When you are drowning in debt it becomes commonplace to begin scrambling to find a debt relief solution. There are many different kinds of debt relief companies, all offering a variety of services. Many of these services are fee based, leaving you with large fees for services you could do yourself.
Think about this: If you are in need of debt relief, why would you pay someone to help you find it?
Don’t Spend Another Penny
Directly negotiating a repayment plan with your creditor won’t cost you a penny. By contacting your lender to explain your financial situation and arrange a repayment agreement, you can develop a debt relief plan that will save you hundreds in large “service” fees. However, negotiating with creditors directly can be difficult depending on the type of debt owed and how delinquent your account is at the time. The best tool to use in this situation is a letter of financial hardship explaining your situation and how your account became delinquent, along with a letter of intent that shows your intention of repaying the debts and a proposed plan.
Instead of seeking help through a debt settlement company, use a credit counseling agency. These agencies offer a variety of services, many of which are of little to no cost to you. You can find valuable information about debt relief options, how to manage a budget and how to use credit wisely. Many people find that the courses offered by a credit counseling agency provided enough information for them to develop their own debt relief strategy without having to pay a settlement company to do the very same thing for them. Look for a credit counseling company that is approved by the U.S. Department of Trustees and operate as a non-profit company.