Many people have found themselves facing high unemployment rates, jobs being out sourced to foreign countries, and the dwindling economy. The combination of these three economic situations has left many families facing critical decision about their credit, and the options that are currently available.
This has not just affected lower and middle class citizens. There are people from all different income brackets facing financial ruin, and have no idea how to attack the overwhelming circumstances of withering credit.
There are several solutions that may be appealing, but if you are unaware of the process and procedures that are available to you. You might have more questions than answers.
Repairing your credit is an option. You can either work directly with the collection agencies, and creditors or you can pay a debt consolidation company.
A debt consolidation company is a company that works directly with your creditors. They negotiate with the creditors to get the best possible payment solution for you.
Once you have requested the services offered from the debt consolidation company, you will no longer receive harassing phone calls. From this moment on all communications with the collection agencies, or creditors will be done by the chosen consolidation company.
This option is realistic, if you don’t want the hassle of direct communication with creditors. Since this process can be consuming, and many times add undesirable stress to your life it is generally best to seek the help of professionals.
If you think that you can handle the task of contacting your creditors, and successfully manage an affordable payment arrangement, a debt consolidation company may not be the option for you.
Tackling the concept of confronting creditors with affordable monthly payments can be exhausting, but if you stay focused and are determined in the end a reasonable payment arrangement could be the final answer. You should control the situation. This is your financial future. If a creditor or collection agency suggests a ludicrous monthly payment that you know you cannot afford, and refuses to budge. There may only be one other alternative, and that is bankruptcy. You should make sure they know that piece of information. There might be a good chance that a reasonable payment plan can be arranged. The bottom line is if you would choose the last alternative to file bankruptcy, no one wins. Not even the collection agency.
You now have some idea about the financial options that are readily available to you. Having excellent credit is important to most families. Repairing credit that has felt the hardships of the world Economy has been a devastating experience for many people. Only you know what option will work best for your financial situation.
This is the old article and was published on 11 December 2010.