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*Disclaimer: This article is accurate as of the publish date August 10, 2013
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If you are having problems paying down your debt, chances are you’re experiencing financial hardship or you owe an overwhelming amount. Howbeit, you are not the only person facing the debt issues. Being in debt has almost become a part of American culture and the majority of people are in debt. If you have started to get dunning notices from numerous creditors and debt collectors, you need to take stock of the situation. Rather than running away from the problem, it would be better for you to try and pay down the debts. It’s possible to pay down the debts of your own, but if you feel the need, you can get the help from a professional.
Offline Vs. Online Debt Help
Debt help is the option through which you can learn how to manage your debts and pay them off. You can get both offline and online debt help. There are various types of debt companies from whom you can seek debt help from; debt consolidation companies, debt settlement companies, credit counseling agencies, and so on.
The process through which offline and online companies help you is basically the same with one difference; with an offline company, you actually get to meet the counselor who is helping you manage your debts. Some people prefer online help because it works with their busy lives, and on the other hand, some people prefer to actually get acquainted with the person that’s helping them. Everyone is different, so go with the company that fits your preferences.
Does Online Debt Help Really Exist?
The answer to this query will depend on whether the company is authentic, considering all the scams you read about all over the internet. Since you are unable to meet the person, it becomes hard to determine if the company exists and if you can trust them with your confidential information.
Both offline and online debt help companies are supposed to help you with managing your debt and to make affordable payments. Your counselor is the one who is going to negotiate with your creditors and obtain a proper payment plan. It is the counselors job to negotiate with your creditors and try to lower the debt amount owed, in total. They can also negotiate to lower the interest rates or get the same rate for all debts. You would then be required to make the payments to your debt help company, per the terms of the negotiation. As per the process debt help companies follow, they are supposed to disburse the payments amongst your creditors. Here’s where the problem lies; you have been facing debt issues and financial hardship and now you are giving your money to the debt help company to be forwarded to the creditors. It’s harder to trust an online company, too, because you never know if the company will “disappear” and never hear from them again. What if they run away with your money? You may fall deeper into an even stronger current of financial worries. This has happened and chasing an online company is not easy if they don’t have a brick and mortar office.
So, if you’re shopping around for an online debt help company it would be in your best interest to check their contractual terms, their work history and experience, see if they are registered with BBB, check our reviews on the company, and find out what the address is for their brick and mortar office. After all, the credit counselors must be working in an office somewhere. The best debt help companies will have a track record somewhere. A little research can save you a lot of money in the long run.
Author Bio: Andy Masaki is a financial writer and has immense knowledge on finances. Some of his articles are based on topics like debt, credit, debt help, and more.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
*The content in this article is accurate at the publishing date, and may be subject to changes per the card issuer.