Debt solutions – including debt settlement consumer credit counseling and bankruptcy as options
In these current times, you are not alone if you feel like you are drowning in debt. We as a country are currently facing challenges that we have never imagined. These problems can be overcome, the truth is that your debt can be resolved with a number of different strategies. If you or someone close to you is in financial distress, look at these options: realistic budgeting, credit counseling, debt settlement or bankruptcy. Need counseling to decide what is best for you or your family?
The first challenge that needs to be done is to pull out all the statements of your debt and get out a calculator and add up how much you currently owe and what your minimum payments are and how much you are actually paying. We have found that most people are not only genuinely surprised to find that they actually have more debt than they thought, and that they are also making larger total payments than they thought they did. It is very important that you create a budget, you need to figure out how much money you have and how much money you are spending. These include your fixed bills, your basic bills, groceries, gasoline and entertainment. You need to keep up with all of these expenses. You need to figure out and prioritize which expenses are more important than the others. If you find that you have more expenses than income, you should wait to contact your creditors if you still have available balances on your credit cards. If you think your shortage can be fixed shortly, it's best not to share the information with your credit card companies. Credit card companies will likely reduce your available credit line, many people have complaints against credit card companies for lowering credit lines when information was passed along that they were having problems. If you can't make payments and are approaching your maximum limits, it may be beneficial to give them a call.
Dealing with debt collectors; a debt collector must comply with a written request to leave you alone if it is worded correctly. The Fair Debt Collection Practices Act is the federal law that dictates how and when a debt collector can attempt to contact you. A debt collector can't call before 8 a.m. or after 9 p.m. A debt collector can't call you at your place of work if your boss doesn't agree.
Credit counseling: If you don't have the discipline to stick to a budget and you can't seem to work out a repayment plan with your creditors. You need to consider contacting a credit counselor. They can help you plan a budget, stick to that budget, set up payment schedules and give you more information on how to become debt-free. Certified counselors can give you advice on everything you need to know, such as z. B. A budget, classroom materials and maybe a workshop. The advisors will discuss the entire situation with you and tell you exactly what to do. An initial session lasts about an hour and offers follow-up sessions. The advantage of consumer credit counseling is that debts that can last 10 to 20 years can be resolved in a 4 to 6 year period if you have high interest rates and can make at least your current minimum payments. The negative side is that you have CCCs alongside all the creditors that are included in this program, and that mortgage and other underwriting loan guidelines are akin to bankruptcy. It may be that debt settlement with a reputable debt settlement company would be worth serious consideration.