What Debt Solution is Right for Me?
In searching for a debt solution that’s right for your particular financial situation, it can be difficult to decide where to turn. There are countless credit counselors and debt settlement organizations out there, and it’s tough to sort out the good from the bad. To receive the best possible solution, there are a few things you should know.
Credit counselors typically work for nonprofit organizations and tend to provide free resources to help you manage your finances, deal with debt and plan for your financial future. An ordinary credit counseling session lasts around an hour, and it’s often advisable to schedule follow-up sessions to help ensure the success of any repayment plans you make.
Debt settlement companies are typically for-profit firms that charge a fee to help you manage specific financial obligations. Rather than creating a plan for dealing with debt, these companies usually work with debtors to reduce the amount you owe, allowing you to make lump sum payments on a lesser total amount.
There is significant danger associated with debt settlement. Companies often advise their clients to stop paying the majority of their debts and instead focus on paying off specific debts. It is in these companies’ interests that you only focus on these specific debts, as they can often work out a deal with creditors to reduce the total amount you owe. However, it typically results in clients falling into delinquency on other debts.
Many people opt for one of these two options after filing for bankruptcy, as bankruptcy has a limit on the degree to which it can alleviate personal debt.
There are many different types and degrees of debt, and each need to be handled in its own specific way. If you are struggling with financial woes, your first action should be to seek a trusted financial advisor and attorney in Georgia.