Debt Relief Programs For Consumers–Are National Debt Assistance Plans Helpful In Erasing Unsecured Debt?

Numerous debt relief programs and companies, which may offer assistance through local, state, or national debt relief programs, have been sought out by numerous consumers over the past months as debt relief has become a high priority for men and women as a result of poor economic conditions. Obviously, factors like cutbacks in employment or a reduction in income has caused many to miss payments on debts or has brought about problems in the lives of consumers which necessitate a solution before their debt gets out of control.

For this reason, numerous debt relief services and nonprofit credit counseling organizations have offered to assist homeowners by speaking with creditors to either lower principal amounts, interest rates, or extend repayment terms which can bring lower monthly payment. However, there are some who question whether consumers should contact these national debt assistance companies or credit counseling agencies when it concerns negotiating debt relief strategies.

While there are some national debt relief organizations which have been helpful, there are also consumers who have been taken advantage of by fraudulent companies who offered to relieve a consumer’s debt, but have either ended up costing them more money over the long run or simply taking their money and providing assistance.

Reputable debt relief companies and credit counseling agencies can be found, but sources like the FTC often advise consumers to research a company before they began working towards a debt relief option. However, some financial advisers have suggested that consumers simply talk with their creditors directly rather than working through a debt relief organization.

Obviously, in cases where a consumer simply needs assistance arranging their financial life so that they can meet their payments, a nonprofit accounting agency can be helpful. Yet, when it comes to a consumer needing to negotiate with their creditor, there have been individuals who were able to contact their creditor directly and work out a repayment plan.

Again, it will depend on an individual’s financial situation as to whether they can find the debt relief they seek, but consumers who may worry about fraudulent debt relief companies or having to pay fees for debt relief services have benefited, in some cases, from simply working with their creditor directly. While this may not be advisable for every consumer who is struggling with debt, some advisers feel that it may be a good first step which could help an individual avoid fees that may be associated with a debt relief company.