Are you searching for the most convincing way to deal with a huge debt burden? You can approach credit counselling agencies for some relief.
They have several debt consolidation programs, most commonly known as debt management plans, to get you out of the trap you are in.
However, they can be detrimental if done through non-reputed organizations or for reasons that are not suitable to seek such help.
If you are looking for debt relief through debt consolidation options via some agencies, specific points need to be considered. Let’s have a look at some of those:
Always remember, it is a 3rd party payment portal.
These are all 3rd party systems that work with specific guidelines. You need to consider those carefully while also judging their market reputation before taking any call.
Before approaching an institute, you must read the reviews of top debt consolidation firms available. This would help gain some useful information related to the best options available.
Are you tired of dealing with different accounts?
With a suitable debt consolidation plan, you can make only a single payment to the assigned credit counselling agency. On the other hand, this agency will distribute the required money to every one of your creditors until the debts get entirely cleared.
This is often considered an excellent debt relief option to think about. These credit counselling agencies never play any role in settling debts or taking loans.
Instead, they have suitable arrangements with most of the leading financial institutions.
When repaying the debts with these credit counselling agencies’ help, you have to pay lower interest rates or fees.
This helps in letting your payment go more towards the balance rather than for any finance charges.
If you get linked to an agency that never offers any concessions, the whole benefit part on the tax redemption gets reduced. So, you must be careful while looking for a credit counselling agency.
All debt consolidation plans are more or less similar.
Analysts believe that every debt consolidation plan available in the market is the same. Financial institutes never give any preferential treatment to organizations based on their reputation.
Every organization is the same for any financial institution, be it a non-profit, an NGO or an MNC.
Agencies and employees may vary from one financial institution to another, but the plans remain the same. In short, every program is structured similarly.
It solely depends on your counsellor to determine how much it will charge you for clearing the debts to the creditors in full, within a specific time-frame (take it three years to 5 years).
The payment done is 2.5 per cent of the entire debt. However, in situations of severe hardships, there is room for wiggling.
You can stop the plan any time you want. At the same time, you can also pay more amounts to get out of the debt faster.
Do you think there is any other point to take note of in this regard? If yes, share your ideas with us.