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Debt Relief: Difference between revisions
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==Debt Management== | ==Debt Management== | ||
'''Debt Management''' is the process by which debts are consolidated into one '''lower monthly payment'''. This '''one payment''' | '''Debt Management''' is the process by which debts are consolidated into one '''lower monthly payment'''. This '''one payment''' is an amount clients '''can afford''' and that is apportioned amongst their creditors. The payments made go directly to creditors on a client's behalf. | ||
Credit counseling and debt management agencies | An [[Debt Relief: Interview#Interview | Interview]] conducted with a local agency on the issue of debt management summed up some important for anyone seeking help managing their credit. Here is a summary of the information gathered up from the meeting: | ||
Credit counseling and debt management agencies offer professional help to individuals in need of assistance in paying off their debts. These agencies look at the client's bills, listen to their needs, make recommendations, and create budgets. Although these companies have received bad press in the past, researching before selecting a company can assure you of their safety. In your search make sure your choice is accredited with an institution, such as the Better Business Bureau. Also a debtor must make sure to look at state laws, so that he/she is not overcharged for financial help. | |||
The steps most of these agencies take to help debtors eliminate debt are: | The steps most of these agencies take to help debtors eliminate debt are: | ||
1) | 1) Helpin debtors to assess their debt situation. | ||
2) Avoiding overspending and handling existing debts are other areas consultants help debtors with. | 2) Avoiding overspending and handling existing debts are other areas consultants help debtors with. | ||
3) | 3) Helping the client to build and maintain good credit. | ||
Most financial advisors agree that the most important step a person must take before seeking counsel is to change | Most financial advisors agree that the most important step a person must take before seeking counsel is to change their money management skills. The debtor must change the way he/she thinks. They must rid themselves of all financial anxieties or debt will probably accumulate again. | ||
==Managing Your Credit== | ==Managing Your Credit== | ||