The dark cloud of debt looming over a person is a source of great stress and many sleepless nights. People who have been struggling to keep the debt collectors at bay and their financial situation afloat may want to finally give themselves a break by looking into different Debt Relief Programs. These programs are specifically designed to help people in debt, but many do not know who to trust with their personal financial information. This is very understandable, but things are about to change.
Here are a few tips to help people like yourself find the right solutions that are considered legit and effective:
Tip 1: Know The Different Types of Relief
The moment people read “Debt Relief” they are often confused because the term is very vague. There are many ways to translate “relief”, but when it comes to companies that offer debt relief programs there are three common types offered:
Debt Consolidation – There are many ways to consolidate debts, but the simplest explanation is paying off all current debts using a new and bigger single loan or even a line of credit. The point of consolidating a loan is to decrease interest rates and clients only have to make one payment each month instead of several debts.
Debt Management – This is a type of program that typically lasts between 3 – 5 years and is designed to help clients pay off their debt during those years. People pay their debt in one amount to a company and the company is responsible for paying the creditors. The advantage of debt management is the company will try to negotiate with creditors to lower your monthly payments.
Debt Settlement – This is a program where you are allowed to pay the creditor a lower amount but you are expected to pay one lump sum. A program like this can work to your benefit if you have cash on hand and want to pay off your debt and also save a little. This can be done with the help of a debt relief programs specialist or independently if you have enough negotiating power.
Tip 2: Do Your Research
Having a little knowledge about the types of programs available is already a big asset when choosing a company to work with. Before signing on with a debt relief company, it is always best to do some research of your own. Take a look at the company’s reputation and experience and do some more digging.
It is important to check the company’s BBB (Better Business Bureau) rating. While you’re already checking out the company’s rating, also check out the reviews to read about the experiences of other people with a specific company. This will give you a better idea on what to expect when you start working with them to clear your debts.
Tip 3: Never Pay Upfront Fees
Finally, avoid companies that as you to pay upfront fees for their help and programs. There are even some non-profit companies who are willing to help people in debt for free. Don’t forget to check those companies out to see if you can work with them to clear your debt.
Living a debt free life is possible, especially when you start using programs that are specially designed for your case and your financial capabilities.
Sentry Servicing is the most trusted team financial experts when it comes to Debt Relief. If you need Debt Relief Programs that work, contact us today.