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Getting Control of Debt Management 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.
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| Good Debt Management Advice 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:
Debt Management and Collecting Your Debts
Debt Management Is a Family Affair
Credit Counseling and Debt Consolidation - CareOneCredit.com
Credit Card Debt Management Helps You Say Goodbye To Creditors
Budgeting & Debt Management | TBayCounselling.com
| Debt Consolidation Loans-Yes or No 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 Correcting the Course,
Debt Management and Consumer Counseling, Debt Management Makes a Comeback
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