Debt Counseling 101 - Things You Should Know About Debt Counseling But Was Afraid to Ask
Debt Counseling 101 - Things You Should Know About Debt Counseling But Was Afraid to Ask
Debt relief is what most people are searching for. From top notch politicians and celebrities to ordinary labor and industrial workers, everyone is looking for debt relief. Most people who are down with Credit card debt have been searching for debt relief. It is not surprising that this disease has affected the students too. Most students have been hit by Credit card debt.
One of the first steps in fighting debt is to go through a counseling session. Many non profit organizations run debt counseling sessions. What you may not know that the counseling agencies act as an interface between you and the creditors. They will help you to get over your inhibitions and get the best deal for you. So be frank and forthright when you go in for debt counseling.
Take the case of John, a civil engineer. He has been out of job for more than a year since the recession. He is finding it very difficult to handle his debt. After great difficulty he has found a new job that pays him okay. But he is on probation for the first six months. It is only after six months that he will be getting his enhanced salary. So how does John manage his debt for the next six months? The interest charges will pile up out of proportion till then. John is looking for an interest free period for the next six months in exchange for regular repayments thereafter. However he is apprehensive in asking the creditors to do so.
The counseling session is here to help John. The counselors will negotiate with the creditors and secure an interest free period for the next six months. They will also fix up regular repayment thereafter. This was one question that John was always afraid of asking. Debt counseling has come to his rescue. You too could benefit from debt counseling.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.