What does debt relief companies do for you? How do they proper? Is what they do legal and does it really stop collection calls? What if a person is already in a payment program where they have access to your checking account and you turn your debts over to a debt relief company? What is the procedures. Is using a debt relief really worth it to get out of debt?
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I don't know for certain but I imagine they are "buying" your debt much like a bank would and charging you more interest then your debt is generating.
As far as the particulars of who does what I not sure but I would be very very wary of signing over any sort of powers of atorny of other such documents.
How about debt transfer credit cards or personal loans? I used this sites and I found it very helpful: Compare home loans with Mozo it always pays to shop around.
Good luck, please post your experince as I am keen to know how it goes
As far as the particulars of who does what I not sure but I would be very very wary of signing over any sort of powers of atorny of other such documents.
How about debt transfer credit cards or personal loans? I used this sites and I found it very helpful: Compare home loans with Mozo it always pays to shop around.
Good luck, please post your experince as I am keen to know how it goes
It probably depends a bit on the company. They will usually assess your situation & consider the options best for yourself. These could include:-
1. Debt Consolidation (Most are or have access to finance brokers)
2. Enter into a Part IX Arrangement - if you have an income of less than $62735 & unsecured debts less than approx $82,000 - you can be considered for this. What happens is they will make arrangements with the financier for a repayment program. In some cases the financier may consider an arrangement such as 80% of the debt to be repaid if they consider this as a better option than getting nothing if bankruptcy is the alternative. This part IX is usually recorded on your credit history however meaning that it will stay there for the next 5 years or so.
3. As Claoudi mentioned some companies will buy your debt & you then repay them. You need to be careful as some of these companies can be ruthless.
These arent ways of avoiding debt nor any easy ways in getting around it. The best option is if you have a repayment progam already to stick with it & hopefully get things can get back on track soon.
1. Debt Consolidation (Most are or have access to finance brokers)
2. Enter into a Part IX Arrangement - if you have an income of less than $62735 & unsecured debts less than approx $82,000 - you can be considered for this. What happens is they will make arrangements with the financier for a repayment program. In some cases the financier may consider an arrangement such as 80% of the debt to be repaid if they consider this as a better option than getting nothing if bankruptcy is the alternative. This part IX is usually recorded on your credit history however meaning that it will stay there for the next 5 years or so.
3. As Claoudi mentioned some companies will buy your debt & you then repay them. You need to be careful as some of these companies can be ruthless.
These arent ways of avoiding debt nor any easy ways in getting around it. The best option is if you have a repayment progam already to stick with it & hopefully get things can get back on track soon.
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