123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Debt Compensation: The Most Important Factor Is To Be Realistic With A Refinancing-00-6420

Profile Picture
By Author: rafalinares
Total Articles: 4393
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Credit Counseling: Putting People Into Plans People Cannot Afford. Even worse, the public gets sucked into repayment plans that in our experience they can't afford. These persons spend hundreds of dollars a month on credit counseling repayment plans, which suck away cash that is desperately necessitated to take care of and aid their families. Repayment plans, which nearly guarantee that in the final analysis the only option left, are going to be bankruptcy. You may ask why credit-counseling places don't spend more time making sure that the would-be client can afford the plan. The answer is three-fold. Initial from our experience as bankruptcy attorneys, most persons have not been taught how to budget and because hope runs eternal in most persons. Telling someone that you can reduce, $800 a month, down to $600 is very seductive, and in our experience, most persons when asked whether they can afford the $600 per month (in our example) will of course say "yes" without ever putting pen to paper to estimate the numbers. Any savings is better than none right. Secondly, working up a truly budget of necessary on a monthly basis income ...
... and disbursements it just that. Initial work and it takes time and effort. Third, because taking the time to work up a truly budget of necessary on a monthly basis income and disbursements would reveal the ugly truth being that majority of their would-be clients in truth must lower their on a monthly basis disbursements a whole lot more than the credit counseling agencies could perchance offer. How do we recognise? In our office, time and again, we see persons who have fallen out of these plans. Initial who found out the hard way that they could not afford the credit counseling company's repayment plan.

Putting persons into credit counseling repayment plans that they can't afford, only makes things worse. Humans are left worse off than if they never signed up. It stands to reason that if you pays cash on something you can't afford then you have to take that cash away from paying something else. Humans the cash is taken away from paying things far more crucial than credit card debt. Things like your car payment, house payment, or things necessitated by your children. Humans seen Humans lose cars and homes needlessly because they signed up for a credit counseling repayment plan rather than filing bankruptcy. What they don't tell persons, in our experience, is that when you fall out of one of these credit counseling repayment plans, the credit card companies go back and retroactively add in all the interest, penalties, and late fees that they would have owed. Humans as if you were never setup on the repayment plan.

We are sure there are persons who have successfully completed one of these credit-counseling plans, but we suspect the allocation is very small. From the credit card company's standpoint, credit-counseling programs are always a success regardless of if the client completes the repayment plan. Why? Every month a client makes a payment on one of these repayment plans is a month, the credit card companies take in more money than if the client filed bankruptcy. Just one more month that the client is retained out of the hands of a bankruptcy attorney.

About the Author:

http://www.articulo.org/articulo/15639/fomentar_el_ensayo_de_prueba_y_error_en_la_iniativa_emprendedora.html (I) // http://www.abogadotenerife.com/noticia.php?id=2008-06-07%2022:08:00 (II)

Total Views: 228Word Count: 550See All articles From Author

Add Comment

Investing / Finance Articles

1. The Investor Co - Trade With Confidence
Author: Taramalhotra

2. A Deep Dive Into The Leading Investment Banking Firms In Hyderabad
Author: Verity knowladge solutions

3. Can Foreigners Buy Property In Ajman?
Author: tarek

4. When Will Same Day Loans Online Be Paid Into My Bank Account?
Author: Jockey Ferguson is a financial adviser of Fast Pay

5. The Role Of Exclusive Solar Appointments In Accelerating The Solar Revolution
Author: Shan Tait

6. Wills Vs. Trusts: Key Insights For Effective Estate Planning
Author: Daniel Stewart

7. The Impact Of Financial Institutions Groups On Global Markets
Author: Verity knowladge solutions

8. How Property Investment Professionals Drive Long-term Wealth Creation
Author: Rick Lopez

9. Private Company Registration Bangalore | Company Incorporation
Author: mwseo

10. Ecommerce Loan With Overdraft Facility For Your Business
Author: Tarun

11. Does The Online Application Process For A Short Term Loans Require A Credit Check?
Author: Jockey Ferguson is a financial adviser of Fast Pay

12. The Impact Of Customer Reviews On Solar Appointment Leads
Author: Shan Tait

13. What Happens If You Don’t Use Insurance Money For Repairs?
Author: john

14. How To Earn Money Online Without Investment In Mobile?
Author: john

15. Is It A Good Idea To Give Money To Beggars?
Author: john

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: