If you need help getting out of debt, you may be tempted to reach for the phone book or Internet in search of a professional credit counselor. But there are many better options. One option is professional Active Debt Recovery services.
The primary benefit of these debt relief agencies is that they have an easy-to-use online repayment plan which helps you stay on track with your payments. At the same time, they negotiate with creditors and guide you by teaching you how to manage your finances and avoid financial devastation in the future. NDR follows up with clients after their initial contact, ensuring that their new skills are applied and repaid on time.
Once you realize that seeking a debt settlement or consolidation is unnecessary, the next major decision is where to turn. There are many different approaches and agencies to choose from that specialize in debt relief. Some offer complete solutions, but others may cost less and deliver the desired results.
The best way to get a clear picture of what is available is to talk with personal bankruptcy attorneys and learn about their experience with debt negotiations and credit counseling. Most attorneys are experienced in dealing with debt and may be able to offer some valuable insight.
Credit counseling agencies
Suppose your credit history is damaged due to a medical emergency, job loss, or other unfortunate circumstances. In that case, you will want to know about the services offered by different agencies that can help you start rebuilding your credit rating. There are also government programs and charities that can assist people who have a low income or may have lost their job through no fault.
There are two types of credit counseling. Both can help you avoid the possibility of losing your home or having to file for bankruptcy, but the services offered by these agencies vary widely.
Debt consolidation involves consolidating all of your debts into one lump sum. This is typically a lower monthly payment, with a more extended repayment period often required by the creditor or debt collector. The interest rate is usually higher, and there is no way to save money on fees or reduce your overall debt level. Debt consolidation can be a good option if you have many creditors and are likely to have trouble paying back what you owe.
There are many debt management plans available for consumers. When you choose a project, it will be reviewed by a credit counselor before being put into action. In most cases, debt management is not ideal for families with children or who want to save money on debt payments. For example, if your interest rate is 20%, using a debt repayment program may cost you more than paying for a monthly payment and the lower interest rates on other options. If you want the convenience of monthly payments without the long-term effects of accumulating more debt, you should consider credit counseling or bankruptcy in your planning process.