The growing problem of consumer debt has given rise to a whole new type of company that claims to be able to solve your debt problem and repair your consumer credit rating. Some of them are excellent companies that provide a real service and others are just another way of getting money out of you.
It is very difficult to tell which you should trust. You may even feel that you could do the job for yourself and do not need to pay anyone any money to sort out your debt problems.
There is some truth in the idea that you can deal with debt on your own. Many people have done just that. But it is a demanding process that takes a degree of objectivity. It is not always easy to look at your own finances in a rational way. Most of us prefer to ignore the unpaid bill, the credit card debt, and the mortgage arrears. We feel a mixture of shame and fear that makes us bury our heads in the sand.
If you can overcome those feelings then perhaps you can deal with your debt. But if you're so smart how did you get into debt in the first place?
In essence the process of debt repair is a simple one. You need to get a picture of your total financial situation. That means you have to work our your income, your debts, your liabilities and assets. You then have to negotiate with your creditors. That means ringing them up and persuading them to accept a payment plan that may be less than they want but is what you can afford. Then you have to work out a budget that will keep you our of debt in the future while allowing you to keep up your payment plan.
That is essentially what credit repair companies and consumer credit counseling services do. It sounds simple enough. But they have years of experience in negotiating payment plans with creditors. They know the ropes and they are not as emotionally involved in your debts as you are. Having an experienced negotiator on your team
If you can do it yourself then do it. If not hire some help. What you need is a company or counseling service with a track record. Ask them how long they've been in the business. How successful have them been?
Now we come to the question of fees. Most consumer credit repair agencies even those that work on a charitable basis will charge a fee. It's not like hiring a lawyer who can work on a no-win-no-fee basis. Find out what they charge is. They should be completely open with you. if their fee structure is not clear then go to another company. The competition in this field is enormous. Check out a number of companies before you decide.
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