Professional Debt Consolidation & Credit Counseling Services: Put an End to Your Debts

Five years ago, lab technician Deborah Manners was neck deep in debt. She had taken out two mortgages on her home to pay for her mother’s cancer treatment, in addition to a loan to cover post-chemotherapy expenses. And then the school she was with downsized some staff and her job was gone. In her words, “I saw my life unraveling before my eyes.” How long this state of affairs would have continued is difficult to tell, had not the lawyer Deborah approached for filing a bankruptcy petition advised her to go in for professional debt consolidation and credit counseling services.

“I had always thought debt consolidation meant taking a fresh loan to cover the existing ones,” says Deborah, “but I realized I was wrong.” In fact, debt consolidation and credit counseling are a part of debt management, whereby an individual may clear his/ her debts without resorting to a fresh loan.

The principle is this: a professional debt consolidation and credit counseling service provider negotiates with your creditors to reduce the interest on your loans, so that you pay less than the amount you originally had to pay. In real terms, this means a lower monthly outgo. This service is particularly useful for those with multiple debts to different lenders. With debt consolidation and credit counseling, you can organize your debts under easily maneuverable heads and thus manage your finances better. Additionally, some debt consolidation and credit counseling companies also negotiate an extended repayment deadline, so as to give you more time to arrange the funds. Finally, some companies take on the responsibility of distributing your repayments among the creditors, thus taking the hassle off your hands.

In Deborah’s case, debt consolidation and credit counseling have helped her keep ahead of her repayment schedule, though her current job as shop assistant pays less than her last one. Having also lost her mother soon after she began debt consolidation and credit counseling, Deborah also believes that the professional financial help went a long way in helping her get over her emotional distress.

Debt consolidation and credit counseling services are easily available both on the Internet as well as offline. Several non-profit government-backed companies offer these services free of cost, which means you needn’t worry about consultancy fees. However, it is important that you realize exactly what you need from the company before you approach it. Do not make the mistake of falling for grand promises and thus getting further sucked into the debt trap. So before you sign up with a debt consolidation and credit counseling service provider, check their antecedents carefully.