Debt Management Programs
What you should know

If your accounts are already delinquent, you are about to �lose the farm�, or are facing other personal issues, then the Debt Reduction Made Simple Plan may not be the best program for your family's individual needs.

There are many organizations, some of them non-profit, who can help you.

Most are professionals trained to provide you with an appropriate debt management program for your situation.

However, I have reviewed more than a few "helpful" debt management programs and have found some offers that you really need to stay away from.

It�s easy to get pulled into something that could make your situation even worse in the long run. Especially when you are desperately looking for a resolution.

Be careful!

Some guidelines to help you:

1. Never ever take a consolidation loan with a variable rate.

Most variable rates are based on the prime rate, which you have no control over. You cannot predict the future state of the economy or future prime rates. Therefore, you leave yourself open to disaster should the prime rate go up substantially.

Don�t let them talk you into it, they don�t have a crystal ball either! Your payment will increase if the interest rate increases. You need a constant, unchanging, payment to be successful on the Debt Free Living Plan.

2. Never pay anyone to access their debt management program web site.

They will promise you a solution that is �to good to be true� and if you�re like me you�ll always get the salesman that can �sell eggs to a hen house�.

If they can�t show you what they have to offer without demanding payment first, then something�s just not right.

Even as a seasoned consumer in this area, I fell into this scam myself. I was kicking myself for days. Luckily I came to my senses the next day, but it cost me a $30 stop payment fee at the bank. You can guess I was not happy with that!

These debt management companies usually do not accept credit cards. Not because they don�t want to see you go further in to debt(as they may claim), but because you have better dispute options with credit card purchases.

When they access your bank account, they have the money and you have to wait until the dispute is settled to get it back. For someone on a tight budget, which you should be on, this can be devastating.

3. If you are considering an offer, please do two things first.

a.Always check with the BBB (better business bureau) in the state they do business from. The BBB will indicate at least three important things about the business. *Are they a member? *Do they have any complaints against them. *What is the nature and status of the complaint?

b.Always call the customer service number you are given to verify information.

The big light bulb for my scam was that they hired out their customer service and the customer service could not even access my information for 48 hours. There goes 2 days of your 3 day �right to rescind�.

4. Only turn to debt settlement as a last resort if debt management or consolidation can not help your situation. Most debt settlement programs will require you to take some drastic steps.

If you feel that none of the other options can help you, then consider this option.

Debt settlement usually requires you to quit paying your accounts while you save to settle them one by one. This means that some of the accounts could possibly be in arrears for 6,12,even 24 or more months.

Of course this affects your credit record so be sure this is what you need to do.

If you can find a settlement plan that does not require you to become delinquent, then by all means seriously consider it (I have not found one yet). Of course if you are already seriously delinquent then it really doesn't matter.

I'm not saying don't use this option. Settlement has helped many and will continue to help many more families become debt free.

However, it's not appropriate for everyones situation. Consider the consequences of all options before making a final decision.

Please, investigate all your options first!

Remember, Your Simple Debt Free Living Plan requires that you have a consistent monthly payment for your debt reduction plan. Keep this in mind when making a decision.

GOOD LUCK AND SUCCESS!