Many struggle to get out off debt. Some people just can’t keep up with it and over a period of time without a tested action plan at their disposal, may add more to their debt. And finally when they seek assistance, it is often too late to recover and they may have to file for bankruptcy. If you are in such a place and just don’t know where to start from, you may opt for debt relief options. There are a lot of negative rumors about seeking help on managing your credit by some counselor; it is due to the fact that there are many scammers out there to fish. But I would like to share certain experiences of Michelle, who after signing up for Freedom Debt Relief program has been able to walk free from the clutches of credit card debt.

Michelle is a very old friend of mine and last time when we met, she had mentioned to me that she was under a lot of financial stress. She was paying as much as she could toward her credit card debts yet the balances would just not go down. I met her recently and found her to be very relaxed so just could not stop myself from asking what happened to her debts. She told me that she received a call few days back from FDR to tell about her first full settlement for the card with the largest balance.

Michelle told me how her credit counselors helped her to establish a plan and develop a budget to tame expenses and prevent from adding more to the existing debt. As credit counselors are qualified and certified in consumer credit and budgeting, in no time they developed a personalized tailor-made plan for her to follow. This stopped the debts from growing and at the same time freed up some money to pay off the debt. As the primary goal of debt relief plans is to reduce debt, counselors will negotiate with your creditors on your behalf and will try to lower your debt. During this time you are required to follow the relief plan and the monthly payment program made by them and deposit into an account opened with the Settlement Company. Most credit card companies ask for lump sum amount to recoup some of the losses. So once the deal is negotiated, you can expect to achieve these benefits:-

The amount owed may be reduced which will help in managing monthly payments. Your creditors may change the status of your account and make it current, once you are enrolled in a debt relief program. A settlement will remove interests on the outstanding balance and the fees along with the over limit fees thereby making payments more affordable.

Though the flip side is your credit score will be affected while the negotiation process is on as you are required to stop payment to the credit card company and pay into an account opened with the debt relief program. There are many debt relief options which your counselor may choose from according to the situation you are in. Other options are balance transfer, debt consolidation loan or cashing out on the equity on your home.

Be careful in choosing the right credit counseling service to work with. It is important that you do some research before you get involved. It is advised that you check the reputation and how long they have been doing this. Beware of over- the-top promises like instant deletion or settlement in few months. With the help of a credit counselor you may be able to eliminate a huge debt but this will happen over a period, depending on your situation. You must be given a written contract that states all your rights and obligations.

Research and do your homework and take your step to get debt free, it is very much possible.

Author Bio: Freedom Debt Relief

Category: Finances
Keywords: Freedom Debt Relief