It eliminates the higher interest debts and allows you to make an affordable monthly payment. A friendly and knowledgeable debt counselor will guide you through the process from signing the contract to the moment you’re completely debt-free. Avoid getting sued over your debts Individual consumers often don’t know what options are available to them and don’t know how to work with creditors to get through debt.
What are the drawbacks of a debt relief program?
With negotiated terms and lower interest rates, most people with a debt management plan pay their debts within three to five years. Since you must be in arrears on your debts to get debt settled, these late payments contribute to a drop in your credit rating. With many DMPs, the goal is to fully repay your debt within three to five years, which is easier when interest is lower every month. If you need help paying off debts, consider the pros and cons of debt settlement, as well as a few other debt management strategies.
What are the advantages and disadvantages of debt relief?
These nonprofit organizations offer free credit counseling sessions that include a budget assessment, online, over the phone or in person. In this post, we will therefore focus primarily on the advantages and disadvantages of each type of professional debt relief. For one thing, many debt settlement fraudsters prey on people who owe debts by charging excessive fees or by committing outright fraud. It’s important to consider the pros and cons of debt consolidation before choosing a program.
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Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.