When you are fighting to pay your bills every month, it may cross your mind to simply walk away from your debts and go hide some place until the economy improves. However, with a continued slump in the housing market, millions of people still out of work and gas and grocery prices rising, it does not appear that this is a realistic plan for financial distress. While bankruptcy may seem like a good option, it would have long-lasting consequences that could last as much as a decade. Instead, it is worth considering credit services that work to resolve debt problems.
Debt Relief Companies Past and Present
In the past, debt relief and consumer credit counseling organizations earned a bad reputation for preying on individuals when they desperately needed financial help. Many predatory debt relief companies insisted on charging high fees in advance of working on behalf of a client. Additionally, consumers were frequently given poor advice, which resulted in even further financial problems for them. Because of that, many consumers were duped out of what little money they had available and already-dismal credit scores fell further.As a result of past questionable business practices, the Federal Trade Commission recently changed regulations regarding how credit counseling agencies operate. In addition to forbidding companies from charging up-front fees for their services, credit counseling organizations have strict guidelines regarding how claims of the benefits of their services are represented to potential clients, and certain disclaimers must be included in promotional materials and advertising.
Reputable consumer credit counseling companies do not charge up-front fees, and they do not claim that they will eliminate your debts entirely. The reality is that it is almost impossible to eliminate your debt entirely. Even in the case of declaring bankruptcy, changes to bankruptcy laws made approximately 10 years ago require most people to pay at least a portion of their debts to creditors if they have an income.
At DebtConsolidation, we pride ourselves on our ethical and reputable treatment of our clients. We are members of the US Chamber of Commerce, the International Association of Debt Arbitrators and the American Fair Credit Council. We charge no up-front fees and you are not asked to pay us anything until we can show you results.
Debt Negotiation and Settlement
One form of credit services that work is debt negotiation and settlement. Our trained and experienced credit counselors communicate with your credit card companies and other creditors to reach an agreement that reduces your debt and provides a workable solution for you to repay your debt.
From television reports, many people are under the impression that debt negotiation is fairly simple and something they can do on their own. However, after they embark on this process, they soon find that it is more difficult than it appears.
Many creditors are reluctant to negotiate with account holders to reduce their debts. Instead, they may offer hardship programs as a temporary solution. However, hardship programs rarely reduce debt in any tangible way. They do not lower your interest rate or reduce the amount of money you owe and they only last a few months.
Also, reaching a person who has the authority to negotiate with you to reduce your debt can be extremely difficult. If you are trying to negotiate debt on your own, you may find that, even with countless telephone calls over a period of several months, you are not further along in reducing your debts.
Our skilled credit counselors, on the other hand, have the experience and knowledge to be able to talk to decision-makers and bring them to an agreement to reduce your debt with them. In many cases, a negotiated debt settlement may include a combination of lowered or eliminated fees, reduced interest rates, lower principal amount and a lump sum payment. In fact, on average, our clients discover that through our efforts, their debts are reduced by 50 percent.
With a negotiated debt settlement agreement, many of our clients welcome the opportunity of getting help paying their remaining financial obligation. In conjunction with debt negotiation, we also offer debt consolidation services. Unlike many other credit counseling agencies, we do not recommend debt consolidation loans because they actually put you further into debt. Instead, we have a program in place that makes paying your debts more manageable.
With our debt consolidation program, an account is set up in your name that allows you to make a single monthly payment for all of your agreed-upon debts. In turn, we make all of your monthly payments to your creditors. Since your debts have been reduced through a settlement agreement, your monthly expenses are lowered overall, and you will probably have more room in your monthly budget to pay other debts.
By using credit services that work, we can help you dig your way out of financial distress. With regular monthly payments, your credit scores should start to improve within a short period of time, all without the need to take the drastic step of filing bankruptcy. If you believe you would benefit from our proven credit services that work, contact us or fill out the form for a free debt analysis so we can get you on the road to financial freedom from debt.