While they can be confusing, credit card debt services can also be very beneficial, especially if you are struggling with overwhelming debt. To clear things up for you and point you in the right direction, I have compiled the below list of 10 things that you need to know about these services. While it might not answer every single question you have or clear up every last inch of your confusion, the ’10 things’ will definitely get you started on the right track.
Credit Card Debt Services Tips
- They’re not all created equal. Yes, it’s obvious, but it needs to be stated just the same: not all credit debt services are created equal. For one thing, each individual service is different – what works for one person might not work for the next. In addition to this, each company will offer a slightly different service, so the same exact service provided by one company will probably not be exactly the same as the ‘same’ service offered by another.
- You shouldn’t rely on them. Though the point of using debt services is to relieve some stress from your life, you shouldn’t rely solely on them. Rather, you should focus on re-establishing your financial security and paying off your debts with their help.
- You should look at the long-term. After choosing a debt service, you should set your sights on setting up a solid long-term plan. This long-term plan should focus on keeping you financially stable and protecting you from falling into overwhelming debt again.
- Debt consolidation. One of the most popular credit card debt services, debt consolidation is definitely something that you need to know about if you are struggling with overwhelming debt. Debt consolidation is the process of combining all of your individual debts into a single monthly payment. At one time this makes your payments easier to manage and keep track of, and it can also lower your monthly interest rates (and even, potentially, your overall monthly payment).
- Debt settlement. Perhaps the second most popular form of debt management, debt settlement is another service that can seriously help you when you are in debt. In its most basic sense, it is working out settlements, or deals, with your individual creditors. Oftentimes, you can have the amount of your debt reduced, and then when this new reduced debt is paid off, your entire debt is considered paid in full.
- Credit counseling. Though debt consolidation and debt settlement are two excellent options as far as debt service go, credit counseling is by far a more long-term solution. In addition to helping you re-establish yourself and pay off your debt, credit counseling also focuses on bringing your credit score back up and keeping it there. Instead of just offering a quick fix, credit counselors strive to educate you so that no money problems befall you again.
- A free one-time credit report is a great resource. A commonly overlooked credit card service, a free one-time credit report is an awesome (and free) way to better understand your credit situation. Available to all consumers once per year, your free credit report is actually three credit reports, one from each of the major credit bureaus. A credit report can help you figure out what you’re doing wrong financially and can help you catch any mistakes before they blossom into something much worse.
- Not every service is for you. Too many people think that any old credit card service will help them with their situation. Then they just jump on board, without doing any research or thinking, only to be disappointed. It is important to note that debt consolidation, debt settlement, and credit counseling aren’t all good for everyone. In most cases, one of them will be the best for you and that is the one that you should invest your time and money in.
- Combine them together. Yes, I know that I just said that in most cases one service will be better for you than the rest, but, in other cases, two or three of them will work together to best benefit you. You can sometimes combine debt consolidation, debt settlement, and credit counseling to create a truly effective debt-reducing package.
- Make a Plan. After you have researched several different debt services and picked the one(s) that are best for you, it is time to make a plan. A solid plan is an essential foundation to successfully reducing your debt. Set goals, write them down, and stick to them.
This can be very confusing. There are many different individual services and vastly differing companies that offer them. Add onto that the difficulty of actually capitalizing on each service, and there is a lot that you need to know. Hopefully the above tips, the 10 things you need to know, will help you sort out credit card debt services and eliminate your overwhelming debt or credit problems once and for all.