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Debt Consolidation -
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These agencies will meet with the debtor in a
personal session to go over his income, expenses, assets and liabilities,
and try to work out a repayment plan. These agencies often act like
an Selection of a Debt Consolidation Agency
Selection of a reputable credit counseling or
debt repayment service is very important to the success of a debt
consolidation plan. The agency should be a member of the Association
of Independent Consumer Credit Counseling Agencies ("AICCCA"),
or the National Federation for Credit Counseling ("NFCC").
These groups attempt to have their members follow professional practices,
and keep the cost to the consumer to a minimum. Agencies which charge
very large upfront fees, or high monthly service fees, are most likely
not members of either group. Consumer Credit Counseling Service ("CCCS") has been providing valuable help to consumers for decades, and is highly regarded. Representatives of CCCS have often spoken to bankruptcy attorneys about their service. In a particular case, it may be better for a person to avoid filing bankruptcy and instead go into an out-of-court debt repayment plan. This could be the case where the consumer has just about enough income to meet all of his expenses, and just needs to have the interest rate reduced, for instance, to allow him to do so. Most of these plans provide for full payment of the debt over a maximum 44-month period. The consumer also agrees to incur no new credit card debt during this period.
Factors to Consider Before Entering a Repayment Plan Before using the services of a debt consolidation or credit counseling service, the consumer should keep in mind the following four factors:
Personal Debt Renegotiation
Sometimes it is possible for the debtor to simply
call his creditor or creditors directly and attempt to work out a
restructure
The debtor may elect to hire an attorney to represent him
in trying to obtain an out-of-court workout or settlement with his creditors.
This can be advantageous, especially if the attorney is knowledgeable and experienced
in this area, and charges a reasonable fee for his services. Selecting the Proper Attorney
Care should be made in selecting the proper attorney
for the job. It does not make sense to pay an attorney an hourly fee
of $ 300 or more, just to have the attorney make a number of phone
calls and send letters and emails to creditors, if the attorney is
not reasonably sure that the efforts will bear fruit. Some attorneys
may charge a "success fee", where they are paid a fee based
on the success they have in reducing the amount of the debt.
Written by Henry Rendler | ![]() | ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() |