Financial Strategies | Debt Reduction Demystified
When it comes to beginning the journey out of crushing debt
, many individuals have no idea where to start. The problem of negative credit can seem so overwhelming that it can seem as though there is no way out. Many men and women have heard of debt consolidation and debt reduction as a possible strategy for climbing out of debt, but they have questions that need to be answered before they place their trust in a consolidation program. Here are some simple answers to a number of the top questions people have about programs designed to eliminate debt.
Aren't These Programs a Con?
No. Consolidation and settlement programs offer a reliable and helpful means of recovering from a negative credit situation. Since the demand for these programs has spiked dramatically in the past few years, many charlatans have put their shingle on a proverbial door and promised to get people out of debt but have done nothing more than emptied their clients' bank accounts and disappeared. However, for every con artist in the field there are a large number of debt-relief organizations that are truly committed to getting you back on track toward a bright financial tomorrow.
TASC The Association of Settlement Companies, USOBA United States organization for Bankruptcy Alternatives, and Watchdog Organization like the Better Business Bureau (BBB) can help you to weed out the bad guys and select debt consolidation organizations that provide an honest service for reasonable rates. If your prospective debt-reduction agency has a shady history, the BBB will warn you away from them and steer you towards a company you can trust.
Why Do Consolidation Plans Claim to Reduce Debt?
Consolidation plans do not actually reduce debt what so ever, they only reduce interest and the time it takes to payoff the lenders. Debt Settlement however reduces the amount of debt owed by simply allowing the accounts go delinquent, and then settling them with the collection departments/agencies at pennies on the dollar. This process allows for a smaller monthly output, a much faster payoff with in less then four years, and of course being able to settle debts on average of around $.40 cents on the dollar plus fees.
What Happens After the Consolidation Process?
After you have executed your consolidation plan, there is still work to be done. A good consolidation program will not only get you out of a negative debt situation but will also support and educate you in order to help you build a sound financial plan with both short and long-term goals. Putting solid tools into the hands of individuals looking to plan a bright financial future. These tools are offered in the form of groundbreaking software that can help you to create a budget, clearly assess your financial holdings, set achievable financial goals and track your progress toward reaching them.
Contacting, is one stellar way to get the empowerment you need to pull yourself out of debt and work toward first becoming debt free and then becoming financially prosperous.
by: Nick Smith
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