Financial Resource: Beginner Investing to Financial Independence!

The use of credit cards begin with a benign notion of being able to buy the things you are hoping or wishing to own as soon as possible. Let’s assume that you are going to pay it back before you incur interest on it. Consumer credit card debt management provides a solution for it. Home mortgages, car loans, multiple credit cards set up a lifestyle which is very difficult to get out of. God forbid then if anything happens to suddenly cut off or lower your income drastically. A sudden realization of life mired in debt will then force you to look at debt management – a topic already being introduced in many educational institutions today.

Shopping around for a debt settlement company and having decided on one, the first thing your certified credit counselor does is send out proposals with the new repayment plan to each of your creditors. The initial phase comprising at least 3 timely repayments is necessary for your proposals to be accepted and for receiving creditor benefits.

How does a program for debt management work?

A DMP proposes to help you by

• Negotiating lower interest rates
• Gets late fees waived
• Arbitrates a schedule acceptable to you and your creditors
• Consolidates your monthly payments

A DMP must help you live while paying off your creditors and taking action on your behalf. Let the agency handle the collectors. To get the maximum out of a DMP you must find a good credit counselor. Search out a non profit Christian debt management service agency with a good record with the BBB, is also licensed and has current accreditation. Know how the program works exactly and that it is acceptable to you. No DMP agency can give you a quote without – your account status, creditor names, balance transfers, cash advances, purchase details, minimum payment amounts and current interest rates. Upfront fees and high monthly fees are danger signals. Know how payments are being disbursed to your creditors. Safeguard your sensitive financial information through a written privacy policy. Get everything in writing and enroll only if can make the monthly payments. Understand and crosscheck the terms and conditions of your Christian debt relief service program. And last but not the least cut up every credit card you have so you don’t get into any more debt.

Be out of debt in 3 – 5 years

Once on the DMP, check and review your monthly statements very carefully. Insure that creditors are granting all your benefits as they will reflect there. Make sure that all creditors are receiving your credit for payments made through your consumer debt management agency to managing credit card debts. Under a DMP you will receive – an estimate of time duration needed to complete your DMP, a list of all that you owe, each creditor’s amount owed, each creditor’s proposed payment and the approximate number of months needed to pay off the debt with regular full payments. This timeline serves as a motivational tool, a goal to aim for and every month shows you how close you are to success.

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