In most cases, consumers are smart enough to realize that they are in over their head in debt. The point of realization may occur later, rather than sooner, but the first step in debt management is always realizing that you need rehabilitation. One of the most prominent myths about fixing your credit is that you need someone else to do it for you. Credit counselors and debt management programs –not to mention unethical debt settlement agents- have raked in huge sums of money by perpetuating the idea that it takes a pro to manage consumer debt. Knowing that this is not true may save you money and empower you as a consumer, in the long run.
Many credit card companies will negotiate with consumers one-on-one, if they know what questions to ask, and are willing to make several phone calls. Oftentimes, these are the same repayment plans or rate negotiations that a professional debt management entity could secure. Additionally, it doesn’t take a third party to refinance your mortgage or take out a home equity line of credit to pay off your debt. There are options for disciplined, resolute consumers to undertake by themselves to get themselves of debt.
The keywords, of course, are “resolute” and “disciplined.” The reason that debt consolidation options exist is because consumers realize that they may not have the willpower it takes to get themselves out of debt single-handedly. Home equity lines are a great way to help yourself out, but they require you to put your home on the line – and, without motivation, you could easily reoccur the original debt, and be paying double bills. It’s good to know your options, but it’s more important to know yourself, and your personal level of commitment to getting yourself debt-free. That knowledge will help you make the right choice as to how to manage your debt – with or without assistance. ■
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