Falling into a difficult financial situation is not uncommon. Life can be unpredictable and at some point in most of our lives, we may be unable to pay all of our debt. Being in a tough situation does not automatically mean that it is some fault of yours. Many other citizens in Oklahoma face the same difficulties as you, so don’t feel that you are all alone.
Life just happens. Divorce, death, job loss, medical issues, and the list goes on. It is nearly impossible to plan for every curve ball life may throw at you. So what do you do?
First, avoiding the reality of your financial problems is not the answer. You cannot afford to stick your head in the sand and avoid the reality of your financial issues. As difficult as it may be, you must look at your situation for what it is and deal with it head on.
What is Debt Consolidation?
Oftentimes, financial difficulties may result in mounting debt that becomes over whelming. At a certain point, bills get significantly behind, creditors are calling. You may need some help to get yourself back on track and stop the spiral effect of mounting debt and collection activities.
Debt Consolidation is merging all of your multiple bill payments into one manageable monthly payment at a low interest rate. You can choose to enlist a professional debt consolidation company or you may choose to do it alone. The choice is yours.
Do it yourself Debt Consolidation
Although dealing with your creditors directly is an option; it can be highly frustrating. Sometimes it is difficult to navigate the waters of all of the rules and regulations that govern debt consolidation. Without the proper knowledge of all of the tricks of the trade, an individual may find themselves lost in a maze of red tape.
Choosing a Debt Consolidation Agency
Finding the right Debt Consolidation Company can be extremely beneficial. There are definitely scams out there that prey on those who don’t do their homework. It is up to you to choose a debt consolidation company with a solid reputation, and a company that does not seek to overcharge you and under deliver.
It is important to know that there are certain debts that are not eligible for debt consolidation. Any debt that is secured with collateral is not a good candidate for debt consolidation. Your auto lender can simply repossess your vehicle. Your mortgage company can foreclose on your home and any other debt that involves collateral cannot usually be successfully included in a debt consolidation program. Thus, it is important to keep these facts in mind.
Know Your Rights as a Consumer
Our government does have rules and regulations in place to govern this industry. The debt consolidation companies must abide by these laws that are created by different Federal Agencies, so it is imperative for you, the consumer, to know what is legal and illegal when it comes to debt consolidation.
Prices and fees must be disclosed to you up front.
Results and time frames. The company must inform you of how long the program will take. The company must tell you how many years or months it will take before they can make an offer to your creditors.
Offers: the debt consolidation company must let you know how much money you will have to save before they even approach the creditor with a settlement offer.
Advise of negative consequences. The company must disclose to you all negative consequences that will come from you stopping payments on your debts. This is most often the advice of collection agencies. In order for you to save in account set aside for debt settlement offers, you will most likely have to stop your payments on your debts.
The debt consolidation company must be honest about the repercussions of your decision. Late fees, penalties, continued debt collection activity. In cases of auto loans and homes. These debts are not suitable for a debt consolidation company. Your lenders have the right to simply repossess or foreclose.
Credit Score Implications
Initially, your credit score will most likely decrease; however, over time as you are better able to manage your expenses, you will see your credit score improve.
The Benefits of Using a Debt Settlement Company
A debt settlement company that has a good reputation with experienced professionals can help you stop the downward spiraling of your financial situation. Although it is not a quick fix, it is a great step in the process of better handling your expenses.
An experienced company will know how to work with creditors to get you the best deal and to get you back on track. Do your homework and find the debt settlement company that will best suit you.