Consumer Debt Advocates-Tips for Eliminating Your Debt

Companies that employ consumer debt advocates will work on managing your finances if you have an excessive amount of unsecured debt. Problems dealing with debt are results of overspending, job loss, medical emergencies, and other possible circumstances.

These organizations market themselves as providing ways to make your debt go away. If you choose to work with consumer debt advocates, you are making a decision to enroll all or part of the debt you are dealing with into a debt relief program. When you do this, you are giving the company the right to speak to your creditors on your behalf.

Consumer debt advocates will then communicate with your creditors and attempt to negotiate the reduction of your debts. The goal of the negotiation is to get each creditor to accept much less than what you owe as payment in full for your financial obligations. And to reach an agreement on repayment terms that you will be able to manage.

Debt negotiation is the fastest method of becoming debt-free. All of your credit card debt may be eliminated in approximately two to four years. From the start, your monthly payment will also be reduced-up to 60%.   

You will continue to receive collections calls from creditors unless you hire someone to handle negotiations on your behalf. Your creditors will do everything possible to get you to pay your outstanding balances.                       

Upon entering a debt relief program, you will need to make a commitment for an amount of money that you will be able to pay each month. This amount will go toward paying down your debts once the company reaches an agreement with each of your creditors. You will be asked to set up a monthly draft from your bank account for this amount.

Don not hire a company that requires you to make your monthly payments to them. There is no need for this. It’s best that you open an additional savings account and place all your funds for settlement in this account. After you and your creditor come to an settlement agreement, cut them a check and send it certified mail with receipt. This will be proof of pay-off.

Not all of the money you pay into the program will be used each month. The idea is to allow you to build up a balance in your account that can be used to settle debts in full when a creditor is willing to settle debt for less than you owe.               

Only you can decide whether or not the services provided by consumer debt advocates are in your best interest. It is essential to take the time to educate yourself about what you are getting into. You should take note of the services of these companies rather than making a fast, emotional decision based stress that go hand-in-hand with dealing with debt. It is important to note that not all debt relief companies are the same. If you decide to go this route, choose the one that has realistic expectations about how the company can assist you to being free from debt.