Debt assist programs can help eliminate late charges and interest. This alternative to bankruptcy can help you climb back to a healthy financial situation. The way it works is a company assists you in combining debt and making one payment monthly to them as they pay off your credit cards and some other debts. You can solve your financial dilemma without having to file for bankruptcy.
Most people wonder how they wake up one day with so much debt. I mean it was only a few times you had to pay that bill late. The reason is that credit card companies want to make money. The charge you late fees, over the limit fees and then raise your interest rates.
Companies that offer debt assist negotiate with the creditors. They would rather receive some money than the possibility that with bankruptcy they receive none. The company will eliminate any more interest charges so the bill is actually paid off.
The goal is to help you put together a simple affordable plan that helps you get out of that troubled financial situation. Credit companies want to get paid. Any money is better than no money. So with debt assistance, the company negotiates a reasonable settlement and everyone wins.
As this seems like a great plan for everyone. The drawback is that you cannot apply for more credit cards and the ones you have are no longer available for use. The accounts are closed. Sometimes depending on how much debt you have it can take years to get out of debt.
Just remember that with debt assist you will eventually get out of debt. But this will also show up on your credit report. While it will not be on there for ten years like bankruptcy, it can also effect the type of credit you would receive in the future for purchasing a home or car.
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