the advent of the credit card and easy to obtain personal loans,
many people find themselves sliding unnoticeably into debt. Many
people have an unmanageable amount of debt and find it hard to
cope with repayments. The repayments can become worse from week
to week, as the debt increases due to interest and charges when
a payment is missed.
People who cannot cope with the amount of
debt they have can seek help from a debt counseling service. A
debt counseling service is a company that advises and works with
an individual or family to control and manage accrued debt.
The main aims of the debt counseling service
are to control the debt so that repayments are manageable and,
if necessary, to repair the client's credit score. Debt
counseling services can offer advice on how to reduce monthly
debt bills. One way this can be achieved is by transferring high
interest credit cards bills to a zero interest or lower interest
card. These cards sometimes offer a low interest fixed rate for
an introductory period. Transferring bills this way can save a
great deal of money.
If you own your own home, then a debt
counseling service may advise obtaining a home equity loan. By
doing this, you will be able to secure a low interest loan. This
is a good option when trying to reduce your monthly debt bills
and lower your overall debt. Personal loans that are not secured
usually have a higher interest rate and are usually last resort
options when borrowing.
The debt counseling service can also help you
establish a long-term debt reduction plan. This plan should be
easy to stick to, ensuring that you maintain and properly use
debt now and in the future. There is no point for the debt
counseling service in helping you clear your debt now if you are
only going to slip back and misuse your debt options in the