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Know more about Debt Management Companies

By Ruth Racey
Published: Wednesday, June 2nd, 2010

A lot of people find themselves in this position. The bills have piled up, loan after loan, credit card after credit card, and now we can’t even make the minimum payments. We are drowning in a sea of debt with no life preserver. We don’t know what to do or who to turn to. If you find this is you and you have no clue where to start, consider contacting a debt management company.

So, what is a debt management company? These are companies who employ and train employees that are financial experts and specialists. These employees are trained to tackle any financial problem you bring them, from the smallest to the largest. So don’t feel hopeless and like you have too much debt for anyone to help you. It isn’t true. These companies help people like you every day.

These debt counsellors will provide you with options for managing your debt and give you advice on what is the best solution for you and your financial situation. They will show you there are other ways besides bankruptcy to save your financial future.

They can teach you valuable things like how to budget yourself so that you are living within your means and not accumulating more debt upon what you are already carrying. They will tell you straight up to stop getting more credit, if you can even get more credit at this point. They will help you make a budget and demand you stick to it. They do not help people that cannot help themselves, like shopaholics.  They may even suggest you take up a second job or work freelance in something you are good at, so that you can make extra money to start paying down all the money you owe.

Another thing they often do is sit you down with your creditors, face to face, and negotiate with them on a payment schedule and plan that will make both parties happy. They may even be able to get your creditors to reduce or eliminate your interest on the promise you will pay off your principle debt fast.

Another option they have to help you is debt consolidation. This is where they take all your debts and turn them into one big debt. This will result in you only having one larger monthly payment to worry about which means only one set of interest rates and fees to worry about, interest fees that are usually lower after consolidation as well.

So if you find yourself in this position, contact a financial counsellor, they will show you that they are worth their fee.

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