Walter Akolo Blog | 7 Things You Should Consider When Choosing a Debt Repayment Plan | Talkmarkets - Page 2

Walter Akolo

Huffington Post Author

Walter Akolo is a freelance finance writer, blogger and internet marketer. He has been helping business by writing professional copies of engaging content that convert. Walter has more than six years of experience in writing and also teaches students about writing & blogging.

7 Things You Should Consider When Choosing a Debt Repayment Plan

Date: Sunday, April 22, 2018 5:48 PM EDT

Sometimes getting the appropriate agency can be daunting

The advantages of settling on a partner with a good reputation can never be stressed enough. It is disheartening to find some agencies in the market with minimal customer interests, especially when you consider the clients are already overwhelmed with debts.

However, most non-profit counseling organizations tend to be better. Basically, these are associated with the NFCC and FCAA. Before admitting any member, these organizations are very strict in their vetting process and they make sure all members have well-trained counselors who meet all the ethical requirements. But this doesn’t mean you should overlook the importance of an agency that forwards your payments to creditors on time.

Debt management plans may alter the lenders' perception of you

While you are putting something towards your outstanding debts regularly, there is a high likelihood that the amounts you are paying are below the set minimum. Prospective creditors will eventually realize that you’ve been repaying the quick loans via a debt agency which implies that you are still struggling with your finances.  As a result, it is normal for a lender to decline your loan application until you’ve cleared all your debts.

Debt management is in no way identical to bankruptcy but almost every lender puts them in one category. But when you compare the two, it’s better to have a debt repayment plan as opposed to filing for bankruptcy. The obvious reason is that clearing your outstanding debts will pave way for better credit scores which is not the case with bankruptcy.

It’s not a one size fits all arrangement

Before making a decision, it is prudent to first evaluate your situation to determine if it is a viable option. To start with, you need to study all the debts you are having and decide if a debt repayment plan is a great approach. If you are struggling with unsecured loans like personal loans and credit cards that come with high interests, this might be a great option for you.

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