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Places that can offer you debt management help

By Ruth Racey
Published: Saturday, May 22nd, 2010

Are you facing a serious financial crisis? Are the bills just mounting one on top of the other and do you feel like you have no where to run? Well, you just need some debt management help. But before we begin, you must realize that there is no easy way out of this. You can sort out your debts for the time being, but you realize that there is something fundamentally wrong with your habits which are causing all the debt in the first place.

There are a number of ways to seek debt management help. If you realize that you will not be able to pay up on your credit account, then the first thing to do will be to contact the creditor. This way you will ensure that there is no adverse affect on your credit history. Contact them and try to renegotiate the terms of payment. At the end of the day you will be paying more than you had to, but at least it will not show up on your credit report.

But if the credit agency has already given up on you, then you will have to deal with the debt collectors. Now these people are not contract killers, so firstly stop sweating. They are regulated by the government and cannot do illegal things to you. For example they are not allowed to call you before 8AM or after 9PM, they cannot call you at office if they are aware that your boss does not approve of it, and they are supposed to stop pursuing the case if you ask them to. But if you want to maintain a healthy credit report, you must prevent the case from going to the debt collectors in the first place.

But you must be aware that a lot of your property can be repossessed if you default on your loan. But this is only for those loans that are attached to a property, or in other words you might have given something as surety when you took the loan. This could include your car, your home or even any gold jewellery etc. this is known as collateral. But if the loan is like a credit card loan which has no collateral, then the only way the creditor can back the money owed is by suing you.

But in this case, you can always file for bankruptcy if your case is really bad. But make sure you change your ways by seeking debt management help and start afresh after you recover from the crisis.

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