Credit Card Debts. How Debt Counseling Can Help You
Credit card debts affect your reputation. When an executive of the credit card company visits you or calls you over phone to pressurize you to make payments, you can not remain calm and composed. Your eyes will express the language of your aggrieved heart. If you think that you can not tackle this problem on your own, you can seek the help of professional debt counselors. The options available to you are debt consolidation, debt settlement and debt management. You can also choose a self-repayment plan.
These debt counselors should be furnished with all your debt details so that they will assess your situation and come out with their solution. They will check whether any of the above three options can be applied to your situation. By tying up your situation with the best possible option, they will ensure you become free from credit card debts.
If you are offered the solution of debt consolidation, you will be having a single debt instead of having multiple debts on a number of cards. Therefore, a single payment should be made every month. This debt consolidation will come with a much lower rate of interest and you will not feel the strain of making the monthly payment also. The duration is fixed to suit your financial situation. Some financial institutions offer a secured debt consolidation loan also and this makes available to you a bigger loan at a low rate of interest.
Choosing debt settlement means that you should have money readily available with you. You can pay off 40 to 60% of the total loans and settle them. Though you can negotiate on your own, experienced debt counselors will be able to get you a better deal. Very rarely, a few companies agree to take the settlement amount in installments.
In debt management, you need to have several sessions of negotiations with the credit card companies and come to an agreement over the repayment plan. You may get the benefit of lowered interest rates. You can also try for waiving the late fees that are usually levied by credit card companies.
If you opt to choose a self-repayment plan, details such as your income, your monthly expenses and your repayment capacity should be taken into account so that you can negotiate with the credit card companies and arrive at a mutually acceptable repayment schedule. But, there should not be any defaults once such a schedule is agreed upon. When you are negotiating the self-repayment plan on your own, you are not involving any debt counselor.
You have a debt relief network from which you can get the information about reputed counseling companies. By taking the help of a reputed counselor, you can come out of your credit card debts and lead a happy life.
More by this Author
Many people believe that running can help them lose weight. But after trying for two or three weeks, they quit and start apprehending the effectiveness of running in reducing their weight.
Kids nowadays face the threat of cyber-bullying. Every cyber-bullying situation is different but there are certain general tips that can be useful for helping these children overcome the effects.
Many parents do not know how to handle bored kids. They do not also realize that this gives them an opportunity to unlock the creative genius of these children. This hub provides a few tips.
No comments yet.