How to decide what debt help is right for you
A lot of people advise that everyone should do their own credit repair. Ideally, this would be a very good decision since no one knows the details of your situation as well as you. However, not everyone has the time that is required to dedicate to this task, nor will everyone be able to accomplish the same results as a professional would. For these reasons and others, many people turn to professional services for their debt problems. The problem is; how do you know which program is right for you? Would debt consolidation, debt consultation or bankruptcy be the best choice for you? Choosing the wrong option can have a negative impact on your financial life for many years to come. So who can help you with this decision? When you do decide what to do, how do you find out which company is reputable?
Choose a provider that is certified by the United States Bankruptcy Trustee, even if you are not filing for bankruptcy. These companies are screened by the United States Trustee for quality and effectiveness. Here’s a link to the U.S. Trustee Program.
Contact the Better Business Bureau. They have reports on the companies for you to review. Take your time to choose because some debt consolidation companies can make your credit worse. Good luck.
Most of the debt repair/consolation/settlement companies want their fees up front and leave you credit trashed.
Check nfcc.org for legit non-profit credit counseling services. They can help you set up a budget and work out clearing up your debt.
You can tackle your debt yourself by putting every extra penny on the highest interest rate debt, while making minimum payments on the rest. When the highest is paid, move to the next, till they are all paid off.
It will take 2 or 3 years but if you work at it, you’ll be out of debt with a good payment history.
The advantage of getting legal help for your debt problems is that it prevents your creditors from harassing you. They must contact the company that is representing you. Their fees are added onto your monthly payment and some can be as low as $10 per month. Some charge according to how many accounts you have, like $5 per month for each creditor. This site can help match you to the help you are looking for: choosedebtfree.com
Sadly, I often see people heading from debt consolidation and/or debt settlement to bankruptcy after being fleeced for excessive fees. I am biased, but I firmly believe in consulting with an attorney on issues of crippling debt. Others had some excellent suggestions as well.
Bankruptcy is not the right option for everyone and a good attorney is most qualified to offer advice on these issues. Even if bankruptcy is eliminated as an option this has the value of informing other alternatives.
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I can tell you from 15 years experience in finance that consumer credit counseling (CCC) is often not the answer to the financial woes many face. If your credit situation is at a point where you are seriously considering CCC it would be wise to also consider bankruptcy because a bankruptcy can actually cost you less in upfront and recurring fees in the long run. Additionally, many creditors look at CCC as a negative factor and it can take up to three years of re-established credit to get back in their good graces (similar to a bankruptcy).
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There is no other good solution but to look for the best and well trusted company that would guide you to your situation regarding your financial problems. Well, thank you for the good information you have forwarded to us..