Do you think it is a good idea to get debt relief help? Or can you do it by yourself?
One report revealed almost 3 out of 10 successfully lowered or eliminated their debts with the use of a debt consolidation loan. This is one of the debt relief programs that you can do on your own. Those who used a debt consolidation loan said that they felt like it was a good choice for them.
But the thing is, not everyone is qualified to use a loan to consolidate debt. First of all, you need a good credit score to get a good interest rate and terms on the loan. You should also have a stable job to prove that you can pay the loan back. Unless you can get a low-rate or better terms, consolidating the debt through a loan will not benefit you.
This is why some people opt to get debt relief help instead of trying to work things out on their own.
Benefits of getting debt relief help
There are several benefits to getting help from a debt professional. Even if you can do a DIY debt consolidation, there are times when your life is just too busy. The overwhelming tasks and responsibilities might make you lose focus as you try to get out of debt on your own. Without enough time, you might end up breezing through the selection process – only to end up with the wrong debt solution. While all the debt relief programs are effective, there is one that is the perfect fit for your specific financial situation. If you cannot find that, you might end up having a harder time getting out of debt.
This is one of the reasons why debt relief help can be very beneficial. To be specific, getting professional help with your debt situation brings these three things.
New perspective about debt
First of all, it gives you a fresh perspective on your debt situation. Sometimes, debt can make you feel disoriented because of all the stress that it brings. It can also come with feelings of frustration, discouragement, and anxiety. All these negative emotions can affect how you view your debts. In most cases, it could make you feel like your debt is overwhelming. That it is too much for you to pay off. This makes the debt relief journey harder to do.
But if you get debt relief help, the professional can give you a new perspective about your debt situation. This perspective will not be colored by emotions and will remain objective. They are detached from the situation so they are most likely to analyze it with a clear head. Of course, their expertise is a plus. This allows them to create a realistic plan that is more effective than what your stressed-out brain can think of. This increases the chance of you completing the debt relief program to achieve debt freedom.
Personalized debt relief plan
In the previous point, we mentioned getting debt relief help will give you a realistic plan. This is also a plan that is specific to your debt and financial situation. When you talk to the debt expert, they will analyze your current financial position. They will also discuss with you the different credit accounts that you owe. This information will allow them to gauge your debt payment requirements and your ability to meet each one. It is what they will use to customize a repayment plan for you. This ensures that the plan is affordable.
But the repayment plan is not the only thing that you will get. The debt expert will also educate you on how to budget your money well. They will tell you what you are possibly doing wrong. Most of the time, they will help you create a budget plan that is aligned with your repayment plan. That should help organize your finances as you pay off your debts.
Guidance throughout the debt relief journey
Finally, getting debt relief help will give you the guidance that you need to complete the debt solution that you have chosen. Some people will just stay with the debt expert until after the plan is provided. Then they will follow the program on their own. But this will require them to exert discipline and self-control. They also have to allot time to monitor their debt relief progress.
If you cannot do that, you are better off sticking with the debt relief professional. They can provide you with the support system that you need to succeed in achieving debt freedom. Sometimes, all you need to succeed is to have someone encouraging you and motivating you throughout the whole debt relief program.
Important rules when getting debt relief help
While it is beneficial to get debt relief help, there are a couple of rules that you need to follow. This will ensure that you will maximize the benefits.
Here are the rules that you should implement to assure debt freedom.
Research your options properly
There are so many organizations offering debt relief help. The challenge is finding the one that will give you the specific type of assistance that you need. Credit counselors will educate you on your debt relief options and provide you with relevant debt relief information. You can also rely on them to organize your debts and create a plan that will help you consolidate your debts – but that is a different service that oftentimes requires a service fee. There are debt arbitrators who specialize in negotiating with creditors and lenders to help you get a debt reduction. Make sure you get the right help so you can also reach your financial goals.
Conduct due diligence
When you have found the debt relief help that you want to avail, conduct proper due diligence. Unfortunately, there are a lot of scammers out there. You need to be careful about where you will get help. Make sure that the debt expert is legitimate and will not scam you out of your money. These people will just make things worse.
So make sure you do your research. Scrutinize what is on their website. Does it contain real contact information? Are they members of well-known organizations like the American Fair Credit Council (AFCC)? If not, that should be a red flag. And if they ask for upfront fees, that is a big no-no in the rules and regulations for debt relief companies. Take the time to know your rights so you can spot the legitimate debt relief help from the not.
Make sure you identify the root cause
It is also important for you to identify what is causing your debts in the first place. No matter how good the debt relief help is if you do not solve the root problem, you will still end up in debt. For instance, overspending is a root cause of debt. Just like the holiday spending that added more than $41 billion in credit card debt. This could have been avoided if you only prepare for the holiday expenses. You know that you will spend a lot. And you also know when it will happen. Why not just save up for the expense? That way, you do not have to borrow money. You can start the year with no additional debt.
Consider the reason why you have a debt situation and consult with the debt expert you are working with about what you do. They might have suggestions on how you can avoid too much debt in the future.
Commit to the debt relief plan
Finally, you have to make a commitment to complete the debt relief plan that was created for you. Otherwise, all the efforts of the debt relief expert will be for nothing. And if you paid for that service, you just wasted more money. If you really want to get out of debt and you fully understand the explanation about the repayment plan, just stick to it. Include it in your budget plan so you can fund it monthly.