Debt Management Programs Can Be Extremely Risky If You Are Not In The Right Financial Situation To Be Successful.
Posted at by CreditWiz on category CreditYou’ve seen the commercials, you’ve called for debt advice, and you’ve agonized over your debt and decide that a debt management program is the answer to your debt problems. Signing up for a debt management plan will force all of your creditors to stop calling, will cut your payments and outstanding credit card debt by half, and make all your troubles disappear within 5 years. Or so the ads say.
When the bloom is off the rose however, a majority of consumers will realize that they made a very big mistake.
Typical Debt Management Programs will help you get debt free. You will have to file bankruptcy to do it, but who really bothers with the pesky details anyway?
There are several different types of Debt Management Programs. The one advertised the most is Credit Card Debt Settlement.
The controversy with many Debt Settlement Companies is that they over sell Credit Card Debt Settlement. The strategy itself can actually be very effective for consumers, but it should only be used in the right sets of circumstances.
Real Credit Card Debt Advice to help determine if Debt Settlement is the right choice for your situation.
1. You can no longer or barely afford to make your credit card payments.
2. You think that an interest rate reduction or a credit counseling program is not going to provide enough relief to solve the problem.
3. You have met with a bankruptcy attorney and discovered that you would not be able to file a chapter 7 bankruptcy.
4. You have a lump sum or will have enough money within a reasonable time (2 years) to settle your debts and satisfy your creditors.
5. You are informed that withholding payment from your creditors could result in a lawsuit.
6. Breaking the revolving debt trap is more important to you than preserving your credit rating.
7. You are mentally equipped to respond to creditor phone calls asking for money.
This is just some general Debt Advice to be aware of when checking out Debt Settlement or other Debt Management Programs. The reality is that every debtor should have an evaluation of their entire current and potential future financial circumstances. Things such as your age, your future earnings, your net worth, your retirement nest egg, your credit and so much more, need to be considered.
