It is quite easy to lose track of your expenditures especially when there is an emergency. You may thus find NCA knocking on your door once you have paid off the medical bills with the loan. This means that you are debt-ridden according to the National Credit Act. The solution to this is to seek help from a renowned debt management company. The debt managers will help you out by devising a strategy that will easily solve all your debt related problems.
Before enrolling into an authentic debt management company you should make sure that you have compiled all your paid and unpaid bills along with monthly income and expenditure. Let’s look at some attributes you should expect from a good management company.
- The debt manager will first and foremost conduct an interview to evaluate your monthly income and expenditures. Don’t forget to include utility, rent, and medical bills along with your credit card bills.
- The manager will then check out your credit card score and verify the information with you. If you abide by the guidelines laid down by the debt counsellor you will soon become debt free.
- The counsellor will also suggest where you can decrease your expenditure and thus, increase your savings. This process will help you to stow away the necessary amount to be paid on a monthly basis whereby you will have a healthy saving.
- The debt manager will first assess your situation and then decide a strategy (debt counselling or debt consolidation) that will suit you best. Debt consolidation, unlike debt counselling, involves taking a new loan to pay off the previous loans.
- The debt manager will negotiate with the creditors on your behalf. You will find that the rate of interest has considerably lowered than before. The creditors will either approve of the debt manager’s decision or make a counter proposal. This will follow further negotiations with the creditors. Finally, you and your creditors will have to agree to the terms that will include payment through monthly instalments and the time of the process.
- Once all the concerned people have agreed to the terms, the debt manager will most probably ask for your bank details so that the monthly payments will be done automatically from your account. The payment will first be received by the credit counselling agency and then, it will be disbursed off to the creditors.
- The debt manager will send the agreement to you through the regular mail or email. The process starts once it has been signed and mailed back.
- Both the credit counselling agency and the creditor will give you monthly statements. You should compare them to ensure there are no discrepancies.
- If any debt is paid off early then also the monthly payment remains same. The extra funds will be equally split among the other creditors for faster debt recovery.
With these tips, you are now better equipped to handle your debt and seek out a registered debt management company.