Information on how to manage your debt and get your life in order

Debt Management Consultants - How to avoid a con artist

Choosing a debt management consultant is not as easy as it may seem.  Unfortunately there are ruthless people who will take your money with a smile.  These people have no morals and only care about fattening their wallet.  They may position themselves as your friend, but they are a friend you don’t need.

The best way to get a person to help you with your debt problem is to get a referral from someone you trust.  Perhaps you know someone who suffered from the burden of debt and has recovered.  Maybe you could have a cup of coffee with them and discuss the experience they had with their consultant.

Beware of just picking someone randomly or from an ad on the internet.  They may take all your credit information including your social security number and do unscrupulous things with the information.  So instead of helping you with your debt they may in fact be hurting you.  Be skeptical and ask for references.  Then contact those references and ask them how their experience was.

    • June 14th, 2007 | No comments

    Debt Management Consultants – Do you have a Serious Debt Problem?

    It’s hard to know exactly when you have a serious debt problem, but we will look at some situations that will clue you in to the fact that you do have a problem.  First if the amount you have to pay for monthly minimum credit card payment is greater than 15% of your take home pay you have a serious problem.  Second if you are delinquent in your revolving accounts this is a sign of a serious problem.  If you have maxed out all of your credit card limits, this is a sign of a serious problem.

     

    If you have indeed maxed out all of your credit limits it lowers your credit score, and in turn will increase the interest rates if you go to refinance your mortgage.  If you take advances to pay off your credit card, this is a sign you have a serious debt problem.  Every time you take a cash advance from one of your credit card companies you are charged a fee and the interest rate is usually astronomical   You are essentially shifting your debt from one credit card company to the next.  The unfortunate thing is the cycle is very hard to break.

     

    You want to avoid the debt snowball effect where you keep transferring your expenses to the future by opening new credit card accounts, and taking advances from them to pay off your old account.  At some point the amount of accounts you have open will be unmanageable.  At this point even a debt management consultant may struggle to get you back to a successful financial path.

    • October 24th, 2006 | No comments

    Debt Management Consultants - Should you Consolidate all your Loans

    Do you have loans from several different sources? Perhaps you have credit car loans, car loans, student loans, and a mortgage.  Well it might make sense to consolidate all the loans.  There are several worksheets and computer programs that will help you make that decision.  Alternatively a loan consultant may be able to give you a more personal touch to help you make the decision.  It may be easier than you think.  A consultant can steer you toward a low-rate credit card that has a grace period for balance transfers.  This could give you the extra time you need do make payments, and avoid the high APR that you were paying with your old card.  The goal is to decrease the interest rates that you pay, and thus make your life easier.

    While you could search the internet for the best credit card deals a specialist will save you time and may have the connections you need to make obtaining that card a reality.  Many things in life are about connections and the personal touch that gets things done.

    • October 23rd, 2006 | No comments

    Debt Management Consultants – How to get Help

    At some point you have to get over your embarrassment, and seek outside help.  Yes it is a big hurdle but you have to admit defeat and make the first phone call.  Most debt management consultants will be glad to give you some initial information over the phone.  However a consultation in their office may offer the greatest value.  A face to face meeting, always seems to get better results.  You put more trust into what you are being told if you have a face associated with the voice.

     

    If you have a spouse it is a good idea to make the appointment with them as well.  Remember you are in this together.  Getting out of debt will require a lot of work and you need the support of your partner.  If one of you starts slacking off you have the other to give you a gentle reminder of where you were and where you want to be.  To finally get feeling of relief when finally your debt is under control.

     

    The first appointment is always going to be the hardest as you don’t know what to expect.  But you will soon realize that your fears are unjustified.  There is nothing to be afraid of and your financial situation can only get better.  Take the first step and get some recommendations for qualified debt management consultants.  You could always start with the yellow pages, but a personal referral is always the most powerful.  The internet also provides some information about how to choose a consultant.

    • October 22nd, 2006 | No comments

    Debt Management Consultants - The First Step to Recovery

    So you’re drowning in debt, and don’t know where to turn.  We’ve all been there at one time in our life unless you were born with a silver spoon in your mouth.  (The lucky few)  I’d like to offer some advise over the next several weeks, as I was able to work my way out of such a mess in my life.  I want to offer a path to freedom from those annoying phone calls so you can move on with your life.  You will no longer have to hide every time the phone rings, or cringe every time the mailman pulls up to your house.

    The path won’t be easy but there are steps that you can take to reduce your debt, and bring back your sanity.  The first thing you must realize and come to terms with is the fact that you need help.  And understand the easiest thing to do is ask for help.  But don’t ask the wrong people, ask an expert.  You need someone with a proven track record of success.  Generally friends and family are not the answer, as you don’t want to burden them with any more of your troubles, as I’m sure they too cringe every time you call them.

    There are highly trained debt management consultants that can help you.  No it won’t be for free, but the fees you will be paying them will be much less than the interest you get nailed for every month from your “friendly” credit card company.  I’ll look into some ways to find a debt management consultant that can work with you.  The key is to find someone who understands your situation and will work with you at your own pace.  No you won’t be debt free tomorrow, it will take some time and effort.  But believe me there is light at the end of the tunnel.  A huge weight will be lifted from your chest once you feel the freedom of being debt free.

    • October 21st, 2006 | No comments