People who are in a hurry to get rid of debt sometimes make the wrong assumptions and choices about their debt relief plan. If you think that the current plan you are working on is not working for your financial situation, then it may be time to think about shifting your debt efforts to another kind of program.
One of the popular shifts happen to those enrolled in a debt management program. After a few months into their debt management plan or DMP, they find themselves wanting a bigger reduction on their debts. This, of course, signifies a needed shift to a debt settlement plan.
In a debt management program, the debtor hires the help of a credit counselor who will assist them in creating their DMP. This is an effective debt relief plan - but only for those who wish to consolidate their debts into one simple payment plan. If you can afford to pay for the minimum payments and you have a steady income, this is the right course for you to take. The debt professional you will be working with can assist you in lowering the interest rate on your debts and possibly waive off any penalty charges. Unfortunately, that is as far as it goes. If you realized that you need a lower monthly payment scheme, look into debt settlement.
Debt settlement can help you lower your monthly payments because you will negotiate a settlement amount with your creditors. This is lower than your outstanding balance and if they agree, you only have to pay for this amount and after that, the balance will be forgiven.
If this is more suited to your financial capabilities, you can simply shift from one debt plan to the other. To accomplish this, you need to inform the debt management company that you are currently working with. They could try to retain you by coming up with a lighter payment scheme. Take time to listen but if you know that you cannot afford it, then ask them if they have debt settlement services. If not, then go look for another company.
Once you decide to go with another service, the debt management company you used to work with will get in touch with your creditors to let them know that they will no longer represent you.
Before completely severing ties, you need to ask for a report so you are kept up to date on your recent payments and current balance. This is something that can help the debt settlement company that you will transfer to.
If you wish to know more about how debt settlement can assist you, get in touch with National Debt Relief. They have debt professionals on standby to assist you of any concerns about debt relief.