Debt Consolidation- How Do You Assess Your Financial Situation?
Debt consolidation or debt settlement – this is a question that most people ask themselves when they are in huge debts. When you are assessing your financial situation, you should decide whether to do it on your own or take professional guidance in the matter. If you have all your documents in order and are confident that you can manage all the communication with your creditor on your own, you may proceed with your debt relief program. However, if the whole process seems too overwhelming and you would like guidance in the above field, you may seek the intervention of a debt settlement or a debt consolidation service provider for aid. ccj enforcement
Choosing to work with a qualified and experienced lawyer in the field of debt consolidation or debt settlement. No matter whether you prefer to do the debt relief alone or join hands with a debt settlement or consolidation lawyer, you should be as honest and candid as possible about the financial hardships you face. If you have a history of making payments on time when it comes to payment of debts and bills, this largely helps you.
Check the online reviews and testimonials if you are hiring a company for your debt relief program.
If you are hiring a company for your debt relief program, make sure that you read customer reviews and testimonials carefully. It is prudent for you to do your homework beforehand. To conduct an online search of the debt settlement or debt consolidation company on Google, enter its name in the search string. Read all the available online reviews very carefully. You should check the reviews that cover a good duration of time so that you can track all posts from previous to present. Make sure that you trust your instincts when you decide to choose a specific company for your debt relief needs.
The license of the company has to be checked
When you are about to hire a debt settlement or debt relief company, ensure you check whether it is licensed or not. You may contact the Attorney General of the state where you reside in to check whether the company you are checking has the right license for you to bank on when it comes to debt relief. You may also check Better Business Bureau or BBB to see if the company in question is listed when it comes to integrity and complaints.
Check for any related fees
When you are looking for debt settlement or debt consolidation companies, make sure you check for any associated fees. Some companies might ask you to pay a certain amount of payment when the process for debt relief begins. Again, some companies might ask you to pay fees every month in the form of installments as a fixed percentage of the debt owed finally. Note, that even if you agree to all of the above offers, it is not mandatory that a creditor will accept the offer for debt settlement by you. A reputed name in the field of debt relief in the USA,
Nationaldebtreliefprograms.com says that you should be educated on the fact that interests will accrue persistently in both debt settlement and debt consolidation. If the process prolongs, you finally land up paying more when it comes to debt relief overpaying associated fees for the company offering you debt relief programs.
Should you consider bankruptcy
If you are neck deep in debt and believe that debt settlement nor debt consolidation will not work or you, it is prudent for you to file for bankruptcy. This helps you to eliminate the current debt. It also permits you to keep some of your assets. This might seem to you as a viable option, but you should note that it hampers your credit score in the long-run.
Calculate the amount of debt you owe
It is prudent for you to examine your financial papers or get access to credit reports. Make a list of the loans against your name, the sum of the loans that are pending as well as the present rate of interest on them. Also, make a column and note down the present status of the loans now. Check whether the loans have been sent to collection agencies or has been charged off.
Check what your present credit score is
Look at your credit report; you will find your credit score either at the end or the beginning of the report. In case, you plan to opt for a debt relief program immediately, the credit score number depicted in the report is the one that you will use. If you wish you might opt for a debt relief program later. During this time, you can work on improving your credit score. However, be careful. Take time and utilize it properly or else you will be paying more funds on interest with extended time. In the case of debt consolidation, note that you will be given a new loan so here you might not be approved for debt consolidation with a poor credit score.
Check the payments you need to make for your bills every month.
In context to the above, examine how much you can pay every month for your bills. Check your present budget and see how much money you can give for paying your bills every month. You need to be accurate when it comes to the amount of money you will dedicate every month to pay your bills. This will help you choose the debt relief program best suited for your current needs.
Last but not least, determine as to whether you can make a lump sum payment towards clearing the loans you owe. This allows you to save a lot of time in the future when it comes to clearing debts. However, experts say that despite clearing your debts, make sure that you always have an emergency fund in place so that if anything sudden happens, you are covered. If you plan your finance management there will not be problems for you to face.
Thank you,
Glenda, Charlie and David Cates
