Avoid Questionable Free Debt Advice

“Free debt advice.” While this is surely one of the most widely advertised three-word phrases across different forms of media, it is also one that should be regarded with extreme caution. The volume of Americans who find themselves in dire straits has spawned a wide array of unreliable sources of debt relief counsel that play upon desperation to resolve personal financial problems. Consequently, there are an unending number of entities which claim to offer debt reduction advice at no cost. Many websites which claim to offer free advice in actuality refer web surfers to debt settlement options which have complex and extensive costs. Given the lack of accountability that exists among many of these groups and the dubious nature of many who advertise “free debt advice”, it’s important to know about recommended options.

Offering “free debt advice” is a useful tool for anyone who seeks to profit by working with or for debtors who are either facing delinquency or are currently in that state. Having attracted individuals eager for suggestions about how to tackle their debt, it is then easy for groups such as consolidation services, attorneys and debt management groups to advocate themselves as an ideal component in resolving financial troubles. This dynamic can direct debtors towards dangerous methods of debt repayment, such as the use of payday loans. Before seeking the services of such agencies, you should always examine yourself first. It is within your ability to remove yourself from debt if you identify the factors behind your unsatisfactory situation and measures you can personally take to address to problem at hand. Naturally, keeping your expenditure at sustainable levels so that you cover only necessary costs is essential to removing your debt, regardless of whether you hire a third party to take part in negotiations with your creditors. An important step that you can take is prioritizing your creditors because although fulfilling all obligations is a must, some lenders demand greater effort and larger payment on your part. For example, you may be in the process of determining how to deal with debt that includes your mortgage as well as smaller credit sources. Know what the consequences of falling behind on payments are in each scenario since different creditors will react in varying manners.

Ultimately, the best “free debt advice” will provide individuals with counsel as to how minimize the cost of regaining their financial independence. It is not possible to completely avoid repaying creditors and slashing budgets if you want to maintain a firm footing and prevent yourself from falling into further debt in the future.

Siddarth Nagaraj

Siddarth Nagaraj is a junior at the University of North Carolina-Chapel Hill. He is currently pursuing a double major in Global Studies and Political Science with a minor in Geography. Originally from Winston-Salem, North Carolina, he is interested in socioeconomic inequity and cultural diversity in developing nations. He is also a Section Editor for The Hill, UNC’s only nonpartisan political review, and has written multiple articles on international affairs for the quarterly publication.

Since the summer of 2010, he has volunteered as a Savings Officer for the Community Empowerment Fund (CEF) in Chapel Hill, which seeks to promote financial literacy and help fiscally strained individuals achieve self-sufficiency. Apart from writing, Siddarth enjoys reading, travel, and watching British television programs. Upon graduation, he plans to earn a graduate degree and seek employment in the field of international development.

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