Walter Akolo Blog | 7 Things You Should Consider When Choosing a Debt Repayment Plan | Talkmarkets - Page 3

Walter Akolo

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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

On the other hand, complicated debts are seldom solved with consolidation plans. In addition, you should be committed to honoring the obligations of debt consolidation plans. If you find there is sufficient money left after paying your expenses and savings, it's likely that you are in a position to adjust your lifestyle and pay the debts on your own.

Closing your existing accounts

When you agree to work with a debt management agency, they will require you to terminate your existing accounts while refraining from acquiring others when the debt consolidation plan is active. While this can be a tall order for people used to the convenience of credit cards, it has its benefits. The idea is to have you adjust unhealthy spending habits that may jeopardize the debt elimination plan.

As a mitigation measure for emergencies, most agencies will grant you the permission to hold one card that can save the day. However, this has to be a card with low-interest rates and that can be used for multiple purposes.

You have to diligently report your accounts

When you are using an agency to handle your debts, you have to help them to accurately track the outstanding balances. Basically, these agencies keep track of all principal balances on your accounts but not the interest rates accrued by the various accounts.

If you fail to submit the creditor’s statements to the debt agency, you will be surprised to find that the reports generated by the agency are very different from the actual situation. Therefore, take it upon you to help the agency reconcile all your accounts.

Final words

When you take too long to deal with your outstanding debts, you may be surprised to find that available options are quite a few. Instead of settling for bankruptcy which carries adverse effects that last for many years, a debt consolidation plan can do the trick. Nevertheless, you have to be willing to go through the entire process which may take several years to complete.

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