Many people want help with debt assistance when they find themselves unable to make all of the monthly minimum payments on their credit cards and other bills. Often people think that debt assistance will help to lower their payments and relieve them of their debt. People will go to credit counseling services to receive debt assistance as well.
It is important to realize that there is no easy solution to fix your debt problem. Paying off your debt or declaring bankruptcy is the only way to get rid of debt. Bankruptcy has a lasting negative effect on your credit score. It can cripple you in many ways and should only be considered as a last resort. Additionally, credit-counseling services also leave a negative mark on your credit score. They may not help you to address the problems that led to your debt in the first place. Many are not legitimate and you should be very careful if you choose to use a credit counseling service.
The best thing you can do is to help yourself get out of debt. This is the only way to solve the problem for the long term. You need to begin by following a monthly budget where you spend less than you make each month. Then you need to set up a debt payment plan, and apply extra payments to your debts one at a time until you have paid off all of your debts. If you are disciplined you will be surprised at how quickly you can get out of debt.
Debt consolidation loans are also difficult, because while they may lower your interest rate or your monthly debt payment you do not address the spending problems that led to the debt in the first place. Many people who do debt consolidation loans find themselves owing even more money in the future.
If you feel that you need a financial expert or additional advice on how to budget your money and get out of debt, consider visiting a financial planner. There are financial planners that specialize in helping you budget, and form a long-term plan with getting out of debt and then investing and saving your money. These planners usually charge by the hour, but it may give you the extra help that you need to get back on track. This type of planner is generally not associated with a credit counseling service.
If you have old debts or debts that you are behind on, you may consider trying to settle the debts with the company. To do this you will need to save up an amount to offer them to accept as settlement. When they do this, a credit card company will forgive the rest of the debt. You should receive this agreement in writing before you send the money. Additionally you will be responsible for paying taxes on the money that was forgiven at the end of the year.
You may also consider joining a financial support group or taking a class such as though offered by Dave Ramsey. Groups like this will focus on giving encouragement and creating a plan to help you get out of debt. This may provide additional motivation if you are serious about getting out of debt.