|
|
|
Last Updated: Jul 2nd, 2008 - 21:15:22 |
(NAPSI)-If your debts cause you to stress out and lose sleep, you may have a debt problem. Fortunately, help is available.
One option is to negotiate directly with your creditors to ask them to lower your interest rates. This solution may work for some but it requires self-confidence and self-discipline. Ask yourself if you want to conduct such difficult, time-consuming negotiations alone.
Another option is to consolidate existing debts and mortgage payment into one, larger mortgage payment through the use of a home-equity loan. When you use your assets to satisfy credit card debts, it may leave little or nothing for emergencies. If you fall behind on payments, you could lose your home.
Another choice is to contact a nonprofit credit counseling organization. These firms generally offer free consultations during which they study your debt situation, and a certified credit counselor can help develop options to fit your specific needs.
Credit counselors can:
• Create a budget and identify areas where you can reduce your expenses.
• Refer you to partners with the resources to help with other debt problems, such as student loans and mortgage struggles.
• Structure a Debt Management Program (DMP) that can help you pay down your debts more affordably and quickly. In creating a DMP, your counselor will negotiate with creditors to secure lower interest rates and consolidate payments into a low, single monthly payment. You pay the agency, which then pays each creditor.
Your counselor can help eliminate late and over-limit fees, which can decrease your amount of debt, and develop a plan to help pay down your debt within three to five years.
The counselor works directly with creditors and provides you with education, guidance and motivation to stick with your plan.
According to experts at InCharge Debt Solutions, people with serious debt problems often think about filing for bankruptcy, but it should be the last resort. Bankruptcy is a court action that stops lawsuits and any other attempts by creditors or collection agencies to collect from you. However, it generally stays on your credit report for 10 years, and can prevent you from qualifying for loans or getting a particular job.
For free credit counseling, call 877-599-0082.
|
© Copyright by Eveningsnews.com
Top of Page
|
|
|
|
