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Debt Management Agreements-The Pitfalls Comparing Debt Managements Services
Overwhelming debt is now a part of the American way of life, apparently. Too many people buy too much stuff that they can't afford and end up drowning in debt. The total amount of their monthly payments is more than the total amount of their monthly income.
Rather than seeking help right away, most people try to dig themselves out of the hole, but usually just end up making the hole deeper and deeper.
Finally, these people will come to the overdue realization that they need help, and they will start the process of finding a debt management service that can provide that relief for them.
It will very soon become apparent that there are more debt management service companies out there than they ever imagined. Each individual thinks that they are the only one who has ever been in this position. Boy, are they ever wrong!
Overwhelming debt in America has caused an explosion in the debt management industry. Choosing the right debt management company is more difficult than one ever could imagine.
First, most debt management companies provide consumer credit counseling free of charge. Not all of them do...but most. A credit counselor will discuss a debtor's finances with him in great detail.
The counselor will want to know about each and every debt that is owed, the date of the loan, the amount, and the balance on the loan. This will include every debt -- mortgage, car payments, utility bills, phone services, cable TV service...and of course, credit card debt.
Once the consumer credit counselor has gathered all of the information, he or she will make recommendations about how best the creditor can get control of his debts and how the company that the counselor works for can help. This is where fees are discussed.
See Also:
Manager Of Your Debts - Debt Management
| Debt Management and Collecting Your Debts Debt Management Debt Collectors
The Fair Debts Collection Practices Act sets guidelines about what debt collectors can and cannot do. You need to know the rules so you know when they have been broken.
If you have the unfortunate opportunity to deal with a debt collector, you need to know what your rights are and know the best and most effective way of dealing with one.
Debt collectors can call you on your home phone during business hours. They can call you until you tell them, in writing, to stop. Once you have given them written instructions to stop calling you, that does not erase the debt, but it will stop the phone calls.
Debt collectors cannot threaten you with bodily harm. They cannot misrepresent themselves as being associated with the government or with a credit reporting agency.
If you must deal with a debt collector, never assume that they will play fair or that they have your best interests at heart. They won't, and they don't.
Do not ever send post-dated checks, and never give a debt collector the right to draft payments from your bank account. These things can end up costing you more money and more trouble than you already have.
When you are negotiating with a debt collector, remember that you are dealing with a person who has been well schooled in the art of negotiation. They know more about it than you do.
Never give a debt collector personal information like where you work, what your income is, or your bank account information. They do not have the right to even ask you these questions. If they do, and you let them know that you are informed about the law, it will strengthen your position.
Nothing that you do when you are dealing with a debt collector will erase the debt. But knowing the law, and knowing what to say and what not to say, can keep you from more grief. |
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More articles:
Credit Card Debt Management Helps You Say Goodbye To Creditors
Credit Counseling and Debt Consolidation - CareOneCredit.com
The Debt Collector
Red flags you'll get a raw deal in a debt management plan - Jun. 17, 2002
Debt Management - Correcting the Course
| Taking Control with Debt Management Debt Management: The Controls
Managing debt is very much like driving a car. When you drive a car, you must know where you are going, keep your hands on the steering wheel, your eyes on the road ahead, look behind you, and watch your speed. That is the way that you control a car, and controlling debt is done in the very same way.
Know where you are going: You and your spouse or significant other need to sit down and define your financial goals so that everybody knows what the destination is. With specific goals in mind, the route to achieving them will be easier to define.
Keep your hands on the steering wheel: The steering wheel of debt management is the family budget. A clear allotment of funds will keep your financial life on the road and going in the right direction.
Keep your eyes on the road ahead: To avoid accidents, you need to be prepared to stop or take evasive action when driving a car. The same is true of debt management. You need to save first and spend second.
Look behind you: We always learn more from the mistakes we have made in the past, and we can learn from the things that we did right as well. Remember where you have been so that you can better see where you are going. Gauging progress inspires us all to do better.
Watch your speed: You don't want to try to go too fast when achieving your financial goals. You need to live well today, as well. But you don't want to poke along in the slow lane, either. Set a speed and stay in control of that speed. Save on a regular basis so that your goals may be achieved...but enjoy the trip, too. |
Related Topics: Debt Management When Starting a Business,
Good Debt Management Advice, Singing the Debt Management Blues
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