Debt Counseling

Reduce the Burden of your debt- Take debt counselling

Most people avoid taking large amounts of debts to pay for their everyday expenses. Having a stronghold of personal fiscal responsibility is considered by many as a strong character aspect in today’s world.

In recent times, economies all over the world are undergoing major financial crisis and recessions that dramatically shift their paradigm. During these times, many people have been forced to take debts that have crushed them under the burden of debt. All this just to barely manage to keep their head above water. Many people consider this a lost battle. Many people prefer filing for personal bankruptcy than take more loans and bear the burden of the interests and the repayments.

If you have taken personal loans to maintain your standard of living during these difficult times, chances are you will feel this burden too. By taking huge amounts of debts you have placed yourself in a situation where you have to choose between your standard of living and the reduction of the burden of debt on your shoulders.

The debts you take adds to your expenses in the form of instalment payments, interest and other mounting expenditure which leads to more shortage of money and leads to you taking more debt to repay the existing ones and maintaining your standard of living. This unhealthy cycle continues to the point where you will unwillingly be forced to file for personal bankruptcy or endure the wrath of your creditors.

If you think you are ready to get out of this cycle and start afresh, it is time you talk to a debt counselling professional. Debt counselling is one of the sure-shot methods of reducing your debt burden. It also offers various other advantages.

Once you enroll in a debt counselling program, the wrath that your creditors showered upon you via telephone calls and e-mails will cease almost instantly. They will have to deal directly with your excellent credit counsellor and instead of worrying about excuses to give to them or how to avoid them, you can indulge yourself in planning out a whole new household budget for yourself which will enable you to deal with your present financial condition better and more efficiently.

The debt counselling mechanism is pretty simple. They take your case and your counsellor immediately begins negotiating a lower rate of interest and better repayment schemes with all your creditors.

Most of the non-profit organisations that provide this service, receive a lot of credit from banks and profit lenders. At first glance this seems like a conflict of interest but it actually guarantees better results than usual.

For your creditors, the negotiations would take place along the lines of bankruptcy. If you file for bankruptcy, the creditors will be lucky to walk away with a mere fraction of their debt. This will be a loss for them as much as for you.

The counsellor will show them these aspects of your situation and ultimately convince them into lowering their rates and increasing time given to you for repayments and at the same time they will help you draw up a more reasonable budget for your family and help you repay the loans quicker.

It is a win-win situation.

 

Marie Nelson is a senior financial writer associated with many in the financial community. She writes articles on various financial topics. For instance, her articles on debt consolidation, covering taxes, stocks, binary brokers, global and the US economy, have received rave reviews.