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Debt Relief: Difference between revisions
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Credit card agencies such as Visa, Discover, MasterCard, and American Express have departments that provide essentially the same services as debt consolidation and debt management companies; however, debt reduction and credit counseling are entirely different functions than what the credit card companies do best. Credit card companies typically prefer their card holders use specialized debt consolidation firms to help with debt consolidation. These firms take on a substantial burden of individual repayment agreements and terms as well as attendant paperwork. MasterCard for example, prefers their card holders use a debt management service. Therefore, Mastercard does not advertise a debt management department within their company. The Mastercard consolidations department will respond to requests for debt consolidation if a written request from the card holder is made to the proper department. | Credit card agencies such as Visa, Discover, MasterCard, and American Express have departments that provide essentially the same services as debt consolidation and debt management companies; however, debt reduction and credit counseling are entirely different functions than what the credit card companies do best. Credit card companies typically prefer their card holders use specialized debt consolidation firms to help with debt consolidation. These firms take on a substantial burden of individual repayment agreements and terms as well as attendant paperwork. MasterCard for example, prefers their card holders use a debt management service. Therefore, Mastercard does not advertise a debt management department within their company. The Mastercard consolidations department will respond to requests for debt consolidation if a written request from the card holder is made to the proper department. | ||
Although trying to set up a debt management plan using services available through the various credit card companies may prove | Although trying to set up a debt management plan using services available through the various credit card companies may prove d | ||
ifficult, the small fees and inconvenience associated with debt management companies may be avoided. | |||
PBS' Frontline aired a comprehensive report on 11/23/04 named [[Debt Relief:Bibliography#Special Report | The History of the Credit Card]]. The report gives an indepth look at the credit card business and common practices unknown to many of us. | PBS' Frontline aired a comprehensive report on 11/23/04 named [[Debt Relief:Bibliography#Special Report | The History of the Credit Card]]. The report gives an indepth look at the credit card business and common practices unknown to many of us. | ||
When the topic of debt management and relief comes up, consolidation is usually one of the words that follows. Many experts agree that debt consolidation is a good idea when it seems a person is getting too deep in debt. Three things to consider before deciding on debt consolidation: | |||
# Evaluate where you stand with your debts. | |||
# Don't wait until you are in over your head. | |||
# Be sure to understand how debt consolidation truly works.(Morris, 103) | |||
Numerous experts also agree that a nonprofit company is the best way to go for premium terms. Also, no matter if they are for-profit or nonprofit, one should gain as much information as possible about the company before dealing with them. Futhermore, ensuring the institution you choose works with your creditors. Checking their status with the Better Business Bureau is a great idea. (Brown, 326)However, there are many different opinions on how to go about this. One common opinion is that only school loans should be consolidated, and this is only because of the enormous necessity of a college education. (Orman, 149) | |||
==Credit Harrassment== | ==Credit Harrassment== | ||