State Debts: State Debts Isn’t Difficult Anymore
Chances are that you have acquired a number of credit cards in the past and made unrestricted spending, which has let to piles of pending payments resulting in a mountain of debts. And unfortunately, your finances have give you the red signal and you are no longer able to pay off all your debts, putting you in a position where you get regular calls from your debtors, day in day out, causing a tremendous amount of stress and disrupting at large your normal day-to-day life. You want to get rid of your debts, but you cannot- because of one or the other reason.
If you want to get rid of your pending debts, there are three main things to consider— debt counseling, debt management and debt settlement. That said, debt management and debt counseling may seem like almost the same things, but are not. Either of these three options can help you pay off your debts, depending on whichever solution best fits your case.
Now, to have a clearer picture of what these options have in store for you, let’s analyze them one by one. We will start with debt management as it is the most popular option among people who are ridden with debt.
Debt management is usually for people who have fallen a little bit behind and are having a hard time paying their bills and want to catch up. This option can also be for those people who are not sure of how to manage their money. The decision of what bills to pay and where to cut back can be troublesome at times. The working process of a debt management plan is rather simple. You hire a management company to take care of your finances for you, and to catch up on your late payments. And in return, you give them a big portion or all of your paycheck. They look at your expenses and decide which debts to allocate the money towards and how much.
The debt management company will also take into consideration your needs for living expenses. A good debt management company will always take care of all the work for you and will assure that your debts are paid on time. But, you should know that most debt management programs charge a fee and there are some bad debt management companies too. Some debt management companies will want you to use consolidation as a technique that will need you to borrow the same amount of money as you have as debt, although at a lower interest. Keep in mind that a good debt management company will always help you get out of debt, and not create more.
Your second option is debt counseling. It can be utilized for a few reasons. Most people don’t fall into the first category, but there are some individuals who just don’t know how to manage money. A good debt counseling program can teach someone how to manage their finances and get back on track. Debt counseling can also be used for someone who’s fallen behind on their bills and just needs a good plan to get caught up. A good debt counseling advisor should be able to take your income compared to your debt and come up with a plan that will show you where you need to budget your money.
The best thing about debt counseling is that a good debt counseling program will not take too long to come up with a plan, and is less expensive compared to the other options. However, there are some bad debt counseling programs and can end up taking way too long to come up with a plan and can prove to be quite expensive. Such programs are best avoided.
The third option is debt settlement. This is the option to go for when a person has too much debt and doesn’t have the monetary means to pay it off and is looking for creditors to relinquish some of their debt. Most people in this situation have fallen behind on their debts, and have thought about filing for bankruptcy. The good news is a lot of creditors will still be willing to work with you. The bad news is most people don’t know how to deal with creditors and end up hiring a debt settlement company.
Most debt settlement programs don’t work— either they will take too long to settle your case, or they will charge an outrageous amount in fees. Some debt settlement programs can take up to 5 years and can charge as much as $15,000 or more in fees. However, most creditors won’t not wait that long a time before taking action to collect. No matter what you’ve heard, the laws on bankruptcy have changed and most people will have to set up a payment plan with their credit debt companies. The only thing you can do is protect what credit you have left.
State Debts is a blog on debts, and the ways that can help you get rid of your debts in due time. This blog is managed by a panel of debt experts who intended to provide the reader with debt advice to help them get rid of their debts. So, if you are debt ridden and want to get out of the sinkhole, the articles in this blog can help you manifolds. There are debt advice for almost everyone; from how to pay off your debts, to what options do you have to pay off your debts efficiently… State Debts covers it all. Rest assured, you won’t no more be in a dilemma after going through the information available on State Debts.