Debt Settlement Strategies
By Medha Roy
One of the most common social diseases remains dormant for a long time. And when
it raises its head, it reveals its monstrosity slowly. What is the social
malady? Think. More than a million Americans are affected by it. Yes, I am
talking of the ugly disease known as debt. Most of us don't think when we go on
a shopping spree. This happens more when we are armed by those devil-in-disguise
plastic cards, better known as credit cards. Credit cards are useful, but they
can easily ring the death-knell of all fun and frolic with their bills.
Once you incur debt, especially credit card debt, you have few options left to
redo your life. However, these options are highly effective. One of the best
methods to deal with enormous amounts of debt is to consolidate all your debts.
What is debt consolidation? When you incur multiple debts, all at high interest
rates and feel victimized by abusive creditor calls, contact the nearest and the
most reliable debt consolidation firm. How will you know it is reliable? If they
tell you they will eliminate all your debts in days in lieu of a hefty fee, step
out immediately. Further, they may give you a quote over the phone itself, even
before you have paid them a visit. These are indications of smooth-talking
Say, you have decided upon a debt consolidation company. Their first job is to
club multiple debts into one, slash high interest rates and make you pay only
one low monthly installment. Secondly, they step in between your creditors and
you. Creditors stop calling you once and for all. The debt consolidation experts
try to convince your creditors to reduce the interest rates charged. Some
creditors actually reduce your charges!
However, if you have hit the pit, debt consolidation may not be the right
solution for you. Don't lose heart. There are ways to take you out of this
misery. Say your financial condition is so poor that you cannot afford to pay
even the minimum payment required per month. Due to this, you fall out of the
debt consolidation program. What you enroll in is known as the debt settlement
Debt settlement strategies work differently. Your advisors in the debt
settlement program will force you to save money in your own bank account or in
one of their holding accounts. Meanwhile, they will talk to your creditors and
convince them to reduce your interest by 50% to 60%. Once that deal is settled,
the financial experts will start paying your creditors in batches. The
advantages of the debt settlement strategies are these. You don't need to starve
to pay the minimum monthly payment by neglecting any unforeseen emergency. Also,
you get time to save and change your lifestyle.
Ultimately, it is always wiser to avoid the debt trap. If you can manage your
finances in such a manner that you owe nothing to creditors, then you are the
smartest man alive! If you are thinking that can happen only in a utopian world,
you are highly mistaken. There are many who plan their finances in advance. Make
a budget for yourself and the whole family at the beginning of the month. Live
by it and swear by it. Don't buy things that you don't need. Don't buy stuff
just because your friends are buying it. Live life in your own terms. If you
can't resist the temptation of credit cards, hide them somewhere so that you
don't get to use them often. Carry cash; this will help you stay in control.
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