Debt Relief Council
A debt relief council is an organization dedicated to aiding debt laden consumers find the right solution for lessening or eliminating the heavy and even choking affects of large fiscal liabilities. In many cases, the organizations are non-profit and have been started to meet the needs of consumers not being met by loan companies and other so-called consumer debt companies attempting to take advantage of already hurting people. The uniqueness of the debt relief council lays in its 360 degree look at all the issues that bring people to a money liability crisis in the first place. While some credit counseling companies may have a single focus to enlist the consumer in a particular financial liability reduction program, a council attempts to show a consumer all the options available to him. In many ways, a true debt relief council is displaying charity, or love with its sleeves rolled up. "And now there abideth faith, hope and charity, these three; but the greatest of these is charity." (I Corinthians 13:13)
Since a non-profit has no commercial axe to grind, the agents can spend as much time with a client as needed. Someone who is in deep financial obligations may be suffering from depression, guilt, self-deprecation and just be at a total loss in knowing what courses of action to take. If the council is faith-based, praying with the client is a great place to start; invoking God's intervention in someone's life can be a powerful ally in such a situation. But agents in a secular or government sponsored council can also help to build the client's self image by giving hope for the future and a sense that the client is not alone in the battle for financial liability freedom. Once some hope and confidence have been restored, the educational strength of a debt relief council can come to life.
In most cases, the profile of a debt relief council client will be a low average to below average wage earner who has always struggled to make ends meet. Like all Americans, these clients have desires to own the things advertised on television as well as just taking care of family needs. And just like others, the client has easily succumbed to the siren song of the credit card companies that twelve easy payments of ninety-nine dollars can put that furniture or TV or appliance in his house. And over and over again the purchases are made until the drowning has begun. Perhaps the client comes in when credit is used to pay down other credit accounts, or when a major medical crisis hits and being out of work for a month has shut off all income. A relief council and its educational programs can help the client begin to understand household economics and budgeting skills.
Budgeting is something that even more financially endowed Americans often don't get. Consider that seventy percent of Americans are estimated to live paycheck to paycheck. That is a sure sign that budgeting is not a skill only deficient among lower income wage earners. So the process of really taking the time to go over expense priorities, savings plans, ways to raise income and other budgeting issues is an important aid to those mired in financial obligations. As the agent really gets to know the client, he can offer a myriad of possible action steps to take, such as educational opportunities for initial job training or retraining. And then the real debt relief council solutions can be discussed.
In most cases, a debt relief council will be able to offer credit counseling services to the client. This approach to cash obligation relief is based on agreements the council has formerly forged with credit and charge card lenders. Revolving interest rates are often cut in half and those monthly, and often multiple bills are consolidated into one payment amounting to half of what the multiple bills were in the past. It has been a service offered to debtors for years and has been a proven way for committed consumers to get their financial lives in order. However, this particular approach can hurt a person's credit score for a period of years.
A debt relief council is free to offer many options to its clients and it may also include the invitation to look at the debt relief network's approach to handling debt. In this approach, through a legal agreement, the network assumes the obligations of the consumer and deals directly with the creditors to eliminate the financial obligations. This radical approach has also proven to be effective and is a workable alternative for some. For a few, financial matters may have deteriorated so much that strong legal action must be taken through the use of bankruptcy proceedings. Chapter seven can totally free a person of all but student loan and tax liabilities, and chapter thirteen is much like the credit counseling approach.
When it is all broken down, debt relief is not a mystery. Rather it is the result of a determined debtor getting the right information and deciding that this is the last day to be a victim. The banks of America have designed a high interest system to keep people enslaved for decades. A council providing debt relief information and instruction is a wonderful resource, but it can be no more effective than the desire of the consumer to end the madness. The success of any debt relief plan lies within the heart of the debtor.
