Credible Debt Relief Companies are Usually the Quietest

One good way to help reduce your debt is to acquire the help of a debt relief company. However, this can be a daunting task. There are many companies out there that charge excessive fees or do not do enough to help fix your debt. This article will help you determine how to pick out the right kind of debt relief company for you.There are two main types of debt relief companies. The first type helps you with debt management, in which you meet with the credit counseling agency and work with your creditors to potentially reduce your minimum payments or improve your interest rates with an understanding that you will pay the full debt over time. The other type will work with your creditors to eliminate the debt now.

While the second type may sound better, the problem is that you may have to take out a loan backed by collateral to pay off the debt now. Sometimes you may even have to sell the collateral to pay off the debt to “eliminate” it. In either option, odds are that you will have to pay off the full value of the debt, unlike Chapter 7 bankruptcy.

The benefit of using a debt relief company is that they will save you more money than you could save on your own by negotiating with your creditors by yourself. However, you have to be sure that you find a well-qualified debt relief company – usually one that has been in the business for a long time and has a lot of contacts – and make sure it fits your budget. You do not want to pay a lot of money to a company – especially one that may not save you very much money!

Bankruptcy is a permanent process, and even though it will eliminate your debt, it will negatively affect your credit score. You may be better off meeting with a good debt relief company to determine whether bankruptcy, debt management, or debt elimination is best for you.

Graham Billings

Graham Billings

Graham Billings is a senior at the University of North Carolina at Chapel Hill with a double major in Economics and Political Science. He plans to graduate in December of 2009 and then attend law school in the fall of 2010. He is a member of the Economics Club at Carolina, which brings in speakers and hosts events in order to discuss current economic issues and help those who do not have a background in economics become more familiar with it. He is a National Merit Scholar and Dean’s List recipient. He is originally from Greensboro, North Carolina and attended the Early College at Guilford for high school, taking classes at Guilford College. In addition to economics, his academic interests include the legal and political system. He headed the only student-run, high school-level Honor Court in high school and participated in a national model Congress in San Francisco, run by Harvard students, and won awards of excellence for his work on the mock Supreme Court. Additionally, he tutors Carolina students in economics on a volunteer basis.
Graham Billings

Latest posts by Graham Billings (see all)