The American Dollar
One industrious American family's focus on a financial goal of freedom. Through worldly personal finance education, here is our story.
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Our Story: Both my wife and I are 27 years old and have gone through financial hell and back. Now we are on track to financial freedom, however we are not financial advisors or professionals, just everyday people. Share our journey from a negative networth and email us if you have questions or comments! :)


Tuesday, July 12, 2005

What should I look for in a debt management company?

There are no genies or fairy god mothers to wave a magic wand on our debt problems, so do not fall prey to debt management companies who promise to remove all of your debt worries in a flash. Many debt management companies will make these exaggerations without even looking at your financial status.

If you have run up debt, it needs to be repaid. All advertisements that claim they can ‘clear your debt, without you having to pay a penny’ are a complete farce. Unless, you opt for bankruptcy or an alternative debt solutions such as an IVA, there is no way that your debt will disappear unless you do something about it.

Do not rush out and sign up to the first debt management company that you find as there are many organisations out there waiting to take advantage of your desperation. Keep a cool head when looking for a suitable company and do not be sidetracked into believing that your debts can be wiped out overnight, even if some debt management advisors tell you otherwise.

What should I look for in a debt management company?

A good debt management company will require you to submit all of your outstanding accounts within 45 days so as they can work out a suitable repayment plan. This will include how much you should repay each month, how long it will take to settle your debt and by how much you can reduce your current repayments.

If anyone gives you a quote without asking for detailed information regarding your creditors, run as fast as you can as these companies usually require a hefty upfront fee. In return, they will do very little to resolve your financial situation. is here!

Emergency Fund
2007 Roth Contributions
$8,000 Total

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