Originally posted 2010-03-21 06:55:51. Republished by Blog Post Promoter

In today’s receding economy, thousands of people are struggling just to make ends meet. With numerous layoffs around the country every day, the pressures of potential job losses can cause fear and stress, especially when faced with debts like credit card or mortgage payments. Many people, unable to keep track of the escalating monthly payments, are threatened with bankruptcy and foreclosure, which will ruin credit.

One of the biggest problems is keeping track of all the monthly payments for each credit card or mortgage payment. With a market that was so heavily focused on buying now and paying later, consumers need debt management now more than ever. There are several things that can be done to structure payments so that they are affordable on a monthly basis.

Debt Management
A Debt Management Plan is a method for paying personal unsecured debts (such as personal loans, credit cards, bank overdrafts, and store cards, etc.), which may be so late and out of control that they have become too costly and may even exceed a person’s income. Debt management can consolidate those payments into one low cost, affordable payment.

Debt Settlement
Debt settlement, also known as debt arbitration or debt negotiation, is an approach at debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. Often a debt settlement company will negotiate with the creditor in the debtor’s behalf to reduce the overall debts in exchange for an agreement upon regular payments. This is normally only used in the case of credit card debt. Many companies have different ways of going about this method, but the desired end result is a payment that the debtor can afford.

Foreclosure Prevention
Often when a debtor is in over their head in mortgage payments, a debt management company may be able to step in, contact the lender, stop the foreclosure process, and review the loan documents with the lender in order to structure a more comfortable monthly payment.

Often good debt management companies are structured to act as a service to help struggling debtors and may be specialized, such as Christian debt management companies. With the situation of the current economy, many consumers are faced with unexpected, escalating debts and out of control payments. A debt management agency specializing in one of the above methods could be the answer to frustrating financial problems and potential credit disasters.

Reliance, Inc runs http://www.christianinfoondebts.org, an online service specializing in Christian debt management. Art Gib is a freelance writer.

Article Source: ArticleSpan

Filed under: Debt Collection Articles

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