Feb 9 2012
Credit Card Debt Advice – Are Debt Management Programs A Good Way To Go?.
You’ve seen the ads, you’ve called for debt advice, and you’ve pondered this thing 6 ways to Sunday and decide that a debt management program is the answer to your debt problems. Moving forward with a debt management program will force all of your creditors to stop calling, will cut your payments and outstanding debt by 50%, and magically erase your debt within 5 years. Or so we think.
When reality sets in, a majority of consumers will realize that they made a very big mistake.
The majority of Debt Management Programs will help you wipe out your debt. You will have to file bankruptcy to do it, but who really bothers with the fine print anyway?
There are a handful of different types of Debt Management Programs. The one that seems to be the most popular is Credit Card Debt Settlement.
The issue with most Debt Settlement Companies is that they over sell Credit Card Debt Settlement. The strategy itself can actually be very effective for consumers, but it should only be used in the right sets of circumstances.
Seasoned Credit Card Debt Advice to help figure out if Debt Settlement is the right choice for your situation.
1. You can no longer afford to make monthly minimum credit card payments.
2. You think that lowering your interest rate in a credit counseling program is not going to solve the problem.
3. You sat down with a bankruptcy lawyer and determined that you would be unable to file a chapter 7 bankruptcy.
4. You have access to a lump sum or will be able to save up enough money to settle your debts and satisfy your creditors.
5. You are aware that withholding payment from your creditors could possibly result in a lawsuit.
6. Getting rid of your debt is a higher priority to you than preserving your credit rating.
7. You are ready to respond to creditor phone calls asking you to pay on your debts.
This is just some general Debt Advice to be aware of when exploring Debt Settlement or other Debt Management Programs. The reality is that every person should have an evaluation of their overall current and potential future financial situation. Your age, your earning potential, your net worth, your retirement plans, your future credit needs and much more, need to be considered.
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