Till 2005, bankruptcy was the only available door for borrowers who could not repay their unsecured debts in time. The court decides what to do and how to repay the balance with a title of social sigma bankruptcy on the head. The bankruptcy remain almost 7 years in the credit report and almost for 4 years he cannot take out fresh finance, not even unsecured loans.
How debt relief services have changed the debt problem scenario?
Situation has certainly changed post 2005. Debt relief services are in boom and certain debt settlement companies are really active in USA for any debt solutions. If one is struggling with significant loans for bad credit, and can’t figure out a payment plan with lenders on his own then he shall think about calling a debt relief service like credit counseling or debt settlement. Depending on the debt problem one has, advices are provided on how to deal with increasing debts or create a plan for repaying creditors.
How does Federal Trade Commission (FTC) assist?
Federal Trade Commission (FTC) free advices are really helpful in such situation. Before one goes for any debt relief service, one shall check with state Attorney General and local consumer protection agency. They can guide candidates if any consumer complaints are on file about the debt settlement company. State Attorney General can also guide them if debt settlement company require to be licensed to work in the state and, if so, whether it is obtained.
How does homework help to debtors?
If one is really looking for best possible solutions from debt settlement company then he will have to work home as well especially what exactly require from his side. Debt counselors like to listen to the problems of debtors and take actions accordingly. If debtors go without home work they might become victim of standardized solutions offer from debt settlement company.
One of the services offered by debt settlement company under debt relief services is credit counseling. The counseling hour typically last for an hour and can cover discussion of problem, providing solution, designing a consumer specific repayment plan and further assistance. The counseling can be to mass or person specific as well.
Debt management and debt settlement programs
These two programs are offered by for-profit organizations working in USA. They typically involve debt experts who take up the whole case scenario in their hand and deal with creditors to minimize the debt through negotiation. Their skill and experience to deal with creditors is something one cannot achieve individually. These programs are generally recommended when one enrolls in debt counseling. One has to choose though which the better solutions are for him.
One shall definitely read the terms and conditions before signing such programs because the financial situation and control will be with experts. If experts make mistakes or could not solve the debt problem, the consequences will have to be undergone by none other than borrower himself. They attract fees so that also require a second thought.