When you find yourself overwhelmed by the amount of money you owe to creditors and lenders, to the point where your financial future is in serious jeopardy, it might be a good idea to seek out professional financial help. You might not realize it, but with the right financial advice and representation, there’s a very good chance that you could get your debt reduced to manageable proportions. Professional debt reduction programs can help guide you through the process of negotiating a debt settlement with your creditors and getting your life back on the right financial track.
Why would creditors be willing to negotiate and lower your debt? They don’t want you to go bankrupt. When you declare bankruptcy, your creditors don’t get to collect anything. This is why they’d rather settle and reduce your debt, as getting some of what you owe is better than getting nothing at all. Of course, the process is an involved and difficult one. By enlisting a professional debt reduction service, you can ensure that the whole ordeal goes by faster, with more efficiency and with better results for you.
Debt reduction companies will work to negotiate with your creditors directly so that you don’t have to. No more having to deal with multiple payments or constant collection calls. With a good debt reduction program, a professional advisor will help you come up with a concise short-term and long-term debt reduction plan. To help you get started, DebtReliefCompanies.net offers a wide range of informational articles on debt reduction help and the various kinds of debt reduction services available. You can also get free debt relief company reports by filling out our FREE REPORT form on the right to ensure that you get a trustworthy and reliable debt negotiation service that fits your needs.
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Scott : February 12, 2007 2:19 pm : Debt Reduction Services
In choosing a reliable debt relief company, you first need to understand what debt relief options are available to you. Your chioices largely depend on the type of debt that you have and the amount you owe. I suggest that if you are unsure, go to my simple debt relief options grid or watch my debt relief information video to get a better understanding.
Once you have reviewed your choices and you understand the options available to you, you need to evaluate the companies closely. Unfortunately the debt relief industry is largely under-regulated in many states so you must be aware of the right questions to ask.
1. How long have they been in business?
2. How many clients do they have?
3. How is customer service handled?
4. Is all the debt reduction work done in-house or do they use 3rd party companies?
5. When you make you 1 monthly payment, who holds and manages your money?
6. Do they have access to lawyers in those rare cases where it may be needed?
7. Do you have a dedicated account representative?
8. What percentage of their clients complete the program?
These are some important questions to ask. You must understand that becoming debt free is a process and that the company you choose must be right for you. You need to be comfortable with their answers and realize that your decision will be one that you will make for the long term.
I have evaluated many companies and I provide free advice as to which companies I believe are reliable. You can follow these links to learn more about debt settlement companies and debt management companies but understand that you still need to do your own evaluation and form your own opinion as I do not know the specifics of your situation or your needs. The most important thing is that you educate yourself.
Scott : February 2, 2007 2:36 pm : Debt Reduction Services
In theory most lawyers can help you however, you will best off going to one who actually specializes in legal debt settlement services. Providing this type of service requires unique challenges and specialization which debt settlement companies are set up especially for.
In particular, a company or law firm that provides debt settlement services is in regular contact with the large creditors so they have the established negotiation relationships that you benefit from. A law firm that does not have these relationships may make the process less smooth for you.
Furthermore, you are likely to have lots of ongoing questions as you work your way through the 18-36 month legal debt settlement process so easy access to an account representative will be crucial. Lawyers without a customer service department for debt settlement clients may be difficult to get a hold of for small questions as their time is valuable (and expensive!). You will need this.
In addition, debt settlement companies have tailored their fee structure to make their services obtainable for people with severe financial difficulties with payments often spread out over a long period of time. A typical lawyer who charges by the hour will likely cost you much more than you save unless they are set up to specialize in providing legal debt settlement services.
Scott : January 30, 2007 12:22 pm : Debt Reduction Services
That depends…Your options for debt reduction varies depending on your situation. If you have significant equity in your home, you may be able to refinance and pay off your credit card debts avoiding the debt reduction negotiation process altogether. However, that is not really true debt reduction since you are just transfering the debt balance from one source to another (your home mortgage). Regardless, it is the preferred method due to the fact that your credit score will remain basically unharmed and you will be trading high interest rate debt with low interest rate debt, thereby lowering your overall monthly payments.
Debt management and debt settlement programs both can take years to complete. Why? Because it is a process by which you go on a scheduled plan to reduce your debt little by little. The speed at which you become debt free is based 100% on your ability to generate income. Assuming your income is relatively fixed as it is for most people, these companies will customize a payment plan for you that you can afford.
Debt reduction using a negotiation company will typically last 18-36 month while a debt management company program can last from 12 months to 5 years. It all depends on you, the amount of debt you have, who your creditors are, and your ability to stick with the payment plans they set up for you.
Scott : January 15, 2007 9:11 am : Debt Reduction Services
The best way to reduce debts like credit cards if you cannot find a way to pay it off by effective budgeting and sound financial discipline is to use a debt settlement company who has established relationships with all the major creditors (credit card companies, department store charge card companies, etc). They work with people who find themselves over their head and need a reduction in debt to get back on their feet. The process involves a negotiation between the debt settlement company (on your behalf) and your creditors.
For example, a debt settlement company will go to Citibank and say “we have $400,000 in debt that all our clients owe you – what type of reduced deal can you give us?” That has a lot more impact on Citibank than someone going to Citibank and saying “Hello. My name is Jane Doe and I owe you $6,000 – will you cut me a deal and reduce that? Pretty please….” Not the same impact. A good debt settlement company will have enough clients that they can use that leverage to get better negotiation terms with large creditors resulting in greater debt reductions for their clients.
For this reason, in my opinion you are best served by using one of the large established debt settlement companies that you can trust to guide you through the process.