A lot of people prefer to deal with their debts on their own. They might have various reasons like not wanting to payfor the attorney serviceor being sure they can handle the situation or even not wanting to accept they do have debt problems at all.
However there are cases when the experienced attorney of the debt reduction service might appear to be quite helpful.
7 main reasons to use debt reduction services:
- You get the professional help granted from any errors or misguidance.
- Due to the experience of the attorney you can get better results than in case you’re negotiating on your own.
- You get the attorney-client business relationship, which means the representative of debt reduction service company will act in your interest.
- After enrolling the program you will automatically get protected by Fair Debt Collections Practices Act.
- Some company might not negotiate with you at all; however they will most likely accept the offer from the licensed attorney.
- The attorney will not only deal with your case. He will also be your private consultant in the field of debt reduction.
- All the letters concerning your debt settlement will be totally accurate.
The usage of debt reduction services is totally legal action, so you can consider it as the way to reduce your debts and pay them off faster. If you’re not sure the program can really be helpful for you, consult the debt consolidation agency for further information.
If you decided to use debt reduction services, follow these 5 main steps:
1) Check your debts and evaluate them
Look through your credit reports in order to figure out your current financial state with your debt-to-pay and your average income. Write down your current financial balance as well as the amount of monthly payment for each debt. Do not mention your loans with relatively long term (like mortgage). If at the end you appear to be having the unbearable debt covering most part of your income, it might be the right time to turn to agency for the professional help.
2) Write out your budget
Now take your time to calculate your monthly budget. Put your income as debit and your monthly regular expenses as credit. By subtracting one amount from the other you can see how much you have left for your debt payments. If the amount is not enough, try to reduce your spending.
3) Plan your finances
After you get the clear picture of your financial state, it’s the right time to create the plan in order to reduce your debts. Deduct your monthly expenses and minimal debt payments from your income and define the credit with highest balance you’re going to invest the remained money to. Follow this scheme month after month, moving from one debt to another, closing them one by one. Monitor your progress in order to gain some confidence in your financial future.
After you started closing your debts, consider your possible options to speed up the process. Contact your creditors and negotiate with them about lowering your interest rate or making some debt settlement. You will most likelysucceed in negotiating any of the dismissed debts which are already passed to the collectors. You can also get a chance of fast pay-off by obtaining 0% interest rate for 6 or 12 months. To keep your credit score intact do not let your card balance go below 35% of the given credit limit.
5) Never give up
Keep your attention on your financial goal all the time. This will hold you from unnecessary spending and guarantee you following the plan. Keep going and soon you will become debt free.