Transform Your Finances With Debt Review

At first, you think you can handle it. If you nip a little here and save a little there, you may be able to raise enough to pay off another bill. However, when it gets to a point where the bills are piling up beyond what you earn to pay it off, you should consider debt review. Many people have benefited greatly from the debt review process and gotten back on their financial feet, debt free and with much more knowledge on how to manage their finances in order to avoid debt.

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Debt Review

Debt review is a process designed to assist individuals who are facing the risk of blacklisting and legal action, to pay of the debts and clean up their financial process. Debt review handles all debts arising from housing payments, cars, credit cards and medical bills among others.
Once it gets to a point where one is unable to handle his debts, the services of an experienced debt counselor are necessary to make the important decisions. Debt counselors help by crunching the numbers, determining what needs to be done in order to be debt free and effecting this decision by contacting debtors and drafting a repayment plan.

While under review, the counselor contacts all respective creditors and credit bureaus to inform them of your financing situation. During the review process, creditors cannot take any legal action against you nor harass you through debt collectors and other extreme debt collection methods.
The counselor designs the debt repayment plan and submits it to a payment distribution agency in order to effect the plan. You will receive a clearance certificate once the debts are all paid and the credit bureaus notified that you are no longer under review.

What to do during debt review

The debt review process is a legal way of literally saving you from debt. Therefore, it is crucial that you stick to the repayment plan created by the counselor and agreed upon by the creditors. In case you skip the payment, the entire agreement becomes void and the creditors are free to take any action against you depending on their operating terms and conditions. During debt review, it is also advisable to avoid taking other unsecured loans to reduce the risk of termination from the debt review program. Remember, the debt review process is only temporary and once you complete your payments, it no longer reflects your records.

What to do after debt review

The debt review process should serve as a turnaround point for your finances. You need to start doing things differently in order to avoid ending up in the same situation thereafter. You should review your personal budget, you can even take advantage of having a debt counselor at hand to help you determine how much income you can comfortably live on without digging into your finances.
Once the review process is complete and all debts cleared, you will have a surplus amount from what you were using to pay the debts. You should consider saving this money or investing it in an income-generating project in order to improve your financial portfolio.

Author’s Bio: Sean Miller is a financial expert dealing largely with issues concerning debt and debt review. Visit his blog to find out more about his take on debt.