Finding Legitimate Debt Help

 

 

If you’re drowning in debt, your situation may seem hopeless. Minimum payments may be more than you can afford, and creditors may call your home to collect late payments. You ignore creditor correspondences in order to maintain your sanity. This is a bad situation to be in. But hiding from your debt will not make it disappear. If anything, this will aggravate your creditors and prompt legal action.

Even if you haven’t defaulted on your bills, keeping up with monthly payments can create a financial burden. But after looking at your debt balances, and then evaluating your take-home pay, you may have few options.

However, you do not have to live with high debt balances forever. Many people have successfully paid off their credit cards and other loans by working with a company that specializes in debt resolution.

Trusting your finances to a company can be frightening. And if you’ve heard or read horror stories about debt management companies, this may add to your fears. There are, however, plenty of reputable companies available, each with trained representatives who are ready to help you resolve debt.

If you decide to work with a company, you can avoid a lot of headaches by simply doing your research and choosing the right company.

For example, you shouldn’t trust a company simply because they have a lot of ads on the television or radio. It is best to contact companies and speak with a representative. This is your opportunity to inquire about available services. Does the company offer debt consolidation, debt settlement, credit counseling or all three? Additionally, you should inquire as to whether the company offers financial management, budgeting advice and other money-related education.

You also need to ask about fees. Some debt resolution companies are non-profit and do not charge their customers a service fee. However, for-profit companies will likely charge a service fee, which they’ll tack onto your monthly payments. It’s okay to work with a company that charges, as long as you’re comfortable with this monthly fee.

To avoid issues with a particular company, always check reviews. Contacting your state’s Attorney General’s office or the Better Business Bureau can shed light on a company’s reputation. Here, you can find any unresolved complaints against a particular company, pending lawsuits and other negative items.

Additionally, you should research real customer reviews online. You want to deal with a company that’s professional and one that treats its customers with respect. There are a lot of misconceptions about people who have a ton of debt. They are sometimes viewed as irresponsible with money, shopaholics or lazy. And if a debt resolution company holds this view, the reps may not show you the proper respect.

“The customer is king,” says Calvary Portfolio Services. The company you choose should feel the same way about you. They should not only offer viable solutions to your debt problems, but demonstrate that they’re happy to build a long term relationship and guide you through this difficult time.

Too much debt impacts your pocket and your credit score. With a damaged score, it is harder to get a cellphone, low-rate insurance and even certain jobs. But if you’re proactive, recognize your limits and work with a professional, you can get from under the mountain and fix your finances.