Debt Management Companies

Has your use of credit cards put you into financial difficulties?

Like a growing number of American consumers, you may find that your credit card debt is rising to alarming levels. Right now, it is estimated that the average level of credit card debt for the American consumer is somewhere around $3000 - $8000.

The reasons for this are many. In some cases, it is due to an unforeseen emergency, such as losing a job or medical bills due to family injury or illness. But in most cases, it is simply a matter of overspending, or losing track of the amount of credit racked up and then interest rates taking over. The end result however, is more and more Americans turning to debt management companies for help.

There are many debt management strategies out there geared to help people lower their debt. However, not all debt management companies are the same. Different companies offer different programs, and do not always take their clients interests to heart. Some will hook you up with a program that MAY help, but might not take the time needed to properly analyze your personal situation. Not only that, but there are also scams. So watch out! Many companies want money up front just to analyze your situation. Then, once the money is offered, all you get is a message saying that they cannot help you.

That’s were the Debt Management Advisors come in. No matter how your debt has accumulated, the Debt Management Advisors can help reduce your overall critical debt load without you having to take out another loan. We offer a free consultation, so if it turns out that we cannot help you, you will have lost nothing to find this out. We also offer information about selecting the right program to fit your needs, and what to look for in a debt management company.

To find out more about debt management companies, click here.

Interest Rates

If the level of your debt is a great concern to you, this is probably because you have debt spread out over multiple credit cards. Most Americans have between 4 and 5 major credit cards in their name. The reasons for this are many. In the case of financial emergencies, where income is drastically reduced, many people rely on credit cards to get them through the tough times. Or, people cannot make the payments on one card, so they get a new card to transfer payments from one card to another, to keep their credit rating from being damaged.

In many cases however, it is the trap of low introductory interest rates. If your current credit cards have an interest rate of somewhere around 15%, you may be lulled into applying for a new card which offers an interest rate of 4 or 6% for the first six months. This is especially appealing to people who are planning to make large purchases. This is a good idea in theory, however, if you already have existing debt, paying back the new debt on the low interest card is harder to accomplish than most people think. Six months can go by pretty quick! And when the interest jacks up to around 18%, those cards are often not paid off.

If you are thinking about getting help from a debt management company, here are some tips to keep in mind.

Make sure the company you are contacting takes time to analyze your situation, and give you feedback regarding the different options you have. For example, don’t work with a company that wants you to take out a debt consolidation loan if they don’t give you all the details.

Don't let someone bully you into signing up to a program, if you feel that you are not fully informed about what's at stake. We have listened to our own clients, and many of them talked to other companies before us and were bullied into a contract that ended up causing almost as much harm as good. The Debt Management Advisors do not expect you to be experts about the debt management field, and we understand how intimidating it may seem. What we do expect, is that you get treated with utmost respect and that you are given all the details when making such an important decision, and that is what we offer.

Also, it is important to keep in mind the State that the company is located in. For example, California and Connecticut have the toughest laws for licensing debt management companies. The chances of a company located in these States being scam artists is quite slim. It is highly advisable to deal with companies in these States. In contrast, the States of Florida and Maryland and very lax laws and the majority of reported debt management scams come from "companies" located in these States, avoid them at all costs. The States of New York and Michigan have newly passed laws that make it impossible to deal with debt management companies located outside of State that are not licensed.

We hope that this information has not only helped in making your decision, but that we have also offered you a small example of our good intention and our desire to help you in out of your financial situation.

To learn more about how our program works, click here.

If you would like to contact us for a free consultation or for more information, click here.

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