Debt Consolidation Whiz Educates Consumers on How to Make Smart Choices in Debt Relief

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Debt Consolidation Whiz uses their website to publish an article about making smart choices with debt relief options.

Consumers must consider their options carefully if they really want to achieve debt freedom.

On August 5, 2013, Debt Consolidation Whiz published an article that they hope will educate consumers regarding their debt relief choice. The title of the published article is "How To Make Smart Choices With Debt Relief."

The article begins by stating the importance of choosing the right debt relief option. They stressed that consumers must consider their options carefully if they really want to achieve debt freedom. Debt Consolidation Whiz believes that there is no shortage of debt relief programs and there is one for every financial situation. However, choosing it can be a bit tricky. The article states two factors that should help consumers pick the right one: based on their payment capabilities and how it affects their ability to reach their goals.

When choosing a debt relief program based on financial capabilities, the article advises that the consumer must consider their basic needs first. Whatever is left, that will be for their debt payments. For instance if their debt payment fund is enough to meet the minimum of the credit requirement, then all they need is restructuring of the payment plan. But if the fund is not enough to cover the minimum, then a form of debt reduction may be needed.

The reason why the article cautions against choosing the wrong debt relief program is because most programs, if the consumer fails to follow the agreed payment plan, will forfeit any benefit that was promised. That may end up wasting the time, money and effort of the consumer.

The article provided the specific debt relief programs based on certain financial situations.

1. Consumers with stable income that can pay for regular monthly expenses and debt payments at the same time can go for debt consolidation.
2. Consumers with an unstable or has lower than the average income and who can support monthly expenses but not debt payments may have to go for debt settlement. This debt relief program aims for debt reduction which works out pretty well for the consumers limited resources.
3. Consumers with unstable, low or no income at all may have to go for bankruptcy. If they perceive that their financial situation will not improve anytime soon, the consumer has no choice but bankruptcy.

The article also informs consumer that they have the option to get the aid of the debt professional - or they can work on it on their own.

The second part of the debt relief selection process is finding out how the program will affect the financial goals of the consumer. These financial goals, as defined by the article, are the plans after they have completely paid off their debts.

Debt Consolidation Whiz reveals that in most cases, it is the credit score that will define if the consumer can work on their financial goals or not. For instance, if they want to buy a home or start a business, these usually require a loan - which in turn requires a good credit score.

The article reveals that the key to take care of one’s credit score during debt relief is to pay for the whole debt amount. As soon as there is any form of debt reduction, the creditors mark the account negatively in the consumer’s credit report.

Debt Consolidation Whiz advises consumers to find a balance between the two factors. If they want to take care of their credit score but it is really not possible with their current finances, then they may have to make certain sacrifices.

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Sallie Steinbach
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