With the economic turmoil that we all have endured, falling into financial trouble is not at all uncommon. Vermont has experienced significant changes in jobs like most other states in the U.S. Although things have improved, the residue of job loss and downsizing is real.
Not only does economic issues impact all of us, life is unpredictable. A divorce, a major illness, the loss of a job, and so many other life events can change our situation instantly. With these changes, sometimes it is hard to meet our debt obligations. This does not mean you are irresponsible. Like the old adage says, bad things happen to good people.
You are not alone. Many other residents of Vermont have found themselves facing some trying times, so what do you do?
Face the Debt Crisis Head On
Face the debt turmoil head on. Gather together all of your bills. You need to know exactly where you stand. Facing the reality may be daunting but it is the first step in regaining control of your financial future.
Once you know exactly where the problem lies; you are ready to take steps to tackle the situation. You have a number of options, but for now, let’s focus on debt settlement and consolidation. You can choose to do this yourself or you may find that utilizing a professional is the best way to go.
What is Debt Consolidation?
Debt consolidation is simply merging all of your bill payments into one payment. The payment most likely will have a low interest rate, and the payment should include multiple bill payments. Thus, your situation becomes more manageable. You eliminate the time and energy spent dividing all of your money up between multiple lenders and creditors.
Do it yourself Debt Consolidation
Once you fall behind on your bills, creditors know there is a problem. Unfortunately, many creditors are not willing to work with you until your debt is mounting and overwhelming. They realize that getting some money is better than no money at all.
If you choose to deal with your creditors yourself, you need to be very organized. One way to do debt consolidation is to get a low interest credit card before your credit score is ruined. Oftentimes, you can get a lower interest rate card or a 0% interest rate for a certain period of time. This will allow you to bundle some of your debt into one manageable monthly payment.
Do it Yourself Debt Settlement
If you are not able to use a low interest credit card or get a line of credit to pay off multiple debts, it is a good idea to look at discussing with your creditors debt settlement. Again, your creditors are not usually willing to talk about this until it is clear that you are far behind on your payments.
Dealing with creditors can be quite frustrating. There is red tape and laws that govern how they can handle your debt obligations. If you are not aware of all of the laws and guidelines, it can be easy for them to push you into a corner. In Vermont and across the nation, there are reputable Debt Consolidation Companies that have the experience to advocate successfully on your behalf.
Choosing a Debt Consolidation Agency
It is critical to take the job of locating the right Debt Consolidation Agency very seriously. All agencies are not created the same, and there are some scams out there can put you in a worse situation than your current one.
Do your homework and utilize the internet to examine the reputation of the company. You can look at complaints, reviews, the Better Business Bureau ratings, etc. You have plenty of information at your fingertips. Remember this company is handling your finances. That should not be entrusted to just anyone.
Debts that are Not Usually Included in Debt Consolidation
In Vermont and across the nation, all debt is not eligible for Debt Consolidation. For instance, debt that involves collateral. With an auto lender, a default in payments will usually result in repossession of the vehicle. Your financial agreement with the auto lender allows for the car to be repossessed if payments are not made.
Another debt, your home mortgage, is also another debt involving collateral. Failure to make payments will result in a foreclosure on your home. Please keep this in mind when deciding on debt consolidation. Unsecured debts, credit cards, revolving loan credit lines and other debts may be good candidates for debt settlement.
Know Your Rights as a Consumer
It is important to know there are laws that protect your rights. The federal government has laws and guidelines in place to restrict debt consolidation companies. These companies must follow certain rules.
Using a Debt Settlement Company in Vermont can be quite positive. The right company can put you back on the path to financial good health. All you may need is some professional guidance to help put things back in order. Your situation can improve and your credit report and score will improve over time.