One of the reasons why dealing with debt is so difficult – other than the actual debt itself – is sifting through the myriad of debt reduction services that are out there, clamoring for your business with claims of assured assistance. And while the notion of getting outside assistance on your outstanding debt may be tempting, it is vital that you weigh the pros and cons of a service first. After all, it’s your money – something that should always be viewed with great scrutiny.
On the plus side, any fees that are associated with debt reduction services are nominal, and if you are really bad shape, they may get waived. Plus, as long as you take care of your monthly payment on a timely manner, your credit score will not be affected. Additionally, if you have multiple debts to multiple companies, everything will be streamlined.
On the other hand, the principal amount of your original debt will not be reduced. In other words, the interest on an outstanding debt of $10,000 will remain at $10,000, even though the interest associated with that amount may be reduced. If you are consolidating debt from other resources, this could be an issue especially where monthly payments are involved. Many people have signed up for these services only to find the resulting monthly payment amount is too high.
Ultimately, the decision that you feel is the right one in this situation hinges on what you feel most comfortable with doing. While some people may view a debt reduction service as an easier way to climb out of the debt cycle, others may find a debt reduction service to be too pricey to continue in the long term. From an outsider, there is no right or wrong answer. That’s a determination that you and you alone must make.
Best Debt Reduction Services 