Debt Counseling - Pros and Cons
Debt Counseling - Pros and Cons
Pros:
You are showing your creditors that you are serious about alleviating your predicament. They will work with you and your debt counselor to reach a mutual agreement.
Debt restructuring will be done with your remaining income, after deducting your basic essentials, such as transport, food, clothing, rent, utility bills, etc.
While under 'debt review' your creditors cannot institute legal proceedings against you for debt repayments. A debt distribution agency will handle your 1 monthly payment for distribution to all your creditors.
If a creditor did not do the necessary checks to ascertain that you earn enough money to repay your debt, they could be charged with reckless lending and that particular debt might even be scrapped.
After debt counseling your credit record is 'wiped clean', allowing you to qualify for credit in the future. If you file for bankruptcy your credit history will count against you in future applications.
You will have no more sleepless nights, stress and a lack of concentration at work.
You will learn how to budget and be a better steward of your finances, which will aid you long after debt counseling.
Cons:
While under debt review you are forbidden from applying or receiving any new credit or an extension of an existing credit. This will lead to cancellation of your debt review.
Your basic living expenses will have to be reduced drastically. E.g. Lower your transport and leisure costs.
Debt counseling fees will be charged, but these are incorporated into the first 2 months under debt review. Explore North Devon: Coast to Country Future Payment Or Lump Sum Cash Now - What Is The Right Choice For You? The Whole Story Of Buying Contacts Online watch live Minnesota Vikings vs Green Bay Packers NFL week-7 online tv link Platinum And Titanium Are Used For Wedding Ring Sets Acquiring The Beautiful Flower Girl Basket For Your Litttle Lady Four Reasons To Explain Why Buying Discount Perfume Online Is Beneficial Advice For Those Who Want To Make Money Online Various Information Made Specifically Husbands And Wifes Executives And Guests In Stealing Great Val Purchase Your Kauai Island En Suite Hotel Rooms And Enjoy A Perfect Holiday This Year If You Want Hot Weather and Beautiful Water Head to Spain Choosing a Mini Hair Straightener How To Select the Appropriate Homeowners Insurance Policy in New Jersey