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Debt Free Help - What is Debt Free Help?

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Credit cards and personal loans are easier to use than ever. Many people become deep in debt without realizing the seriousness of it until it is unmanageable. There are so many bills to pay that debt repayment becomes a problem and interest compounds along with late payment fees. At this point, it is possible to get help to find a way to consolidate payments, reduce the monthly payment and eventually become debt free.

Help comes from debt counseling services, some of which are free and some charge a fee. The aim of debt free help is to organize the debt so that repayments are manageable within the income of the client and repair their credit score. This can be done in several ways. Consolidating credit card debt and home equity loans are two main ways. Another way is to try to reduce the payments on any unsecured loans.

For a secured loan, collateral is given so if repayments stop or are late, the lender has the option of claiming the collateral. An unsecured loan, such as credit card debt, may be easier to negotiate because the lender is usually happy to get any repayment rather than have the borrower default through bankruptcy, in which case they get nothing.

There are many debt counseling services that are reputable and will help a borrower get out of debt. There are also services that do more damage than good to the borrowers credit score and may, in the long run, put them deeper in debt. It is best to look for a government agency that will give debt free help or a non-profit service, however, it is possible to pay a small fee and get good help.

The U.S. Government gives Grants for debt relief which can be used to pay off credit card debt. Free Money Government Grants are given to those who have no other way to repay their debt. To apply for this there must be a list of all debts, a budget that shows the repayment is not possible and a record of income.

When looking online for debt free help there are some points to consider before choosing a councilor or credit repair company. The first is to find out if they ask for fees up front. A reputable company will arrange payment that will fit with the borrowers credit issues. They will work on the credit score and take payment as they go and not ask for a large fee before they have done any work. Also, a good credit repair service will be in contact with the three major credit bureaus and will work on the credit score until any mistakes, sometimes done by credit card companies, are cleared. A reputable company will also provide financial education for the borrower to be sure they learn how to handle their finances to stay out of debt in the future. Beware of companies that depend on the latest credit repair software. This may not work for individual needs. Each debt situation is different and needs customized debt free help. Finally, the credit repair service should work within the law. Only help within the legal framework will give genuine debt freedom.

The education that they offer shows how not to get into debt in the future. There are things to do that most people are not aware of such as calling their creditors and asking that the annual fees be reduced. Creditors will most probably reduce them for good customers. Also, credit card debt can be transferred to another credit card company that gives lower interest rates. This can be done every time the lower rate expires.

Without debt free help, people may not realize that they need to be careful when considering a debt consolidation loan. Credit card debt is unsecured debt for which it is possible to negotiate a reduction. A consolidation loan could be trading unsecured debt for secured debt where the interest rate will be less, but if the financial position of the borrower isn’t strong enough to make the repayments, the security could be lost. This collateral may be a home or other property.

It is possible for a borrower to negotiate his or her debt themselves, but this may not be the best option. Debt free help has professionals with the expertise, and creditors know that they are dealing with an expert. Professionals have many different strategies to deal with different situations, and they will have a better chance to achieve debt freedom.

Debt Free Services - Tired Of Being In Debt? Maybe These Debt Free Services Can Help [next] [back] Debt Consolidation Unsecured - How to Get the Best Debt Consolidation for Unsecured Debt

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