What does debt relief companies do for you?

How do they proper? Is what they do legal and does it really stop collection calls? What if a person is already in a payment program where they have access to your checking account and you turn your debts over to a debt relief company? What is the procedures. Is using a debt relief really worth it to get out of debt?

What does debt relief companies do for you?
It depends. Many debt relief companies out there are scam. Even the non profit one. The one I recommend is http://www.loansmarter.com/creditsolutio... , they are the best in the industry. This year alone they settled $200million in debt and last May they received Ernst %26amp; Young awards for their accomplishment.
Reply:don%26#039;t worry there are online sites for your debt problem . All of the answers to your questions and everything that you need to enroll in program are provided right there, online, and they will be explaining everything to you each step of the way. The best part is that you can do it all from the comfort and privacy of your home or office.thanks



Reply:aside from rip you off, they pay ur debtors for you with ur money you pay them
Reply:You can negotiate yourself. It takes time and patience or you can get it done at http://clearmybills.com
Reply:Please do not consolidate or use %26quot;debt management%26quot; or %26quot;debt relief%26quot; companies. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. There is a better way.





A. Have a garage sale and sell anything that you no longer need or want.


B.Get a temporary part time job, if you have one, get another. The holidays are coming and there will be plenty of temporary jobs available. It is better to have a no fun year or two than a no fun decade.


C.Do NOT get a home equity loan. Taking on more debt will not get you Out of debt.





Here is a plan that can help you. If you work the plan, the plan will work for you:


1. Make a budget. Make the budget a week before you get paid. A budget is not a punishment! It is a tool which will free you from ever having to worry about money again. Put everything in your budget. Especially those annual, biannual, or quarterly bills like car registration, insurance, etc. Give every dollar you are going to bring home the name of where it is going. Add an %26quot;emergency fund%26quot; category to your budget for 25 dollars and save up until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If you can, set up a direct transfer to a savings account for your emergency fund. That way it moves automatically and you don%26#039;t even have to worry about it. You must cut your spending and live on less than you make.





2.First get current on all of you debts and make no more late payments. Stop using your credit cards immediately. Do not take on any more debt. Credit cards are like quicksand only the death is much slower. Make a list of all of your debts in order of highest interest rate to lowest interest. Use cash only for your spending from now on.





3.Pay the minimum due on all of your debts and then put your extra money towards paying off the highest interest one first. After you get that one paid off, you put the money you were paying on debt #1 (the minimum payment and the extra payment) towards debt #2. That will pay debt #2 off faster. When that is paid off, you put all three payments towards card #3 and that one will be paid off pretty quickly. As an example:





To start :


Debt #1 (highest interest): minimum payment+ extra payment


Debt #2 (middle interest): minimum payment


Debt #3(lowest interest): minimum payment





Debt #1: paid off


Debt #2: minimum payment from Debt #1+ Minimum payment from Debt #2 +extra payment


Debt #3: minimum payment





Debt #1: paid off


Debt #2: paid off


Debt #3:Mimimum payment from card #1+ minimum payment from Debt #2+ minimum payment from Debt #3+ extra payment.





That way, you will get them all paid off, on time, and pay the least interest. It will also help towards rebuilding your credit since you will no longer have any late payments. This works no matter how many different debts you may have.





4. After you get all of your debts paid off, add to your emergency fund until you have 6-12 months of income saved up. Put that emergency fund money into a liquid money market fund or into a Bank of America no-risk CD so that if you need the money you can take it out without penalty.





5a. When you have your emergency fund in place, add a category for %26quot;fun%26quot; to your budget. Save for a holiday, a vacation, a big screen, or dinners out, whatever goal you want. Remember to enjoy your life.





5b. When you have your emergency fund in place, start saving for your retirement. Join the 401(k) plan at work and contribute the maximum. Your employer probably matches at least part of your contribution so why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for your retirement now, you will probably retire a millionaire.





5c. When you have your emergency fund in place, start saving for your next car. Only buy cars, or other things that depreciate, with cash. Save up for a nicer car. That way you get the interest instead of paying the interest.





You can do it and it isn%26#039;t as hard as you think. Just follow the plan.