What you should do and what you don’t while having a debt-management services 1

What you should do and what you don’t while having a debt-management services 1


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Your current debt burden can anytime rise up, without any intimation. It can be happened because of your unnatural financial behaviors. However, there are few ace debt-management professionals who can save you from severe debt problems. But unfortunately, at present there are some people also who will try to con you in the name of debt-management. If you check the federal records, you’ll find more or less 255 cases where several poor people were the victims of fraud by these debt-relief providers. The FTC along with the state enforcement revealed a data about those debt management companies, abusing people who are already knee deep in debts.

So, let’s check all the Do’s and Don’ts you should have keep in mind while opting a debt-management service :

Do’s :

  • Make upfront payment – The lenders will be thinking about at least 50% from you as up front of your total loan. But never mind, you can negotiate with that totally. You can find many lenders who will initiate the negotiation process only after having a good amount as an advance payment from your end.
  • Face an attorney – Many creditors have hired representatives for managing their debt related issues. So, it may be possible that you’ll also have to face an attorney hired by your lenders or creditors, who will negotiate with you regarding debts on behalf of the credito. But don’t worry, unless your debt amount reaches sky-high, normally you don’t have to encounter a lawyer frequently.
  • Pay your credit through money order – You are revealing your financial identity with your creditors every time you pay or make adjustments on the payment structure. The creditor can get your financial details & other bank related information from your payment details. But there is something fishy that you are not noticing. If you are getting sued, it will be easy to grab your funds through the details the creditor has. So, make sure you use other payment ways like  money order to pay your debts in future.
  • Demand “fully paid” certificate – Creditors will generally agrees for settlement regarding your debts if they get something special. That means, if you afford a big amount, you might get a discount easily from the payments they owe to you. However,You should keep in mind that whenever your debts are paid in full, it should be enlisted in your credit score. Check whether it is added in the report as paid completely.  Ask your creditor to take initiative  and make required changes if your debts are still remaining as “Debt still active” status.
  • Defend yourself through a lawyer – If your negotiations got failed , or if the creditors fails to keep their bargain, lawsuits can be filed. So, you must also prepare an attorney to present your side in the court.

To be continued……