Debt Relief GroupThe solutions offered by a debt relief group can make all the difference for consumers who are struggling with debts that have gotten out of hand. There can be multiple reasons for financial failure. In addition to overspending and careless fiscal habits, many families fall victim to unexpected medical bills, sudden job loss, a costly divorce, or any number of unforeseen situations. Consolidation of debts, negotiations with creditors or even bankruptcy are among the options that families and individuals who face mounting bills must consider. The help of a professional in the field can make a huge difference in the life of embattled consumers. Choosing a good debt relief group can be more difficult than it might seem. While there are many honest and reliable agencies that are ready to serve a besieged client, there are also many organizations that do not have the best interests of the client uppermost in mind. Some of the things to look for when choosing a financial counselor can include professional behavior, a lack of high pressure sales tactics, and a desire to educate the client on responsible economic habits in addition to finding a solution to the client's credit problems. Bankruptcy may not always be the best answer. By negotiating a settlement with creditors, a debt relief group can help clients find financial solutions and peace of mind.
A reputable debt relief group can offer skilled counseling and expertise that can help a client succeed at correcting a difficult financial situation. By meeting with these counselors, a client can learn about the kinds of habits and mistakes that put their finances in danger in the first place. A counselor may go to the client's various creditors and work out a settlement that presents a realistic plan for the payment of bills, loans, and other sources of indebtedness. Many times a counselor can work with a creditor to get various fees and penalties waved on behalf of the client. In addition to these fees and penalties, interest rates may be reduced. A consolidation of unsecured debt can make meeting monthly payments an achievable goal. The ability to make one monthly payment that a client can reasonably afford rather than trying to meet the demands of multiple monthly bills can make a huge difference for many families. Most consumers know that making only the minimum payments on credit card debts will mean that it will take years and years to pay debts off completely. Consolidated plans can help a consumer pay off outstanding loans and pay them off much more quickly than only making the minimum monthly payments. As loans are paid off, credit scores will rise. Anyone who has faced difficulty renting an apartment, getting a job or getting approved for a loan due to bad credit knows the value of a restored credit score.
A debt relief group will generally offer a client the opportunity to consolidate debts in a variety of ways. The most common option is a debt settlement. This settlement will involve negotiating with creditors to arrive at an agreement that allows the debtor to pay off their debts in one convenient payment. Often, creditors know that they stand a good chance of not being able to collect any money at all on the defaulted loan. The thinking is that collecting even a small amount of the money that is owed is better than no money at all. In addition, any funds that are not recovered can be written off as a loss. Working with the debt relief group is usually in the best interest of the creditor. That is not to say that all creditors are willing to strike a deal. Many will refuse to come to the table with certain credit repair services. Any organization that claims that it can get all creditors to come to an agreement before all creditors have been consulted is not being honest. The Bible tells believers that righteousness has a higher value than wealth. "Riches profit not in the day of wrath: but righteousness delivereth from death." (Proverbs 11:4)
A reputable debt relief group will make sure that a client understands that there is a difference between a consolidation loan and a settlement of debts. A consolidation loan is a brand new loan that is used to pay off a collection of other outstanding loans. A settlement does not pay off loans but instead will renegotiate the terms on existing indebtedness. Trained counselors should understand the laws that pertain to unsecured debts and can guide a client through the process. An individual's credit scores may be impacted by the services that are offered by these counselors. Since consolidation efforts are generally seen as bankruptcy prevention measures, this can reflect negatively on a client's credit rating. However, the consumer's credit rating would be impacted in a much more negative way by any kind of bankruptcy filing.
Many clients are understandably concerned about privacy and security issues when they take advantage of the services of a debt relief group. Maintaining confidentiality is not only a mark of professionalism, but is a mandatory requirement for counselors in this field. The fees that these organizations will charge can vary. In general, the more complicated a client's case, the more the agency will need to charge. All potential fees should be discussed at an initial consultation. Many organizations will offer this initial consultation free of charge. Whatever options a debtor might choose, working to pay off indebtedness and correct a poor credit rating are positive steps in the right direction.