With the unemployment rate and consumer debt continuing to rise, the number of people seeking credit counseling services, enrolling in debt management programs or filing for bankruptcies is on the increase.
You may think that those who are jobless and can’t pay the bills are the ones who are keeping the phone lines ringing at credit counseling agencies across the nation. Well, not really. People who are still working but are caught in a debt spiral and unable to pay next month’s bills are also calling for help.
If you are on the verge of bankruptcy and you badly need to avoid filing for bankruptcy, make an appointment with a certified counselor from a reputable credit counseling company and let him help you review your financial situation.
A good credit counselor will take time to review your unsecured debt, such as credit cards, medical bills and personal loans, and secured debt, such as mortgages and car loans, as well as household expenses and personal income to find the best debt relief option that works best for you to pay off your debt.
Make sure you avoid debt management counselor who promises to enroll you in a debt management plan in less than 20 minutes! Remember, the less time spent with you, the less a credit counselor works in your best interest.
Most of the time, you don’t need a bankruptcy. There are debt relief programs such as debt consolidation, debt management programs or debt settlement plans to get you out of debt without declaring bankruptcy.
A debt management program, be it non-profit or for-profit, is designed to help you restructure your multiple payments into one smaller monthly payment that you can afford after your credit counselor negotiates with your creditors and establishes a debt repayment program.
The smaller monthly payment allows you to make the payments and not go into further debt or into bankruptcy.
You can be debt free with a debt management program without the terrible blemish of a bankruptcy on your record.
Note: I am a credit card debt woman who has been in a free debt management program since October 2008 and have felt the benefits of debt management program, so it’s easy for me to share with you about DMP more than debt consolidation and debt settlement plans.
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