Select Page

What Services Does Debt Relief Advocates Provide?

Many American families find that debt can quickly get out of control if you do not have a clear plan to stay on a payment schedule. It only takes one unexpected event to derail even the most conservative savers from keeping within their budget. If you have found yourself using your credit card to take care of daily expenses and without any real direction on how to get your spending under control, a debt relief service may be able to help guide you to a better resolution.

Instead of feeling paralyzed by indecision on how to go about addressing your debt, you can enlist the services of a debt relief agency, such as Debt Relief Advocates. The main advantage of working with one of these professional debt relief agencies is that they can negotiate directly with your creditors to see if they can wipe out any portion of your total debt. Along with lowering the total amount of debt that you would have to pay back, a debt relief service can work to get you a single payment plan for all of your various loans combined. This will give you some additional peace of mind that you are working on a single goal and can see the difference that each one of your monthly payments is making in getting you out of debt.

What Should You Look for in Choosing a Debt Relief Service?

Before you sign up with a particular debt relief service, you should have a clear picture of how the service is paid for its work. For example, you should ask right away if the debt relief service charges you a fee before it actually achieves a negotiated settlement of your personal debts. The fees that these services charge can be expensive in relation to the amount you are paying off.

If you are considering a debt relief service that promises it can wipe away all of your debts, this is usually a sign that this is not a legitimate company. No creditor will voluntarily relinquish its rights to collect on the amounts it is owed. However, some creditors may be willing to take a slight discount in order to guarantee payment faster. As a general rule, you should steer clear of any debt relief company that tells you it can solve all of your financial problems for an upfront fee.

What to Know Before You Use a Debt Relief Service

One of the downsides of working with a debt relief service is that it could have a negative impact on your credit score. Also, you should be mindful of the potential tax consequences of loan forgiveness. If a debt relief professional negotiates a lower debt amount with a creditor, the amount that was forgiven may need to be reported on your taxes as additional income for that calendar year.