If you’re dealing with serious consumer debt,you may be wondering how you can get help without getting screwed over. If you go online and search on terms such as “credit card debt reduction,” or “debt settlement,” you’ll find that there are a number of alternatives. In fact,if you search on the term “credit card debt reduction,” you will get more than 70 pages of results.
So how can you know where to get help?
Do your homework
Before you leap in,do some homework. Read some articles so that you will have at least a general understanding of debt relief,debt consolidation and credit card debt reduction.
It’s also a good idea to look at several debt relief solutions that you feel might be right for you. This could include a bankruptcy attorney,a group that provides credit counseling,a company that does debt settlement or a company offering debt settlement loans. When you contact them,be aware that each one will try to sell you that their solution is your best option. Also,be aware that most of the representatives you talk with are paid on commission. This means their motivation is to sell you their solution regardless of whether or not it might be your best option. Representatives of credit counseling companies may not be commissioned salespeople but they still have motivation to get you in their plans. This is how even non-profit groups earn money and how their employees stay employed and in good standing.
Is the company putting you first?
A good debt relief company will gather information about you before recommending any solution and honestly explain to you the range of options you have before signing you up for their program. It’s sad but many credit counseling groups will mislead or lie to you about debt settlement. In comparison,an honest debt settlement company will encourage you to contact other debt relief providers before you decide to join their program.
Save room for monthly savings
In most cases,the debt settlement company you choose will require a monthly payment. If so,make sure that you can afford it and that there will be money left over for savings. While you’re digging out of debt,it’s critical that you can still build your financial emergency fund so that if you are hit with an unexpected surprise,you will have money to weather the storm. In the event that you see that you can’t make the required monthly payment and still save money,you have probably not chosen the right solution.
Sleep on it
Do your homework,make sure you feel the debt relief company is right for you,ensure you can meet any required monthly payment comfortably… and then sleep on it for a day or two. You’re not buying a toaster or a microwave oven. You’re making a very large commitment and it’s crucial that you’re comfortable with what you’re doing before you sign on the dotted line. Unless you’re being threatened with foreclosure or the seizure of some asset,there’s just no reason to rush into a decision that could have a very profound impact on your life.