Help Debts

Chikine S:

If you have considered debt consolidation then you are probably a little overwhelmed with the mass amount of debt consolidation companies there are to choose from. With some of these debt consolidation companies, it’s hard to even find out what debt consolidation is all about. It seems you have to commit to sharing your entire financial history, as well as sitting through a high pressure sales pitch, with some.

It may not have occurred to you that you can take debt consolidation into your own hands. As with most things in life, there are going to be advantages and disadvantages with handling your own debt consolidation. Credit counseling may be in order before even considering debt consolidation, if you don’t have any idea where to start. It’s important to remember that there are resources available and it’s best to use them, rather than trying to wing it, when it comes to debt consolidation.

The first step in do it yourself debt consolidation is to assess the situation. You need to know how much debt you actually have, how old the debt is, and whether or not the debt is still with the creditor or if it has gone to a collection agency. Then you should prioritize your debt. Debt consolidation should not result in the loss of any of your secured property, so you will want to deal with those creditors first.

Once you have a clear picture of your financial situation, use the debt consolidation resources that are at your disposal to contact your creditors and begin negotiating. The process of debt consolidation does not need to be a complicated one. Taking care of your own debt consolidation will certainly be more stressful than taking your case to a debt consolidation company, but you will save a little money and learn valuable lessons regarding credit and debt consolidation along the way.

PelMel:

If you’re getting hassled by creditors, your credit is already bad–going to debt management won’t make it worse. While under debt management, it is possible that you could be reported as a late payer or there could be a note that you are under a payment plan. That’s a whole lot better than ending up in court with a judgment against you or filing for bankruptcy. While there are no miracle cures for bad credit, debt management can be the first step towards improving your credit. While under a debt management plan, your late fees can be erased, interest rates reduced or eliminated, and you won’t get any letters or phone calls from creditors.

I always recommend Consumer Credit Counseling Service. They’re reputable, non-profit, and nationwide. You can talk to CCCS for free to decide if debt management is right for you. Below is a link for the Atlanta office. You can find one closer to you. Good luck!