We earn for maintaining our livelihood, but there is a question does our earning meets all our need? We need extra amount, and we prefer credit card or loans for the same. Repaying the debts sometimes becomes difficult because of our never-ending responsibilities. Often, we face certain issues regarding the repayments. The roots of debt become long. Nothing comes for free; creditors expect some interest amount in return. Taking debts is not a wrong decision but only relying on the same is definitely a financial mistake. It always recommended spending after the savings. This will not only strengthen your financial health but also can make you save a certain amount. If your debt is not settled, it may affect your CIBIL score.
Everyone wants to be financially stable, but how? Everything things need to be planned and executed. We have to do cost-cutting for the same. No, doubt debts fulfill our needs but later are unbearable. Below mentioned are the ways regarding how to avoid debts:
- If you have a credit card, never miss the date of the payment – It is advisable not to miss the payment of the credit. There are certain credit card companies which provide the card only after checking the score of your card. Your application may be rejected if you have miss-out paying credit card bills.
- Never use credit constraints for those things which are out of your reach or not affordable – No, doubt credit cards do have a limit. Never purchase any items that are costly, and you cannot pay it through the debit cards. This will be like you are in the middle of the river and you don’t know how to swim.
- Always opt for an emergency fund – Never spend your whole income at once. Try to save the money by transferring it to another account. Make some small transfer but do the same to avoid extra burden.
- Keep the credit card for self-use – When someone else borrows your credit card, you don’t have the ultimate control for the same. They can use it in their own accord. Sometimes, it may happen they will make delay in the payments, and you become the victim.
- Don’t pounce or get attracted towards offers provided by creditors – Creditors daily business is to provide offers and cash back. The individual falls in the trap for the same. If you have one credit card make full use of it rather than getting more cards only for offers and cash back.
- Always give priority to interest – Free or low-interest cards or creditors- Before applying for any credit cards, first, do market research and then make sure you have low interest. Compare the interest with market standards. Because the markets can be volatile any time, keeping a track on the same is important. In low-interest constraint, the amount or credit limits will be less, but you can have an advantage of low interest or interest –free bill payments.
There are numerous vendors or websites which helps in the settlement about our debts. The person or individual opting for the same should go through debt settlement reviews before choosing the company.
- National Debt Relief scheme – This scheme helps in settlement of our debentures with direct negotiation. The person opted for the same marked reviews like there are no consultation fees and cancellation fees. They have 24* 7 customer support including live chat and chat via mail. As per the customer, they take care of the debts related to student loan as well. The encryption of National Debt Relief scheme is secured with various technologies.
- New Era Debt Solutions – The customer says if someone is facing or going through a bankruptcy factor they can rely on New Era Debt Solutions. It is faster in clearing the debts and helps the individual in monthly budgeting. They provide service for unsecured debts like credit cards, loans (signature), etc. but do not provide service for loans related to car or education, mortgage of home including ESI bills.
- Oak view Law group – This group is serving the industry for 7 years and is 5 stars in the eyes of clients. Clients prefer the group as it includes single monthly bill payments and has less interest rate along with calls with respect to collections. It provides legal service like wills, protection against defamation and asks to compare first with market trends and then choose Oak group.
- CuraDebt – The CuraDebt provides a minimum amount of debt settlement. It has facilities like reduction program related to the settlement of debts, but since every coin has two sides, it has certain cons as well which is clearly mentioned in their formal agreement that is less interaction with the customers and does follow the monotonous approach.
- Pacific Debt Inc – No, doubt it is a debt settlement program, it handles account management of every single client, the scheme is affordable and flexible in nature but bit slowly in customer support. Approximate turnaround time is ranging in between 24 months to 48 months. It is not available in all the states and is not feasible for all the consumers.
- Freedom Debt Relief – It is one of the largest debt settlement firms operating since 2002. The customer or clients are delighted with the quality of resources provided by Freedom Debt firm. But it does not provide any personalized account service.
Wrapping things up
Struggling with loans and debt and not able to do anything about is even sadder. There are myths about debt settlement programs like they are costly, high-end payments; it will be again an investment and many more. The clients who have experienced or dealt with the schemes mentioned above and firms are highly satisfied and have given feedback about both the pros and cons regarding the same. Everyone does have their own experience. It is a must to understand and research about the companies before taking any decision or going forward for the debt settlement firm.
Meg is an author at Cinnamon Hollow. She writes on a variety of topics sharing tips and ideas for daily life.