Debt solutions and debt problem


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Debt solutions and debt problem

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Debt solutions and debt problem

  1. 1. Debt Solutions Credit Card Debt Solutions That Work WellCredit card debt solutions do exist, and you can utilize them to get the results you want and need to live a morecomfortable and free life. Dont believe me? Plenty of people are taking advantage of high quality services thatcan turn their debt into a clean slate and give them a new lease on life. It doesnt have to be difficult to do this, infact, anyone can do it. Finding a good credit card debt solution that gets you results is the real trick, and findingthe appropriate solution. Read on to learn more about what your options are.Credit card debt solutions come in a wide variety of applications. For example, a common and free way to easeyour debt is to just save more money and be more frugal. Most people who are looking for debt solutions arelooking for much more severe solutions though. Some are considering bankruptcy while others are trying to settletheir debt. Whatever your situation, just remember that there is always a choice at your disposal and as a lastresort you always have bankruptcy.If you havent already, make sure you dispose of your current credit cards or minimize the use of themsignificantly. The more you use the cards the more you will pile on more debt and take huge leaps backwards.This is not what you want to be doing when trying to eliminate your debt. If you are suffering with monthly bills thatoutnumber your income, make sure you consult a consolidation company that can help you with this, there are aton of these available and many of them are non-profit organizations who will help you for free.When youre getting into more serious situations like dealing with tens of thousands or even hundreds ofthousands of dollars in debt, consulting firms or companies that specialize in this kind of debt can be a huge helpto you. Many services specialize in credi card debt solutions and can help you to rid yourself of debt through avariety of legal means. Going with these services certainly can cost a bit more but it is well worth having theirexpertise at your disposal. For example, consulting a company or firm that specializes in credit card debtsettlement or bankruptcy can greatly benefit you since you can use their experience and knowledge to expeditethe whole process. Their advice and experience comes at a cost, but it is well worth it.Putting your debt into perspective is an important first step for assessing your next steps.Knowing how bad your debt is, what your options are, what the best options are and whatlocal firms can help you sort out your debt are all very important things you should put onyour to-do list. Make sure you do your research on the appropriate measures to take and dontbe afraid to ask questions. The more you know about the process and your options the betteryou can make your decisions and save yourself hassle and headaches in the long run.More about Debt Problem or even more info about Debt Problem
  2. 2. Credit Debt Solutions - Credit Counseling Vs Debt Settlement CompaniesCredit counseling and debt settlement companies are two ways toward credit debt solutions. There is no doubtthat both are best but still there are differences in these credit debt solutions.First of all, credit counseling provides training and education about credit management. A creditor counselor helpspeople in getting out of debts along with providing guidance about how to stay away from debts. Mostly peopleare afraid of credit counseling because according to them it lowers their credit scores. Actually there is no suchthing with credit counseling. A counselor can also negotiate with your creditor to lower down his interest rates foryou. Through this process, people not only get relief but also learn how to avoid these situations in future. Debtsettlement companies dont provide such training and education. They just do things by charging their fees andthey have no concern about the future life of their customer. Once a person has settled his onetime debts and heis out of business with these companies, they dont care about his life.Credit counseling provides different kinds of lectures and offer many valuable workshops. A person who wants tolearn more and more about how to save money and how to make budgets can join these programs. A counselorreads the credit history of a consumer and finds out his weak points. He reads his bills to find out his spendinghabits. In this way, they can suggest a good working plan for a person. That plan can help a person in making hislife well even after he is out of debts. In credit debt solutions, this thing makes credit counseling different fromother solutions.The Best thing to get out of debts as early as possible and avoid bankruptcy is debt settlement. This can beachieved very easily through debt settlement companies. They will not provide any kind of training but they willmake the whole process much easier for you. Most amazingly, it takes much less time as compared to others. Iteliminates debts up to 50% or even more. In credit debt solutions, debt settlements companies provide quickestrelief.If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Dueto the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debtsettlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out thefollowing link. Free Debt Help
  3. 3. How to Choose the Right Debt Management Company to Help Solve Your Debt ProblemPosted June 19, 2011There are many different debt management companies. We suggest the things to considerwhen choosing the right one to help you solve your debt problems.When looking for advice for solving a debt problem many people will first turn to theinternet.The web is an excellent place to find information about debt solutions.However, with between 300-400 debt management companies in the UK, the results you aregiven by a search engine will probably include a huge number of different sites.There have also been recent reports in the news about some rogue debt managementcompanies who have provided poor service. Choosing which advice to take and the companyto trust can therefore be difficult.You should use the following advice will help you make your choice and get on the right roadto becoming debt free.Licensed by the OFTThe first thing you need to do is check that you are dealing with a properly licensed company.Any company and charity which provides advice or solutions for debt problem must have aconsumer credit license issued by the Office of Fair Trading (OFT).The OFT take the licensing of debt management companies very seriously and have recentlytaken away the licenses and closed down various companies who do not act in the requiredway.The license number should be clearly displayed on the web site you are looking at. You cancheck the license is genuine by logging onto the OFT website and searching on the licensenumber.A properly licensed advisor should explain the different debt solutions available to youincluding a debt management plan (DMP), individual voluntary arrangement (IVA), DebtRelief Order and bankruptcy. They should help you understand the advantages anddisadvantages of each in the context of your financial situation.
  4. 4. If you cannot identify the companys license number then you should steer clear of theorganisation.Free v FeeAll reputable and licensed debt management companies should give you free unbiased adviceabout the debt solutions available to you. You should never have to pay for initial advice.If you then decide that a debt management plan (DMP) is the right solution for you, you needto consider whether you want to pay for help to implement this.Charities like the CCCS do not charge a fee to help put a DMP in place for you.This is therefore initially a very attractive option. However, many of the services are providedon line and you might struggle to speak to an advisor in person. As a result mistakes can bemade and a poor solution implemented which will not resolve your problem.On the other hand, if you use a commercial debt management company, you will alwaysspeak to an advisor and should get a more personal service. However, you will be charged afee for this.There is no evidence that a using a charity to implement a DMP will give you any advantagein terms of getting interest and charges frozen or preventing further action being taken againstyou such as a charging order against your property.In fact, the commercial debt company may be able to do better in this area as they have moretime and resource to be able to keep working with your creditors until an agreement oninterest is reached.The IVA optionIf you decide than an individual voluntary arrangement (IVA) is the right solution for you,you cannot implement this by yourself. You must use a licensed insolvency practitioner (IP)to help you.Generally you get access to an IP by speaking to a reputable debt management company whowill first check that an IVA is suitable for you.You will not be charged a direct fee to complete an IVA. Your IP will be paid fees late butthese come out of the payments you make and you do not have to pay any extra to coverthem.
  5. 5. The fees charged are regulated by the creditors and will generally be the same whichever IPyou choose.Some companies will ask you to pay an instruction fee to prepare your case before it goes toyour IP. There is no need to pay a fee like this. You will not get any better service and it is nomore likely that your IVA will be accepted by your creditors.As such, you should base your decision on which IP to use on whether or not you feelcomfortable with the person you are speaking to and company you are working with.Feel comfortableAt the end of the day, the most important thing when dealing with your debt is to work with alicensed organisation which you confident will do a good job for you.An ideal way of doing this is by getting a recommendation. However in the absence of this,one way of becoming familiar with how a particular company works and the advice they giveis to follow their experts on an on-line debt forum.If you do not feel you have the time to do this, as a minimum you should speak to 2-3different debt management organisations.In the light of the advice already given above, you will then be able to weigh up what youhave been told and the solution suggested.You should then choose to work with the organisation which you feel most comfortable towork with.