At Debt Busters, we’ll give you the information and advice you need to take control of your financial future. Aside from talking about general budgeting and financial wellness, credit counselling can come in the form of:
- Debt Consolidation
- Debt Negotiation
- Informal payment arrangements
- Debt agreements
How do these relieve your debts? Let’s break down each type to help you understand the best debt solution for your financial situation.
1. Debt Consolidation
Debt consolidation is when you roll multiple debts into a single payment. It’s a smart choice if you’re struggling to balance multiple payments, rising interest rates, or other challenges that come along with having multiple debts.
2. Debt Negotiation
Another option is debt negotiation. This is a simple solution where you negotiate with creditors to lower the overall debt amount or the payback terms. Debt Busters can actually act on your behalf to handle all negotiations for you, making this is an easy solution.
3. Informal Payment Arrangements
If you’re facing endless phone calls from creditors, it’s time to put a stop to it. Similar to a debt agreement, this will allow you to settle your debts at a reasonable price without gaining additional interest on your accounts. This is a temporary agreement that needs to be renegotiated every few months, but it can have a lasting impact.
4. Debt Agreements
Finally, a debt agreement is a legally binding agreement between you and your creditors. It’s a way to repay what you can afford, not the entire amount that’s owed. Your creditor will need to agree to the agreement, and then your interest will be frozen on your accounts. Talk to an expert at Debt Busters to determine if you’re eligible for a debt agreement.