subject: Debt Relief Services- Debt Relief Companies An Overview [print this page] Debt Relief Services- Debt Relief Companies An Overview
Overwhelming debt is a common problem in America today. People are finding themselves in a financial mess for several reasons like losing job or sudden medical expenses. However, the key reason is uncontrolled spending habits. With the recen change in the bankruptcy laws there is no easy way out of debt left. There are however other ways of finding debt relief. These debt relief solutions do not bring your financial condition under control overnight. A debtor has to be patient and work honestly towards getting a debt free life.
The first step of debt relief should always start by contacting the creditors themselves. Depending upon your previous payment history they might be able to help you with a lower rate of interest or an easy payment plan. It might be possible that they can give you a payment plan without hurting your credit history. The next step is to get in touch with a credit counselling agency. These agencies help consumers for free or for a minimal charge. Taking an session with the credit counsellor will not hurt your credit rating. Once you sign up for a debt relief program then the credit ratings will get effected which will be pre informed to you by your counsellor. Sometimes your financial problems can be solved by just reorganising your budget and a few changes in your spending habit. So you must not be afraid of a credit counselling.
If the debt amount is too high one can contact a debt relief agency. These agencies will help you in consolidating your debt which can bring down the overall interest rate and make your debts more manageable. They can also help you in getting a debt settlement if you are eligible for one.
One can find several advertisements on the television and the newspapers about various debt relief companies. However, the Federal Trade Commission strictly warns customers from signing in for any of these debt reliefs without knowing exactly what you are getting into. There have been hundreds of cases in the recent past where a customer has complained that the company did not get the financial relief for them and had charged a heavy fee for their service in advance. It is always recommended to read all the documents, even the small prints before signing up for a debt relief option. You might find a clause which many require you to declare bankruptcy which you would not have been aware of otherwise.
