There are many tools available to consumers to help them repay their unsecured debt. If your debt load has gotten overwhelming or unmanageable, you’ve probably been looking at ways to get help. I know how oppressive and insurmountable debt feels. Getting out of debt is a lot like losing weight. When you see the entire dollar amount you have to lose to be financially trim and healthy again, you want to throw in the towel and go shopping. Instead of viewing the entire debt load as a whole, break it up into manageable pieces with changes you can make every day that will impact the whole while not crushing your spirit.
Debt services are a thriving business because of the number of people who want or need help. With so many options in debt management assistance, how do you choose the right service for you? How do you know that the company is legitimate and won’t do more harm to your credit and debt situation than good? A good place to start is the National Foundation for Credit Counseling. When you contact NFCC, you’ll find a reputable credit counselor in your area.
There are many problems in opting for a debt settlement company instead of a credit counselor. Many debt management companies require you to not pay your bills until your creditors will take any settlement. Any forgiven amount is reported as earned income to the IRS. There are new rules that take effect today to help consumers deal with debt management companies.
- Debt Management companies have to be completely open and forthright about their fees and give consumers a realistic view of results.
- Debt Management companies can no longer misrepresent themselves.
- The company has to show an accurate representation of its successes and failures.
Would you use a debt management company? Do these new rules cover enough?