subject: Reduce Debt with Debt Counselling Services [print this page] Debt counselling services aim to help consumers get out of debt. But the professionals who work in money management also strive to help people create and maintain a budget so that they can not only repay their debts but remain debt-free once all debts are repaid. The counsellors provide a variety of services to help consumers, and most people are grateful that there is a way to stop all of the calls and letters from collection agencies.
But debt counselling services have their own terms and conditions, and consumers need to be aware that hiring a debt service doesn't mean they'll be debt-free, allowed to cancel out debts, remove interest rates, or get out of debt within a certain time frame. In fact, using a debt management service means you may have your payments spread out over a few years, but the counsellors work to help you budget so you can continue to afford necessities.
Debt Counselling Terms
A debt counselling service doesn't generally take on clients for free, and it provides its own set of terms and conditions that must be met in order for the negotiations and proposals to be valid with the crediting agencies. When working with a debt management team you will be required to pay a fee for the services. The services include all of the negotiations made between the debt management team and the crediting agencies on your behalf, the initial consultation, and any further meetings or consultations to help you budget and repay your debts. If you write a cheque for the service fee and it doesn't clear your financial institution, the debt management company may rescind any offers and negotiations currently in the works with your creditors.
How the Debt Services Work
Once you agree to use the services, your debt counsellor will sit down with you and figure out the amount of money you have available each month to pay creditors. From this amount, the counsellor will try to negotiate smaller payments from each of your creditors so that each creditor is receiving some form of payment each month. Once the amounts are determined, you will be required to pay the agreed upon fee each month for the duration of your debt relief services. While debt counselling services can't get rid of your debt, it can help you manage debt now and prepare for money management in the future.
