How to Deal with Creditors’ Calls

You’ve stopped answering your phone. You’ve cut it off even. You just can’t take the creditors telling you that you owe them more money. What will you do? It’s time take control of the situation, and get those creditors’ off your back.

Give Them Money – Any Money

Creditors know that you can’t pay your bills. They wouldn’t be calling if you paid your bills. So, when they call, talk to them about how bad your situation really is, and then ask if you can send in a certain amount.

The amount you tell them might not make them happy, but they will enter into the computer that you said you would be sending in some money, which makes them stop calling for at least the rest of the month. Just be sure to send the amount you promise them.

Be Polite – No Matter How Rude They Can Be

While creditors aren’t supposed to be mean to you on the phone, some of them can’t help it. They hate to call number after number being hung up on or shouted at for eight hours a day. You don’t have to give them sympathies, but do remember that their job is difficult, and all they are doing is trying to get the company they work for the money they deserve.

Speak to the creditors slowly and politely. Tell them that you know that you are behind on bills, and that you really wish you were in a different financial position. Ask the person if there is any way that he or she can help you. People naturally want to help, so this invites them to do exactly what they want to do.

If the creditor is extremely rude to you, don’t be shy to ask for respect. Explain that you know his or her job is difficult, but you will not tolerate being treated so poorly.

Ask for a Supervisor for More Help

If you can’t get the creditor on the other line to help you at all, ask to speak to a supervisor. Often times, the person with the most power in the office can give you the power of control over settling your debt.

Ask the supervisor how you can get on a payment plan that works for you. You may even mention that if you were able to reduce your debt by as much as 10 percent, you may be able to pay on it much more easily. The supervisor may just surprise you with a debt settlement that will get those creditors to stop calling.

The More You Avoid – The Faster They Come

You may not want to deal with creditors, but dealing with them is the only way to get them to stop calling you. They want to talk to you, and they will not stop before they do. So, just pick up the phone and face it. You’ll find that it’s not as bad as you think it will be, and you may just end up feeling as though you’re gaining control of your finances.

What to Expect from Debt Consolidation

Debt has fallen on you like an avalanche. You don’t know where to start digging, and all you can think about is how much more debt you  have  in your way. You never thought you’d be in this mess, but here you are – buried. The good news is that there is a way out of the pile of bills with debt consolidation.
Debt consolidation has become a popular option for those looking to eliminate their debt problems as quickly and effortlessly as possible. With the number of companies sitting there to overlook your debts and offer counseling on paying them off, debt consolidation can be a tad tricky to understand at times. So while you’re looking at the stack of bills piling on your desk, are you wondering about how debt consolidation actually works?
Knowing what to expect when you choose debt consolidation will help you finally put an end to your financial madness.

What to Expect from Debt Consolidation

Making an Appointment

The first thing you should do is research the different debt consolidation companies available. One of the easiest ways to check the credibility of a company is by keeping your eyes out for their BBB or Better Business Bureau reviews. If the company has secured an A+ rating on BBB, then you can trust the company with your eyes closed.
Just like any other business, each debt consolidation company has its own fees for the work they will do to help you. While you may not want to go with the most inexpensive company,  getting a good rate is important in starting your road to financial freedom.

  • Start with finding a company of a good and strong reputation. Seek recommendations, read reviews, and research. For example, the National Foundation for Credit Counseling (NFCC) offers certification for counselors and sets certain requirement for member organization. Thus, seeking references from the NFCC will be a good way to start.

Once you find a suitable company, call them to  schedule an appointment. Be sure to ask  about the type of documents you’ll need to bring.

The First Appointment

Duringthe first appointment, your debt consolidation counselor will look at your income, expenses, and debt. He or she will then calculate all of your debts, and then determine the affordability of the amount that you will have to pay per month.t.
 To determine that exact figure, your counselor can look into finding a debt consolidation loan, and start calling creditors to discuss settlements.

Before Your Second Appointment

Between your first and second appointment, your counselor will be hard at work calling your creditors to negotiate a settlement. Many lenders will decrease the amount of money you owe them if you close your account and agree to pay the lower amount. This is where having a good counselor will benefit you. One that is experienced in negotiations and well known in the circuit of creditors will have a better chance  of getting your debt decreased significantly. Some people can see a decrease in debt up to 20%.
While you are at the stage where you are about to schedule a second appointment, to help you live a life that is completely debt-free, a certified credit counselor will calculate your total debts. All secured and unsecured loans are taken into account, which can help create an all-inclusive budget for you.
Once the final amount is settled or all debts, your counselor will go to work on finding you a loan that has the lowest interest rate. With a low-interest rate,  there are higher chances of you being able to afford the monthly payment.

Your Second Appointment and Beyond

At your second appointment, you’ll find out how much debt you’re responsible for, and the loan that your counselor has found for you. If you agree, you’ll fill out the necessary paperwork.
The next step is to determine how you will make the monthly payments on your debt consolidation loan. Your counselor will help you come up with a budget. You’ll use this budget to the best of your ability, and schedule subsequent appointments w to make necessary adjustments, if any. .

Paying fees

Certified professionals will charge you a certain amount of fee. You don’t want to settle with something that’s too inexpensive for you to digest, or go for a company that plans on burning a hole in your pocket. Make a comparison especially when it comes to getting a bang for your buck. You will find non-profit organizations as well, but you will still be expected to pay a minimal fee and some nominal charges to get your consolidation work started.

Final words

Once you manage to grab a hold  on your budget and payments, you will be free to deal with your personal fianances on your own. If you ever need assistance, your debt consolidation counselor is only a phone call away.

How to Choose Best Debt Consolidation Company in USA

I do think that there is no need to drive the nail home why you should try your best to get out of debt trap. There is a line of reasons which are really very good to go through and push you into some prompt actions. Several debt consolidation companies are working in the USA. Here is a list of tips finding the best among them.

How to Choose Best Debt Consolidation Company

Consider industry rating of the concerned company:

A good industry rating for a company is sort of identification mark that says it is a source to rely on. A reputed US credit consolidation company is expected to have a positive rating with the Better Business Bureau or BBB and industry organizations too. A good rank is a sort of piece of pride and so the companies never slip the chance of mentioning the affiliation on their websites. However, there is no harm in doing some additional research and go for verification of good rating as claimed by the lenders. This is ‘rule of thumb’ as to how to choose the best consolidation company in USA. If the company demands upfront charge and several complaints have been pasted against the company, it will be wise of you to move on to other lenders.

Lender’s statement:

The debt consolidation company often arranges for automated payment. It is both hassle-free and worry-free process of debt repayment. But that does not mean you will not ask for banking statement or do the same once in a blue moon. You must get a regular banking statement to know how the deducted money is working as well as the progress report of your balance after money transfer to your creditors’ account.

Is it an inexpensive choice:

The well-known companies are very transparent in their service though cost may be sometimes their down side. These companies always provide in-detail information including the fees for their services. No hidden fees and no effort to hoodwink the customers. They have good will in the market and they swear by ethical business practices. You need to check if the USA debt consolidation company is actually legitimate. Does it ask you to pay in advance?

If it is the case, then the company is operating in defiance of strict USA laws that prohibit the practice of demanding any sort of advance payment. One of the best tips regarding how to choose the best consolidation company is to get everything in writing.

Whether it is repayment terms or interest rate or your eligibility or other requirements, make sure to get everything enlisted in a paper so that there is no scope of denial on part of the lenders.

Five Steps To Dealing With Stress And Anxiety Associated With Debt

When submerged in debt problems, it becomes very easy to be affected by increased levels of stress and anxiety.

After all, it’s only natural that we’re worried about a problem such as debt. It can affect our mental wellbeing and consequently put a strain on our relationship with friends, family and partners.

The key to all of this is to not let any mounting debt problems affect other areas of your life and creep into the concerns of your day-to-day activities. All types of debt can be handled with if approached in the appropriate manner and dealt with efficiently. Remember, thousands of people across the country are in the exact same position as you.

Dealing With Stress And Anxiety Associated With Debt

Below are some tips and advice on how to avoid becoming increasingly stressed and anxious at your financial perils.

Talk: 

The first thing to mention to take into consideration is talking about your debt. Don’t keep your financial troubles to yourself if it’s troubling you. Talk about it to close family members who are likely to be able to give you some wise words of wisdom and help you with your anxiety.

Another great way example of using communication to help you with your stress is to contact free advice help lines such as the National Debtline and the Citizens Advice Bureau. These organisations hire trained professionals who are capable of dealing with all sorts of debt-related issues.

Take action: 

Start taking action on your debt by drawing up a strategy. Ask yourself; ‘What am I going to do to repay the debt?’ Developing a budget and taking on a second job are useful ways to gain some extra cash. Once you have created an idea of making more money, it’s likely your state of mind will become clearer and more at ease with the process of debt recovery. Again, take advantage of the aforementioned help lines which can aid you with such planning.

Confidence:

By taking action and starting to make small savings, you’ll find that your confidence will start to build again. It’s imperative that you keep a positive attitude at all times and reassure yourself that you will overcome the debt and look forward to a bright future. Just think how could life will be without any debt! That’s your goal!

Relax:

To help maintain your healthy well-being, there are a number of practices that you can take on board. Firstly, make sure to always get a good night’s sleep. A lack of shuteye can leave you feeling agitated, tired and uncoordinated. Secondly, eat well and keep to a balanced diet – fatty foods are not only bad for the waistline but also your well-being. And finally, stay active. There’s nothing like the positive stimulant you receive when you’ve just completed some form of exercise.

Solution:

Above all else, the stress and anxiety that you can suffer from during your debt recovery can be reduced significantly if you come up with a solution to your problems. Take into the account the advice this article has given, contact an advice help line and strategise your way out of debt and envision the amazing future that’s just around the corner for you.