More than anything, the debt relief knowledge can prove to be one of the greatest tools for you. How?
When there is a need to clear your doubts or in case someone is trying to play a trick on you, or misleading you by sharing false information, it’ll be this knowledge which will be there for you as your greatest ally.
This post will share three distinct things, which will reflect vital information for you to rectify or confirm the debt relief facts that you already know: Here you go:
- Different bill types that you can enroll in a debt relief program.
- Things to conduct while in a program.
- Learn the facts about Telemarketing Sales Rule (TSR).
What types of debts can be resolved via debt relief
You must realize that there are certain qualifications that you have to adhere to when you are in need of a debt relief option. Though every option is effective but you need to be financially qualified in order to gain maximum benefits.
This can be done by conducting proper analyzation of your financial capabilities as well as the types of debt that you have. Therefore, you will be able to figure out the ideal program type that you can enroll in.
Here’s an example for you, people having secured debts are beyond the assistance of debt settlement. This program engages the activity of defaulting on payments in order to prove that you are in no situation to pay off your debts.
The key idea behind this is to pose a threat of bankruptcy if the creditor will not trim down the outstanding debt. In the case of a secured debt, this doesn’t work because here, the lender is the one who threatens you with the collateral that you put up as a necessity for the loan.
A secured loan works best with the debt consolidation loans while debt management and debt settlement can agree to credit card debt, cash advance loans, unpaid utility bills, and medical bills.
What to do while in a debt relief program
With the knowledge of different debt types that you can use to enroll in certain programs, let’s take a look at some tips to ensure a successful venture of becoming debt free.
First thing first, stop piling on more debts. If needed, do keep your credit cards locked up. It helps to stay committed to living within your means. That leads to developing a good habit of using cash for every purchase. Another thing to learn is sending payments on-time to evade the penalty charges. What makes this even more challenging is the temptation to spend more as your debts go downhill.
In addition to this, you need to make sure that you abide by the course of actions that are set according to your debt relief plan. That includes a debt management plan, a payment plan, or a budget plan. Most importantly, let the guide work – especially when you have shown that handling your finances is not your turf.
What you must know about the TSR
If you have decided to opt for a company for effective debt relief efforts, make sure that you are more than familiar with the concept of your rights as a consumer. Same goes for anything which involves money, as scammers exist to take away your hard-earned money.
According to the Telemarketing Sales Rule, debt relief companies are barred from asking you for any type of upfront fees. You should remember that no genuine company will ask this. In case there are fees involved, it has to be charged after the success of the program.
Make sure to evaluate what they promise and deliver. They should tell you about what you should expect and they must stick to that. If you need to make payments to the account that has been set by the debt relief company, then make sure that it is well protected. Apart from this, you should also sustain complete control over it.
These are the vital considerations as you land on the decision of using debt relief to get out of the credit jail. Remember that you should avoid going deep into debt in the first place. If not, you may get stuck with the same situation in the future.
There are a number of debt relief options available, but to find out the optimum one according to your debt situation is the best approach to relieve you of your credit problems.