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Free vs Paid Debt Management Services Debt Management Agreements: The Pitfalls
Credit counseling is not a very well-regulated industry today. In the past, credit counseling was operated more like a social service rather than as a business designed to make a profit.
The industry was known by the general term CCCS (Consumer Credit Counseling Service) and operated under the general guidelines of the NFCC (National Foundation for Credit Counseling).
The lay of the credit counseling landscape has changed. As more and more consumers find themselves deeper and deeper in unsecured debt (think credit cards), more and more for profit credit counseling services have sprung up. Some of these services are very good and very fair, but be aware that not all of them are.
Some credit counseling services are good, others are bad, and then there are those that are just evil.
1. The debt management service that you choose should be a member of the BBB (Better Business Bureau). You can check with the BBB to see if the company has a good record and if there have been any complaints filed by others. Membership in the NFCC (National Foundation for Credit Counseling) or AICCA (Association of Independent Consumer Credit Counseling Agencies) is also acceptable.
2. If the debt management service promises you that it will take 20 minutes or less to solve all the financial problems, you need to run as fast as you can. They are referring to THEIR financial problems and not yours. It takes time and effort by a debt management service to help with your financial problems and get you the best deals possible.
3. Be certain that the debt management company can help with all of your unsecured debt and don't just deal with a few companies. Half a fix is often worse than no fix at all.
See Also:
Debt Management - Correcting the Course
| Debt Management and Family Crisis Debt Management and Health
There aren't many things in life more stressful than having bills due that you cannot pay, a mail box full of second, third, and final notices, and bill collectors calling day and night.
Stress itself is a health issue and can also cause many other health issues. Financial health has a direct connection to physical and emotional health. Financial problems lead to relationship problems which lead to emotional, mental, and physical health problems. Controlling your financial life is important not just from a financial standpoint, but from the relationship and health standpoints, as well.
Of course, I am not suggesting that you can avoid every health problem, all stress, or that your relationships will flourish if you just stay in control and manage your debt well. I am saying that you can avoid a lot of unnecessary grief by making a plan and managing your debt in order to prevent stress and all of the problems that stress can and does cause.
Make a plan -- think budget. Take control of your financial situation. A written plan takes the pressure off. You don't have to remember things. You simply use your budget and your financial plan.
Pay your bills on time and in full each and every month. When you conduct your financial life in a well-planned and responsible manner, you will find that other areas of your life become better organized and better functioning as well.
It isn't easy to take control in midstream, so to speak, but it can be done. The first step to relieving some stress in your life is to find a budget form on the Internet or in a brick-and-mortar store. Follow the directions that will be provided.
As you take control, you will relieve your stress and improve your physical, mental, and emotional health as well as your financial health. |
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| Debt Management Correcting the Course Debt Management through Bankruptcy
Bankruptcy is a last resort! It should never even be considered as an option until all other options of debt relief have been completely exhausted -- at least not for us ordinary mortals.
If you do find yourself in the position of having to declare bankruptcy, you will be in some pretty good company. Donald Trump, Burt Reynolds, Walt Disney, Wayne Newton, George Jones, MC Hammer, and Johnny Unitas are just a few of the very famous people who have had to declare bankruptcy and then been able to get on with their lives.
It isn't the end of the world. You will survive!
Bankruptcy laws have changed. There was a time when filing bankruptcy erased all debts but that really is no longer the case. You need a lawyer to guide you through the bankruptcy process. Some of your assets are protected even today, and without a good lawyer in your corner, you can be fooled into thinking that they are not protected.
Don't take the chance. If you must file for bankruptcy, get a good bankruptcy lawyer in your corner so that you come out on the other side in as good shape as possible.
Don't listen to hearsay and rumors. You need facts...good concrete information. A lawyer who specializes in bankruptcy can get you the very best settlements that are possible. The harassing phone calls will stop immediately.
Yes, you will lose most of your assets through bankruptcy, but you will be getting a clean slate. Contrary to popular opinion, it is sometimes easier to get loans and credit cards after bankruptcy than it was prior to the bankruptcy.
You will have to start over, so to speak, after bankruptcy, but that doesn't necessarily mean starting from zero. You can retain many of your assets if you have the right legal counsel. |
Related Topics: Cleaning Up Past Debt Management Mistakes,
Debt Management and Consumer Counseling, Taking Control with Debt Management
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