Debts you don’t have a grasp on can make your life hard in many ways. To achieve relief through debt consolidation, research is key. Through the post here, you’ll have great info that will help you make the right decisions to further improve your financial situation.
Ask your credit card company if they’d accept a lump payment for a lesser amount than the debt. Many companies will accept 20% to 30% less than the amount you owe currently just to get the cash in hand. If you can scrape up the cash, this is an excellent way to save funds that can go to other debts.
Try using a debt consolidation service to pay down your debt. When you look for one, make sure they aren’t charging high fees. You can check with a local consumer protection agency like your local BBB. You may have to make sacrifices via using extra lines of credit and harming your credit rating, but they can help get your debt paid off. They generally require a single monthly payment.
Prior to entering into consolidation agreements, review your own credit report. You must know what got you into debt in order to fix your situation. Find out how much you owe and whom you owe it to. You’re not going to be able to develop a solid plan in which you make different choices in the future if you don’t do all of this.
A non-profit debt consolidation agency is not necessarily a better option. Regardless of the status of your debt consolidation agency, contact the Better Business Bureau to make sure it is a legitimate business. If you find that some complaints have been filed or come across some bad reviews online, find another option.
When you are consolidating debt, you must try to renegotiate with your creditors. Whether you are choosing to try and do this yourself first or have enlisted the help of a debt consolidation company, renegotiation is key to saving you a lot of money when paying off your debt.
Always call your state’s consumer protection agency before signing anything with a debt consolidation agency. Make sure the agency is properly registered, has a valid license and no complaints filed. You should not work with a professional who is about to lose their license because of complaints filed by consumers.
If you’re not able to borrow the money from a creditor, then perhaps you can get help from a friend or family member. Make the details of the agreement perfectly clear, and pay it back as promised. It is a bad idea to ruin a personal relationship if you can avoid it.
You need to look for certified counselors when you are selecting a debt consolidation agency. Check the agency out through the NFCC. This will ensure that you are dealing with a knowledgeable company that has employees who have the proper training and certification.
Everyone knows how stressful being in debt can be. But, if you just take some time to figure out what to do about the situation, you can get over it. The advice above will help guide you through debt consolidation.
Joan Holt is a writer and stylist with a passion for the intersection between biology, technology and design. Raised in Bali and of Swedish heritage, She travels across the world have encouraged and informed a global perspective regarding the future of fashion and its relationship to planetary health. She is currently working for a sustainable fashion label in Bali, Indonesia.