#Freedom debt relief vs national debt relief full#
Debt management plans help reduce outstanding, unsecured debts at a reduced level over a fixed period of time to help regain control of finances.ĭebt settlement programs typically are offered by for-profit companies and negotiate with your creditors to allow you to pay a "settlement" to resolve your debt - a lump sum that is less than the full amount that you owe. These services require the collection of money you pay the debt management company and then the company pays the creditor on your behalf. These types of companies create debt management plans that are individually tailored based on what can be realistically afforded on a monthly basis. In fact, some credit counseling organizations charge high fees, which they may hide, or urge their clients to make "voluntary" contributions that can cause more debt. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.īut be aware that "non-profit" status doesn't guarantee that services are free, affordable, or even legitimate. Cooperative Extension Service (Michigan State University Extension) operate non-profit credit counseling programs.
Many universities, military bases, financial institutions, housing authorities, and branches of the U.S. If possible, find an organization that offers in-person counseling. Most reputable credit counselors are non-profits and offer services through local offices, online, or over the phone. These counselors may not collect money upfront or before their service is rendered. Credit counselors do not collect money from you or disburse funds on your behalf to your creditors. If you find yourself overwhelmed by your debt and are at the point where you are considering using a credit counselor, debt management or debt settlement company, you should know the following distinctions:Ĭredit counselors generally advise individuals on managing their money, offer solutions to current financial problems, and/or help develop a personalized plan to help prevent future financial difficulties. Don't wait until your accounts have been turned over to a debt collector. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level.
If you're having trouble making ends meet, contact your creditors immediately. See the following section: Developing A Savings and Spending Plan for information on developing a budget. The first step toward taking control of your financial situation is to do a realistic budget of how much money you take in and how much money you spend. Although these options may not be ideal for some, the choices listed below could be considered.
There are many ways individuals can eliminate or reduce their debt. However, if you find yourself carrying too much debt, eliminating debt should be a top priority as it could jeopardize your financial future. Even if it is a little debt, it still must be properly managed. In general, most people find themselves struggling with debt.
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