Benefits You Get from a Debt Relief Council


by Hazel - Date: 2007-01-25 - Word Count: 1031 Share This!

Dealing with credit card debt is not as hard as you may think. If there's any consolation, you're not the only one facing such situation. At some point, many people like you face financial crises with credit card debt.



More and more consumers today find themselves in the uncomfortable situation of only being able to afford the minimum payments on their credit cards. Or, even worse, not being able to afford even the minimum payments. In today�s world, it is often easy to get in over your head and find yourself spending more than you make. It seems that everything is going up but wages, and it is all too easy to fall behind.



Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?



You�re not alone. Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming.



Debt consolidation allows a consumer to present their financial case to a lender who may be willing to take on the burden of paying off debts in exchange for one monthly payment made to the lender.



The Benefits You Get from a Debt Relief Council



A debt relief council provides management programs on how you can settle your problems on debts. Many debt relief councils are supported by credit card providers. They can help you directly on your problems on payments and bills. They will allow you to go under a debt negotiation service or counseling services where you can make plans on how you can work on settling your payments.



You may find a debt relief council that can reduce your balances by 40 to 50 percent. They will help in negotiating with your credit card company on how you can manage to pay your balances by settling with new agreements and terms of payment that are easier for you to handle. In some cases where your credit card company has filed for lawsuits for not paying your debts, they can assist you on how you can negotiate your case. In this way, you will have more time in making a plan on how to settle your accounts.



When you engage yourself on a debt relief council program, you will be freed from harassing calls from credit card collectors. They will do the tasks on receiving and answering the letters concerning your bills while you are analyzing your status on what plan would be best for you and for your finances. Here are some tips on how you can settle your credits.



The first thing to do is prevent the situation from getting worse i.e. stop the debt from growing further. So exercise control and try and remain within 70% of your credit limit. You might also resort to spending cash instead of plastic, just as a control mechanism.





Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?

The main reason for this risk is that in order to secure a lower interest rate (and thus a cheaper overall payment rate), you'll need to present some sort of collatoral to back the loan.



You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.



Bankruptcy is not your only option. Millions of people credit is devastated by bankruptcy every year. Though filing a Chapter 7 Bankruptcy will clear you of any obligation to creditors, it is devastating to your credit and will ride your credit report for ten years.




1. Learn to refuse credit card offers. It is recommended that you only use one credit card. This will help you to save more money and avoid paying multiple credit card interest rate payments.



2. You may change the plan of your credit card. You may transfer those high interest rate credit cards from a card that will allow you to pay a much lower interest rate. You may apply this plan since lower payments are allowed to be settled on limited months.



3. Make an APR negotiation with your credit card company. If you find it hard to pay the high interest rate on your current credit card, you may cancel your account and transfer your credits on a new card that offers low cost of payments on interest.



4. Avoid the temptation of shopping using your credit card. Use cash for buying items so that you will avoid high interest rates on your credit cards. Use your credit card wisely.



Debt relief council will help you to clear and reduce your debts. Choose a credible program that is legally registered and has a good track record in assisting consumers on how to handle their credits.





Another alternative is a Personal Loan or Debt


Consolidation Loan. This is one large loan to pay off smaller loans or debts. With one large loan, you will normally have a lower percentage rate and a longer pay off period.



Get the best interest rate you can if you opt for debt consolidation. This interest rate is almost as important as the one on your mortgage, but much harder to change after you've signed on the dotted line.


In addition, the major credit card companies, at the urging of the Federal government, have recently doubled their minimum monthly payment to about 4% of the outstanding balance.


Debt is a hard thing to live with, reduce debts today!

Many people are looking to consolidate debt online because they're short on time and money. However, it's important to proceed with caution. Take the time to explore what's available and decide upon the best course of action for you.

Related Tags: debt reduction, reduce debt, reduce credit debt, reducing debt

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.
 

Recent articles in this category:



Most viewed articles in this category: