What is the Best Way to Get Out of Debt? Credit Counseling Vs Debt Settlement
In the state of New Mexico debt relief programs are abundant. There are several options that can be used in order to free yourself from debt. Debt settlement, consolidation & credit counseling programs are just a few of them. New Mexico (NM) Debt relief programs, credit card debt relief, and debt consolidation programs provide you with a new way to get out of debt, medical bills, personal loans, unsecured debt, third party collection accounts, and more. New Mexico debt relief programs provide many services to help you become debt-free and to get out of debt quickly and easily.
Credit counseling is a nonprofit service offered by some non-profit organizations. They offer debt relief by providing budgeting tools and guidance to make it easier for you to stay on track. With credit counseling you can consolidate all your unsecured debts including credit cards and student loans into one monthly payment. Some of the services that credit counseling agencies offer include debt consolidation, financial planning, contacting creditors, budgeting, contacting creditors on your own, and contacting lost creditors.
The Debt Consolidation Scam – A common debt consolidation scam that has been around for years is the debt consolidation scam. One popular method of consolidating debts is to file for Bankruptcy. Although filing for Bankruptcy can be an easy way out of debt, it is not a solution to long term debt problems. Declaring bankruptcy can affect your credit score and cause other legal issues. Although declaring bankruptcy may eliminate or greatly reduce the amount of your debts, it will leave you with higher debt payments and a shorter period of time to pay them off.
Another problem associated with filing for bankruptcy is the risk of having your home foreclosed on. Filing a Chapter 7 bankruptcy can be the start of a foreclosure process and is not recommended. To avoid this situation, debt relief agencies to advise their clients to first contact their creditors and work out a payment plan. If these efforts do not result in lower payments, the debt relief agency will then try to secure a court agreement to extend the repayment period or sell the property if no progress is made.
The Best Way to Get Out of Debt – Choosing the right debt relief method is the key to finding the best way to get out of debt. You can use a credit counseling service or a debt settlement company. Either way, there are several things you need to consider before hiring someone to help. Find out if they have experience negotiating debt and make sure that they are accredited with the Better Business Bureau. They should also have worked with financial companies and creditors on a number of occasions.
Legitimate relief companies cannot force you to join a program. Any company that promises you that they can get rid of your debt within a short amount of time without requiring any work on your part is most likely a scam. Financial law gives you the right to refuse a program if you feel that it does not serve your financial needs. If a debt settlement company attempts to force you to sign a contract or purchase anything from them, you should leave the company immediately.