debt management company Archives - Arizona Debt Consolidation Quote

With the economy shaky, unemployment on the rise and high costs of living, it is no surprise that many individuals and families find themselves drowning in debt. Outstanding credit card bills, missed mortgage payments and overdue utility bills can affect your life and that of your family. The only way to regain your peace of mind is to get out from under debt and get into the positive. The first step to getting out of debt is to get effective debt management advice.

Why Get Debt Management Advice?

A lot of people in debt are often embarrassed to admit to being in trouble and are hesitant to get help. Sometimes ego can get in the way of getting help as well. But, the fact is that there is a lot of advice out there that can point you in the right direction and ensure that you are on your way to being clear out of debt. There are several registered and qualified advisors who can offer debt reduction advice tailored to your unique situation and lifestyle. Here’s why you should take that first step and get some debt management advice:

What You Don’t Know Can Help You:

Getting debt reduction advice from debt reduction specialists can show you alternatives to debt reduction- show you avenues that you did not even know existed.

Stitch in Time:

With every day that you spend in debt, your debt builds- high interest rates and minimum payments that only cover the interest add exponentially to already existing debt. So, the sooner you get help with repaying your debt, the less you have to pay back.

It Can’t All Be Legal:

Sometimes, it gets very tempting to borrow from John to pay Larry and really the vicious cycle never ends. But, debt reduction specialists can ensure that all the advice they give you is completely legal and actually pays down your debt instead of recycling it.

Under Control:

Debt reduction specialists can help you consolidate your debt so that you have only one manageable monthly payment to make instead of keeping track of several creditors and bills.

Future Credit:

Many people who are in debt believe that they will be ineligible for future credit if they approach debt management agencies. This is, in fact, a myth- you will be eligible for future credit and debt management advice can direct you to minimize damage to your credit and show you how to secure future loans.

Who to Approach?

There are several resources that you can approach to get the best debt management advice for your situation. Consider all the available options and pick the resource that fits you the best.

Financial Consultants:

There are several professional and qualified financial consultants who have the tools to offer you sound advice and build a plan for you to get out of debt. A financial consultant can advise you keeping the law and your financial situation in mind. Their advice is a little expensive, but they stick with you till you are out of debt and it is completely confidential.

Banks/Financial Institutions:

Your bank probably has a more comprehensive view of your financial picture and can give you more thorough, fact-based advice to manage your debt effectively. In addition, talking to banks and financial institutions are also in a position to offer you solutions like loans to address debt management. What may be different about banks is that they can offer you advice and offer you products to get out of debt, with no fees attached. This does not mean that you are getting free advice though- if you subscribe to the bank’s new product, they earn from your interest and by improving your credit they gain a stable customer.

Debt Counselling:

Debt counsellors are qualified to provide you with solid debt management advice – not only about debt consolidation but also advice on how to prevent future debt. Debt counselling is beneficial as it not only offers financial advice, but also behavioral advice on future financial actions. Debt counselling is low in fees and are sometimes even non-profit, providing you with the best advice in the most cost-effective way possible.

Online Forums:

With cyber-age at its peak now, literally anything can be found online- including financial advice. There are several credible financial analysts and organizations offering some great advice out there in cyberspace. What’s more- it’s free! But, be wary of the advice you adopt and make sure that it comes from credible sources. Also, this is by far, the most self-driven form of debt management advice available. Unlike debt counselling or financial advisors, you will have no active support in your debt consolidation journey. While the advice is available online, it is up to you to make it work for you- implement plans, remain disciplined and be motivated to get out of debt.

With debt consolidation becoming a priority in many economies, there are several avenues out there to get out of debt. Be sure to get the advice right for you, your personality and lifestyle.

Debt management is a legitimate debt relief option but you have to realize that there are companies giving them a bad name. Recently, there are two debt relief companies in Tampa that made the headlines because they are being investigated by the State Attorney General. These companies are giving the whole industry a negative reputation which affects the confidence of the consumers that should be benefiting from it.

The reality is, while there are sincere companies who wish to help struggling Americans get out of debt, there are those who only wish to fool others. They come under the pretense of concern, charge upfront fees then run away with the hard earned money of the hard working consumer. It is impossible to get rid of all of them so what every consumer should do is to know the signs that distinguishes the legitimate companies from the not.

To help you, here are the signs that will indicate that you are dealing with the wrong debt management company.

We’ve actually mentioned the first already and that is upfront fees. If the company is asking a deposit before they do anything, you have to run as far away from them. No legitimate company will ask this from you because the government strictly prohibits it. So anyone who is brave enough to ask this, you can assume that there is something fishy about them. Fees can only be charged if there is proof that the company was able to accomplish what was agreed upon during the contract signing.

You should also scrutinize the advertisements of every company that you deal with. For instance, a debt management company should never promise to lower your interest rate because this is never a guarantee. Perhaps the only guarantee is a lower monthly payment once the creditor agrees to the debt management plan that will be presented to them. This plan should be according to what your funds can afford.

During your first meeting with the company, be wary if they are proposing a solution even before they have seen your finances. Do not let them force you into a program if they haven’t even analyzed your debt problem.

You should also ask for a complete list of the charges that will be asked from you and when they should take effect. Hidden charges are also not allowed. Do not agree to pay any fees that was not discussed previously. It has to be very transparent.

Speaking of transparency, the process involved will have to be clear as well. The debt counselor should discuss it with you so you can decide if that is the type of program that you want to be involved in.

It is important that you familiarize yourself with the Telemarketing Sales Rule (TSR). All of the points that we discussed previously can be found in this law. It is implemented by the Federal Trade Commission or FTC. In fact, any complaints that you may have against any company can be filed to them.

And while you are at it, read about the other debt related laws like the FDCPA or Fair Debt Collection Practices Act. Knowledge will be your best asset against your debt problems and abusive companies so do your research well to know the rights protecting you.

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