Friday, May 15, 2009

Debt relief...journey towards debt free life.

In my last post I discussed about the self repayment plan as an effective plan to pay of your debt and I said that if you are not able to analyze your situation then you can go for Debt relief program with the help of a professional which I will be discussing now.

To understand Debt relief program fully some concepts needs to be cleared like-Debt consolidation, debt counseling, debt management, debt settlement, in order to manage your finance.

1.Debt counseling-When you will go for a debt counseling agency they will study your financial condition and then instruct you and teach you how to improve your debt situation and to maintain your financial strength. They will educate you maintain your budget and stick to it, how to cut down your extra expenses and how to control it.

2.Debt management-In this plan all your finances will be taken care by a professionals agent and accountant, the agent will look after all your budgets ,spending, credit card payment, bills ,loan payment etc, and will help you and assist you how to control your finance.

3.Debt negotiation-In this process your agent will negotiate with your creditors and will come to an agreed amount of debt to be paid with a new repayment plan which suits your budget in this process your debt can be reduced upto 60% cutting off your excessive interest rate, administrative fees etc. They will also manage your payment.

4.Debt settlement-This process involves legal counseling and is normally used when there is a chance of legal action to be taken or if there is a threat of using legal action being issued. The whole process may involve settlement in court or outside the court with your creditors and aid of professional lawyer.

5.Debt consolidation-with a debt consolidation program you can pay all of your outstanding payment in a single monthly payment with the help of debt consolidation agency the agency professionals after a brief study and analyzing your financial situation will negotiate with your creditors on behalf of you and help in repaying your debt.

But before going for any debt relief program go for a thorough market research and then decide which suits you the best. Go for the best debt relief program to clear your debt smoothly without any stress………………Best of luck.

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