It is the aim of every person in debt to become debt free in the least possible time.
Collection calls, piling bills for payment and low credit score keeps a man in low esteem.
A customer tries all tricks available to come out of the current debt situation.
Right from speaking to the debtors himself, taking debt consultation to hiring debt Settlement Company all comes under his preview.
Some basic steps to handle a debt situation effectively- 1.
Listing of monthly income Vs monthly expenses.
The customer should be able to match his income to his expenses and say no to any extra expenses.
2.
Say no to credit card expenses.
Any expense relating to the credit card should completely control.
Replace the credit card with debit card.
3.
Creation of emergency fund.
Credit cards are used when cash is not handy.
Emergency fund should be created at home and in the bank so that cards are used the least.
4.
Take help of debt management programme.
Debt management programmes are designed according to the need of the customer.
The customer needs to explain his situation to benefit out of it.
5.
Settlement companies: For customers who are already under high debt need professional help from settlement companies who can negotiate on his behalf and lower down the debt bill by at least 40-60%.
How to locate the most respected Settlement Company.
Before signing up a settlement company the customer should shop around and find out about companies with good track record.
Ask friends, relatives and check on line for customer complains.
The debt settlement company should be accredited by United States organization for Bankruptcy alternative or The Association of Settlement Companies.
This accreditation shows that the company is aware of all the rules and regulations with regard to debt settlement and has been evaluated by a central body.
The settlement company needs to be certified by IAPDA to assure the customer regarding superior skills of debt settlement.