Many people find themselves slipping into debt at some point in their lives. It’s rather easy to end up in debt due to something beyond your control. Typically, something happens that requires you to pay money you had not planned; these types of unforeseen circumstances are very common. The scenario happens similarly for most people: a medical emergency, automobile expense, or job loss causes a massive change in the amount of money you have on hand. Then, you have to borrow money to pay off your extra expenses. In your attempt to pay off your extra expenses, you incur debt that you can’t afford to pay back. Since you can’t afford to pay it back immediately, you start to incur more interest on your debt. After that, you might be able to pay the interest, but you can’t pay the debt. The longer the debt lingers, the more debt you have to incur to pay off your daily obligations such as rent and power bills. Before you know it, you’re underwater and can’t pay off your loans. Luckily, there are ways to pay this off. Your creditors want you to pay back the money you owe them, which makes sense since it’s their money they want back. They’re willing to negotiate with you on the debt, but you still need a professional advocate on your side. If you try to negotiate your debt on your own, they’ll end up making you pay more than you have to. Here’s why you need a professional debt manager.
Debt Management
A professional debt management firm such as Free From Debt employs a team of skilled debt managers who will advocate on your behalf with your creditors. Debt and finance law is incredibly complicated, which leads many people to take bad deals that aren’t in their favour. However, it might still be tempting to try and go it alone to save money. This isn’t a good idea because, even though your creditors want you to pay them back, they also want to make you pay as much as possible. Therefore, they won’t be very inclined to give you the best possible deal.
Debt Agreements
Debt agreements are contracts that can be negotiated between you, the government, and your creditors. All agreements are slightly different, but they tend to follow similar guidelines. Debt agreements allow you to bundle all of your various debts into one lump sum or monthly payments. Also, an agreement freezes your interest rate at the time of the agreement. Once the agreed amount of money is paid, you are freed from all of your debt. There are certain conditions you have to meet before you are eligible for a debt agreement, though. You have to prove your income, you can’t have been in bankruptcy in the last decade, and a few more things. Some of these things can be difficult to prove; therefore, it’s in your best interest to hire someone who knows how to negotiate with creditors.
With a good advocate on your side, you can get out from under your debts.