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Debt Assistance: DIY or Get Help?

Debt Assistance: DIY or Get Help?
Betsalel Cohen
UpdatedSep 21, 2023
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    2 min read

Looking At Your Finances - Self Help or Professional Debt Assistance

The first question you need to ask yourself is "Do I really know my financial situation?" Before you can tackle your debt problems you need to know how much money you are making, how you are spending it, and how much savings and equity you have available.

If you already have a budget and can easily create a balance sheet, then you have taken a big first step to understanding your financial situation. If not, then take advantage of the many budget apps that help streamline the process of maintain a budget. Take advantage of Budget Guide to learn about the importance of a Budget and practical tips on how to keep a budget.

However, if you find it hard to make sense of your financial situation, or need a push to making the first step, then you should consider getting assistance to deal with your debt through a credit counseling agency.

Finding the Right Debt Relief Programs

Finding the most appropriate debt relief program will very much depend on a number of factors including the amount and type of your debt, your income, expenses, assets, and your credit.

For some, finding the debt assistance can come in the form of taking a loan by shopping around for a cash-out mortgage or a personal loan. In those instances, you would need good to excellent credit, a strong income, and a positive cash flow.

However, anyone struggling with debt will know that the situation is very stressful. Late payments can lead to debt collection letters, debt collector calls, lawsuits, and possibly even wage garnishments, bank levies, and liens. Handling a financial hardship is stressful. Very few of us are experts in the field of debt negotiation. Fortunately, there are professional firms that can help with a debt management program, debt settlement, or bankruptcy.

Get Debt Assistance through Debt Navigator

Use Easy and Free Debt Navigator Tool. It will assist you in finding a debt relief solution that best fits your personal financial situation.

Debt Assistance – Don't Wait

If you are having trouble paying back your debt, then reach out for professional debt assistance.

One good place to start is with your current lender or creditor. For example, anyone having trouble with a Federal Student loan should contact their servicer, and read the government web site about repaying their loans.

If you are having trouble with your mortgage, then reach out to your mortgage servicer and find out the best foreclosure alternative program, whether it is a refinance, modification, short sale, or any other plan they can offer.

If you are struggling with medical debt, credit card debt and other unsecured personal, then you can get debt assistance through a free consultation. Make sure that you get debt assistance through a reputable credit counseling company, debt settlement firm, or bankruptcy lawyer.

Did you know?

Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q2 2023 was $17.06 trillion. Housing debt totaled $12.354 trillion and non-housing debt was $4.709 trillion.

A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.

Each state has its rate of delinquency and share of debts in collections. For example, in Louisiana credit card delinquency rate was 5%, and the median credit card debt was $355.

To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.