Debt Relief Tools & Resources

It’s High Time for Debt Relief
Are you finding yourself falling further behind in your bills? Are the interest charges and late fees on your credit cards starting to mount up? Maybe you are finding it more and more difficult to find the money to pay your mortgage or rent every month. If these scenarios sound familiar, it is definitely time for you to seek some relief from your debt situation.

Whatever you do, whomever you go to for advice, whatever websites you visit; take the time to do your homework. There are unscrupulous companies that want to take advantage of the vulnerable position that you are in. On Debt Consolidation Central.com, you can learn about the basic debt relief tools of avoiding bill harassment, how to consolidate your secured and unsecured loans, how to choose a legitimate credit counselor and how to create a budget that fits your lifestyle. You should also bookmark the website for the Federal Trade Commission www.ftc.gov for reliable consumer financial information. The resources found on these pages are meant to inform you of the many options available for your debt relief.

Debt Relief Options
Some debt relief tools that you will want to investigate include:

• How to establish a realistic budget
• Credit counseling
• Debt consolidation
• Bankruptcy

Budgets
The first thing to do when preparing a budget is to assess how much money is coming into and flowing out of your household each month. You will then need to set up a list of both your fixed expenses and your variable expenses. The main idea of a budget is to insure that you have allotted the necessary funds to cover such basic needs as housing, food and insurance. If you are trying to pay off debt, this must also be included in your budget plan.

Credit Counseling
If you do not have the discipline to stick to a budget and are unable to work out a payment plan with creditors, you may want to consider a reputable credit counseling agency. A credit counseling organization will give you a personalized plan to manage your finances and offer realistic avenues to debt relief.

Debt Consolidation
You may be able to lower your credit costs by consolidating your debts through refinancing your home with a second mortgage or equity line of credit. However, since you are securing your loan with your house, if you cannot make your payments on time, you risk losing your home to foreclosure.

Bankruptcy
Filing for either Chapter 7 or Chapter 13 bankruptcy should be your last resort since the outcome is long-lasting and far-reaching. A bankruptcy filing remains in your credit report for ten years and can make it difficult for you to purchase a home, obtain life insurance or get a job. However, it is a legal option that offers a fresh start for people who cannot find another way out of their debt.

Know Your Credit Scores
When you apply for any type of loan, your lender will want to know your credit risk level. Most lenders will look at yourcredit score, a statistically ascertained number that helps a lender decide how likely it is that they will get repaid in a timely manner. Before applying for a loan, you should get a copy of your credit report; all U.S. consumers are entitled to one free copy of their credit report annually. You can receive yours at www.annualcreditreport.com. Out of a possible 800 points, a score of about 725 is considered average and 700 is considered good. The best interest rates and fastest loan approvals go to those people whose scores are over 770.

Other considerations for credit approval are based on the amount of debt you can reasonably handle based on your income, your overall credit history and your employment history. Taking steps to improve your credit scores can help you qualify for better rates from lenders. The three credit reporting agencies are Experian, TransUnion and Equifax.

Know Your Rights
• The Fair Credit Reporting Act is designed to help ensure that credit bureaus furnish correct and complete information to businesses to use when evaluating your application.
• The Equal Credit Opportunity Act prohibits credit discrimination on the basis of sex, race, marital status, religion, national origin, age or receipt of public assistance. Creditors may ask for this information (except religion) in certain situations, but may not use it to discriminate when deciding whether to grant you credit.
• The Fair Credit Billing Act and Electronic Fund Transfer Act establish procedures for resolving mistakes on credit billing. These documents may contain mistakes that could damage your credit status or reflect improper charges or transfers. If you find an error or discrepancy, you should contest the error immediately.
• The Fair Debt Collection Practices Act applies to personal (non-business) debts. This federal act prohibits debt collectors from engaging in unfair, deceptive or abusive practices while collecting these debts.

We hope that you have found the above information on debt relief tools and resources helpful. For help in discovering more debt relief tools and resources, please take a moment to fill out the form on the bottom of this page to speak with a member of our professional debt consolidation staff. You will be happy that you took the time to secure your financial future.