debt relief companies and that they dont settle or negotiate balances. Remember who they are. The person on the other end of that phone has a job to do and is responsible for collecting your payment. They get paid when you pay your outstanding bill. Why would they tell you about your debt settlement options or acknowledge and confirm that the option exists? It makes sense that they would make a last stand, but lets be realistic. This is the business of your financial future and you need to take back control of it.
Christian Credit Counselors is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit Counselors manages clients helping them to achieve financial wellness through counseling and education across the country.
