It seems that debt management companies often get a bad rap, but when you look at what a debt management company can do for you, your financial situation, and your sanity, it seems that there are many more benefits to using a debt management company than many people would like you to believe.
Benefits of Using a Debt Management Company
Interest rates and payments may be reduced – when you use a debt management company for help with your debts, your interest rates can be reduced, which in turn reduces your payments. Even better, instead of multiple payments, you may qualify for debt consolidation, which gives the added benefit of reduced number of payments per month. For example, if you previously had 4 credit cards that you were making payments on, your debt consolidation payment may combine all 4 of those payments into one payment. And the new payment may even be lower than the sum of the 4 payments. This is more convenient and will help to keep you more organized in your debt reduction process… in addition to keeping more money in your pocket.
When going through a debt management company, you could see some relief from creditor calls. Even better, you will receive relief from many creditor fees. If you’ve ever been sent to collections, you know the feeling of that pit in your stomach when your phone rings and you don’t recognize the number. Collection calls are not fun and can even be intimidating, but by utilizing a debt management company, they will try to work with the collections agencies.
What Naysayers Say About Debt Management Companies
While some people may complain that debt management companies take longer than just paying down your debt yourself, you need to ask yourself the serious question of whether this is true or not. Maybe you have been trying to pay down your debt by yourself for quite some time, only to look at the total figure and notice that it’s not decreasing as rapidly as you think it should. A qualified debt management company is trained to create a debt management program that will work for your particular situation so you can get a better handle on your debt and pay it down more efficiently than if you were to do it on your own. If you are not skilled in this task, it can take substantially longer to pay down your debts, and you may risk harming your credit score in the process. Truth be told, many debt management companies offer programs that can be completed quickly if so desired, obviously the duration depends on your particular financial situation, but you won’t know until you ask.
Others will claim that by hiring a debt management company, you are paying for something you can do yourself. That’s not entirely true. A reputable debt management company provides a service, yes, but many other companies provide services that people use every day for things that they could do themselves, as well. Do you ever order takeout? Pay for car service? A debt management program provides a valuable service, just like any other service provider. A debt management company, however, provides a service of necessity rather than convenience. They provide a service that helps you to get out of a bad financial situation, and they are much more equipped to deal with creditors than you are. They know who to speak to, what to ask for and what programs you may qualify for. This is invaluable information that can help you reduce your interest rates, payments and maybe even your amount of debt… Not a bad deal.
If you are in a position where you can no longer make your monthly credit card, medical bill, and/or other loan payments, contact us at Christian Debt Counselors today. We can help you with your get your debt problem under control and get you on the right path to financial independence.