Debt Relief - Where do I begin?

Most people do a quick internet search for debt relief, contact the first debt relief company they find, and are "sold" that company's program whether it is the best debt relief program for them or not. The result is an unhappy client who spends a lot of unnecessary time and money, and eventually drops out of that debt relief program. Situations like this are typically due to a sales person talking the client into buying into a debt relief program that isn't completly right for the customers situation.

"Debt Relief" is a term used for several types of debt reduction programs including consumer credit counseling, debt consolidation and debt settlement. Most people do not know the difference between Credit Counseling, Debt Consolidation and Debt Settlement programs. These debt relief programs are three different industries with completely different results and consequences.

Here is an comparison using a total debt of $20,000.00:
• In Credit Counseling you would pay back $20,000.00 + interest + fees
• In Debt Consolidation you would pay back $20,000.00 + interest
• In Debt Settlement you would pay back $11,000.00 without interest!!!!

The right Debt Relief program can get you to where you want to be. In order to decide where you want to be, you must know where you are right now! Make a detailed list of your unsecured debts (credit cards, personal loans, medical/hospital bills, collection items, private student loans, repossessions and old utility bills). These will be important when considering debt relief. List the interest rates as well - talk about an eye opener! If your average interest rate is 14% or higher then time is of the essence. Debt relief could make a huge impact on your monthly bills.

Why is it important to move quickly if you have high interest rates? Because credit card interest is compounded daily! You are paying interest on interest. This is why it takes the average person 30 to 40 years to pay off their credit cards. The right debt relief programs can greatly reduce both the time and amount of money you pay back.

Getting into the right debt relief program is not only about finding a way to break the debt cycle by changing the way you think about your debt, but also impacting and changing your long-term habits in regard to debt.

With debt relief, there is a light at the end of the tunnel if you will do your homework. Remember, debt relief companies who introduce you to ALL of your options are the companies that have your best interest at heart!!