Students: Avoid “Debt Elimination” Companies

Companies that offer debt elimination services are mostly scam. Avoid using them at all cost to avoid losing even more money.

08:55 05 May 2013

A lot of people are worried about their debts. That is why, when they see ads from companies offering “sound” debt elimination services, they quickly dial the number in the hopes that they’ll get the kind of help that they really, really need.

Well, let me tell you that these companies can do you more harm than good. Truth be told, there is no easy way to eliminate your debt. But it can be done through proper planning, determination, and by having discipline.

Instead of hiring these companies, which charge hundreds and thousands of pounds, you can do the work by yourself to save money.

First thing to do is to get a clear picture of your finances. How much do you earn per month? How much money you spend? How much money can you use to repay your debts every month?

The key here is making sure that you have money at the end of each month to cover your monthly repayments. If you don’t have it, you’ve got to find ways to make more money. Getting another job and cutting your expenses would really help.

Next step is to talk to your creditors. Be honest. Tell them how much money you can afford to give them per month and ask them to extend the payment terms if possible. Most creditors will accept this instead of not getting paid.

Debt consolidation is also a great idea. Getting a personal loan for example, that has very low interest rate to cover all your debts, will help you eliminate your loans much faster.