Debt Reduction Assistance

Debt reduction assistance allows consumers to receive help when financial obligations become out of hand. The average American accrues and maintains 8-10 thousand dollars worth of debt. As a result, many people at one time or another may require help through a financial counselor or agency. The first step is realizing the need for help and looking at the potential benefits received by seeking outside assistance.

The benefits of these programs, to some, are phenomenal. Some organizations can cut the minimum monthly payment up to 70%. This is done through consolidation or something similar, depending on the agency or organization offering the debt reduction assistance. To find out how low monthly payments could be, the consumer will need to submit an application to an organization. Most will have online applications that take just minutes to fill out and submit.

An application for this type of program will require several pieces of personal information including address, social security number, dollar amount of debt and the names of the lenders owed money. This information will be taken to assess the amount of total debt plus interest that you owe. After reviewing all options available, a personal counselor will contact the consumer, either by phone or e-mail. This process usually takes 24 hours or less. While talking to a personal counselor, it is important to review all available options in order to effectively begin chipping away at debt.

After a plan has been set up, the counselor becomes the negotiator between the consumer and the lenders, making calls from creditors during dinner a thing of the past. The only person the individual will have to speak with about their debts owed will be the counselor. The debt reduction assistance program will consolidate all debts into one low monthly payment that will be due to them each month, instead of each creditor individually. By the counselor negotiating interest rates with the creditors, the minimum payment becomes lower. Since the interest rates are lower, more dollars are going toward the actual principle amount. Many people who would have tried to pay off debts individually have taken 10-25 years. With help, a person can feasibly pay off debt in 2-5 years and end up keeping more money each month for other expenses.

With this kind of kick start to excellent money management and financial planning, a person has the option to save and theoretically not fall into a debt trap again. Forming these good habits can lead to a lifetime of good stewardship of money, a model God asks all of us to follow. "My son, let not them depart from thine eyes: keep sound wisdom and discretion" (Proverbs 3:21). All persons choosing to enroll in a debt reduction assistance program should use discretion in revealing personal information.

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