Free Debt Relief

A reputable counselor is your best bet when trying to get out of debt.

Many Americans face piles of debt. Since the onset of the recession, thousands have lost their jobs and homes and find it difficult to get back on their feet, with months or even years of unemployment ahead and little outside help available.

Talk to Your Creditors

The first and most crucial thing to do if you are seriously in debt is to talk to your creditors. This basic initial step alerts your creditors that you take your situation seriously, that you intend to pay off your debt and that you wish to with work them to make that happen. Simple communication makes the process work more smoothly and ensures that your creditors do not take action against you because they are unaware of your financial status and plans to resolve your debt.

Choose Debt Counseling Over Debt Settlement

Your debt cannot just disappear. Choose debt and credit counselors over companies claiming to be debt-reduction or debt-settlement agencies. In "Debt Relief Deals 'Preying on Consumer's Trust'," published by MSNBC, the legislative director of the Consumer Federation of America (CFA), Travis Plunkett, is quoted as saying debt-settlement companies "... are promising something they can't deliver." In other words, if it sounds too good to be true, it is. Making one large payment to your creditors does not deter them from demanding everything you owe.

Use Nonprofit Agencies

Nonprofit debt and credit counselors are your best resource if you want to find ways to reduce your debt. Visit the National Foundation for Credit Counseling's website or call it at 1-800-388-2227 to locate legitimate nonprofit credit and debt counselors in your area.

References

• MSNBC: Debt Relief Deals Preying On Consumer's Trust
• National Foundation for Credit Counseling

Resources

• Federal Trade Commission: Advertisements Promising Debt Relief May Be Offering Bankruptcy