Holiday Bills Too Hot to Handle?
For the many Americans who face a tower of unopened and unpaid holiday bills, it’s time to get their financial lives in order, and if they need outside help, they need to know the right questions to ask.
Making a debt-payment plan
1. Cut out all unnecessary expenses, and instead apply those funds to paying off bills.
2. Always make more than the minimum payment on the highest-interest-rate debt, while making minimum payments on other bills.
3. When the highest-rate bill is paid, add the payment to the next-highest-rate debt until it is paid.
Various companies assist with debt repayment:
* Debt resolution firms negotiate on the consumer’s behalf with creditors.
* Debt consolidation rolls multiple debts into one loan or into a mortgage.
* Credit counseling provides lower interest rates, with a repayment term of five to 10 years.
Questions to ask a debt partner
1. Compensation: Does the company get any form of consideration or compensation from the creditors themselves?
2. BBB: Is the company a member of the Better Business Bureau?
3. Individualization: Does the company provide actual consultations and provide advice/education to consumers free of charge?
4. Free education: Does the company provide educational material, including budgeting and financial advice, free of charge?
5. Background: What is the background of the company’s management team?
6. History: How long has the company been in business?
7. Success: What are the company’s dropout and success rates?
For more information, visit bills.com