Ways a Debt Consultant Helps You Get Out of Debt
Having a debt consultant work with you to get out of debt can save you a lot of money and get your debt paid off a lot faster. They have strategies for reducing debt on credit cards, medical bills and any other unsecured debt you may have.
Where to Find a Debt Consultant
Debt consultants are found at debt relief companies. You can search the Internet to find reputable debt relief companies and they will assign a debt consultant to you to go over your financial situation.
Debt Reduction Programs
The top three debt reduction programs that are available are debt management, debt settlement and debt consolidation. Each of these programs is a great way to reduce debt and to
pay off debt quickly. You may need to talk with more than one consultant to find which of the programs will work
best in your situation and meet all of your financial needs.
The debt management, or credit counseling, program objective is to reduce the interest rate on your debt and reduce your monthly payments. Your debt consultant will send your information to your creditors and get from them your repayment plan.
Many times your creditor will reduce or stop the interest charges entirely for of the typical five years you will be in this debt management plan allowing you to get paid off quicker. When the debt management plan is designed for all of your creditors, you will then make only one payment per month to the debt management company. They will write the monthly payment checks to your creditors out of those funds.
Debt settlement is a plan where your debt consultant offers a lump sum payment to your creditor to pay off your debt immediately. The payment amount that they offer is at a fraction of what you owe.
Most of the time your creditor will accept this reduced amount as payment in full because they fear you will file for bankruptcy or otherwise will not be able to make any payments. If you file for bankruptcy then your debt to them may be discharged and the creditor will receive no money.
A debt consolidation plan is when you take out a low interest loan to pay off all of your debt. This is particularly helpful with credit card debt because the interest is so high on those cards. It is also very helpful if you have had your wages garnished, have collection agencies calling you or are facing a law suit over debt.
By paying off all of your creditors at once it stops a lot of problems immediately. You then have only one monthly payment and that is to repay your consolidation loan.
Strategies Debt Consultants Use Help Pay off Your Debt
Using a debt consultant can greatly reduce the amount of time it takes to pay off your debt. Using a debt settlement, debt consolidation or debt management program can make life a lot easier for you, free up your cash flow so that you can live easier and get your debt paid off quicker.