My Best Debt Relief Plan Is Causing Me Some Concerns

Today I want to discuss two of the common questions I have found people often worry or ask about before arranging the best debt relief plan to suit their circumstances.

The first concern that is frequently asked is:

If I Use A Best Debt Relief Plan Will My Employer Know?

Most debt relief companies are often asked “Will my employer find out that I am taking part in a debt negotiation plan?”.

My short answer to that question is no. As long as you don’t tell them they likely will never find out.

The reason is any company offering a debt relief plan has no need to contact your employer, and neither should they. However I do recommend you ask this question of any company you are considering employing to get you the best debt relief possible as it is important.

Once you have started your best debt relief plan the company you have chosen must then become the sole point of contact for your creditors. This greatly reduces the chances of your employer finding out that you are struggling with debt at all.

One of the main ways that an employer finds out about an employee’s debt problem is when creditors call your workplace. If you have a debt problem then my advice is get help quickly and minimize the chances of creditors or debt collectors visiting you at work.

Since one of first steps the best debt relief company will do is to contact your creditors with instructions they are now handling your debts, these creditors now need to work directly with the debt relief company.

This eliminates the need for creditors to contact you, or your employer, right away this is a big relief for you.

Another regular concern my research noted is:

Will Arranging For The Best Debt Relief Program Affect My Credit Rating?

Advice I got on this concern is this would depend on the status of the debt.

Regardless if your accounts are slightly or significantly delinquent at this point then making debt settlements is going to make a direct improvement on your credit rating because it will then show that these accounts are resolved.

However if your accounts are current at this point, then your credit rating will decline during the debt settlement program as the accounts go delinquent and then as each one is settled, your credit rating should improve again.

The positive effects on your credit report is that your future ability to pay goes up as debt settlements are made.

The late payment marks will generally be removed from your credit report with credit restoration, because a debt settlement means that you have paid back an agreed amount to your creditors.

When Arranging Best Debt Relief It Is Important You Realize:

From a creditor’s perspective, your ability to pay back your debt is a big factor. This means reducing the current debt load by arranging a debt relief settlement plan you effectively increase your ability to pay back debt.

As an example if your current debt payments are $2800 a month, then you apply for a large loan like say a house mortgage the creditor won’t just look at your credit rating.

They will consider your ability to make the new loan payments, as even if your credit rating is perfect without the ability to pay back the loan you can expect to be declined.

If your situation is similar to this then it makes sense to immediately arrange for the best debt relief you can and start a debt reduction plan.

Arranging a debt settlement can significantly reduce your monthly payments while maintaining good progress in settling unsecured debts.

This increases your ability to pay back say the future house mortgage loan you intend to apply for, and your application will be considered much more favourably.

When considering arranging a debt settlement plan do choose a company who has proven they will get you the best debt relief results, and will work to ensure you have the least adverse affect on your credit rating.

My next article will explain more commonly asked questions.

Bruce Rayner has a wealth of experience in successful business management, development and marketing, including credit and debt administration and control. He has been self employed for around 40 years and has always made his own way in the world.

In 2009 I investigated 17 debt relief companies searching for the best one in USA and Canada, and rated them on a list of essential criteria the company should have.

If you are looking for Mortgage Company Near Me then read more .

Which Among the Debt Relief Services Is Best for You?

If you’re heavily indebted, struggling to keep up with bills, and searching for solutions, you should know that there are a lot of debt relief services available to you. The hard part is determining which one is the best for you.

The traditional debt relief options include bankruptcy, credit counseling, debt consolidation, and debt settlement. If you haven’t yet started researching the subject of debt relief services, than you probably have no clue which one of these types of relief might be best for your specific financial situation. An easy way to get a general idea of which ones might be the best for you is by assessing your debt and your ability to pay it off based on the projection of future income.

To get started, get a rough idea of how much debt you have. Next, you’re going to categorize this debt by type. For the purpose of this exercise, your debt will either be categorized as “secured debt” or “unsecured debt.” A secured debt is debt in which your creditors hold collateral. Examples of secured debts include mortgages and car payments. Unsecured debt, on the other hand, is debt in which your creditors do not hold collateral. This means if you don’t pay the debt, your creditors don’t have a legal right to repossess any of your belongings. Unsecured debts typically include credit card bills and medical bills.

Once you’ve determined how much debt you have and have categorized it into one of two categories, you can then move to the next step of the assessment. In this step, you need to examine the interest rates on your debt, the projected pay off, and your projected future income. When looking at these numbers, you need to ask yourself “is it possible to pay this debt off by making only minimum, monthly payments?” If the answer is yes, then you the debt relief service for you may be credit counseling or debt consolidation. Under these two programs, you can usually get that little help you need in the form of decreased interest rates or reduced monthly payments; but for those worse off, this little bit of help may not be enough. In that case, you’re going to have to consider the possibility of debt settlement or bankruptcy.

You’re now probably wondering why you had to categorize your debt as either secured or unsecured. Well, that becomes important now as it can mean the difference in negotiating your debt or discharging it via bankruptcy. If the majority of your debt is unsecured, you can most likely avoid the cruel fate of bankruptcy. This is because your creditors will be willing to negotiate a settlement for your debt since they possess no collateral on it. On the other hand, if most of your debt is secured, your creditors can simply take what is theirs; meaning, there is no need for negotiation. If this is the case, unfortunately, all debt relief services may be unavailable to you, except for one: bankruptcy.

Now you should have a pretty good idea of where you stand in terms of options for debt relief services. But don’t celebrate (or queue the funeral music) just yet — you can’t be certain which debt relief option is the best for you without further research. Make sure you consult with the proper authorities and it wouldn’t hurt to discuss your options with a bankruptcy lawyer. In the end, no matter which debt relief option turns out to be the best for you, you will still be on the path to building a brighter financial future.