debt management?

Question

are these companys that take all your debts and put them into one easy payment any good, wot do they get out of it. do they cover court fines

Answer 1

Myth: The debt management companies on TV, like AmeriDebt, will save me.
Truth: You may get out of debt...but only with your credit trashed.

Debt management companies are springing up everywhere. These companies help "manage" your debt by taking one monthly payment from you and distributing the money among your creditors, with whom they've often worked out lower payments and lower interest. This is not a loan as with debt consolidation. Sometimes people get the two confused. However, because Americans are up to their eyeballs in debt, the debt management business has become one of the fastest-growing industries today.

Companies like AmeriDebt and Consurmer Credit Counseling Service can help you get better interest rates and lower payments, but at a price. When you use one of these companies and then try to get a Conventional, FHA, or VA loan, you will be treated the same as if you had filed Chapter 13 Bankruptcy. Mortgage underwriting guidelines for traditional mortgages will consider your credit trashed, so don't do it. Real debt help is found only in changing your behavior.

In short, debt management companies are out. Hard work is in. Change your financial behavior and change your life...for good. True debt management is about one thing - you controlling your money.

Answer 2

Debt management is an informal arrangement with your unsecured creditors to repay your debts over a period of time, usually extending the amount of time over which the debt will be repaid. With a debt management plan you can either negotiate with your creditors by yourself or seek out the services of a specialist Debt Management Company.

Answer 3

Demand help from the bank and have them consolidate debt and a repayment schedule. These firms typically sequistrate you or as good as which does write of your debt but you will never get credit again of any form nor a mortgage. Be very carefull as these companys are ruthless and do not have your best interests in mind when you are processed.

Answer 4

It is called as DEBT CONSOLIDATION:

Consolidating debt is an ideal way to reduce your amount and tenure of debt. You make a single payment to one lender on a certain date and this will help you clear off the debts faster. But the fact remains that debt

Answer 5

The best place to go is Consumer Credit Counselling service (CCCS), they are a charity so don't charge you anything. They just make a little interest. They will sort your budget out. Offer your creditors a payment plan and usually stop the interest.

Answer 6

Debt managements companies are not good samaritan. If you're struggling already, don't add another middle man to suck more money out. Go to citizens advice bureau.

Answer 7

Contact your local council as soon as possible and ask to make an appointment with a debt counsellor. They will help you free of charge and can probably save you a lot of heartache and money.

Answer 8

ive never heard any good things about these debt management companies-remember that they aren't charities and won't help you for nothing.The Citizen's Advice Bureau will give you all the info and help you'll need for free so start there

Answer 9

If you have debt problems speak to the citizens advice bureau first.

Answer 10

you have to pay them a lump sum and they speak to your creditors for you like a solicitor it a solvency agreement you have to pay so much month for so many month what ever you agree its a form of bankruptcy i think .