There are valuable and legal companies who can provide help with your debt. Whether you need some non-biased advice or debt management help, you can find reputable companies to assist you in getting out of debt.

Non-Biased Advice With A Credit Counselor

Certified credit counselors offer non-biased advice to help you get on better financial ground. In a confidential meeting, in person or over the phone, you can discuss with a counselor what your financial goals are.

They will give you several options and discuss the pros and cons of each. For example, they may suggest applying for a home equity loan to pay off high interest credit cards. They will also help you develop a budget.

Lower Rates With Debt Management

Debt management companies lower your unsecured debt rates through negotiations with financing companies. They also handle paying your accounts for a small fee.

There is little to no damage to your credit report by using a debt management company. In as little as a years time, you can have a good enough score to qualify with conventional lenders. However, sometimes creditors will put a temporary hold on your credit applications until they see you are making regular payments.

Reduced Principal With Debt Negotiation

A more drastic step is to work with a debt negotiation company to eliminate part of your loan balances. Your debts are partially wiped out, making it easier to repay remaining balances.

This approach will have long term affects on your credit report. It will take at least two years to have a good credit standing. You also will have to pay tax on the eliminated principal.

Scams To Watch Out For

Legal credit management companies are interested in providing you with a service for a reasonable fee. The goal of illegal or unscrupulous companies is to steal your credit information or take your cash.

Be cautious about handing out your social security or credit card number until you have signed a contract. Be wary of companies that charge fees when no service has been rendered. And be especially distrustful of companies that claim they can wipe clean your credit report. Legally no one can do that. Only time and good credit habits will rebuild your credit to good standing.