Consumer Debt Relief Services – What Are the Pros and Cons?

When you’re in trouble, it’s easy to get overwhelmed with debt and not know where to turn. Many people are seeking some kind of debt relief help, but they don’t know where to start. There are two options available to you: you can hire an expensive debt relief company in Albuquerque to help you resolve your debt problems; or, you can educate yourself on debt management so that you better understand your debt situation. If you’re currently facing financial troubles and struggling to pay your debt, then you have come to the right place to get the facts and start your debt relief journey.

If you’re looking for help, one option is debt relief counseling. Many debt relief companies offer free debt relief counseling sessions to potential clients. If you’re considering credit card debt reduction, a good credit card counseling agency may be able to provide you with a credit card debt reduction plan. Credit card counseling agencies usually offer the same services as other credit card counseling agencies. They will evaluate your situation and help you create a realistic budget.

If you have a job and are financially stable, debt relief counseling may be a good alternative for you to consider. Some agencies offer their services to clients who are unemployed, self employed, or have been laid off. These non-profit agencies also offer credit card debt reduction services for clients who are unable to pay their credit cards. The credit card counselor will evaluate your financial situation, help you develop a workable budget, and offer debt management advice.

Credit counselors at debt relief services are certified professionals who are expected to offer sound financial advice to their clients. Debt relief services are not the same as debt consolidation loans. If you choose this debt relief option, you’ll make one payment to the debt relief agency and they will distribute the funds to each of your creditors according to a payment schedule you set up.

The main advantage to using non-profit debt relief services is that you will only make one single payment per month to the agency instead of making multiple payments to your creditors. This will save both time and money. To make a quick assessment, let’s assume you owe money to five creditors and your monthly income is approximately two-months worth. Your total debt consists of fifty dollars in unpaid credit card debt, forty dollars in delinquent taxes, and three-hundred dollars in miscellaneous debt such as store cards, travel cards, and CD’s.

Based on your unique situation, your debt relief counselor can come up with a debt reduction solution that works for you. Your counselor will sit with you and discuss your options. Depending on your unique circumstances, your debt relief counselor can help you develop a debt management plan (DMP), which will require that you make one monthly payment, along with other small payments, to the agency. The goal of the DMP is to permanently eliminate your debt. However, your debt relief agency will hold the final say as to how the money is spent.