Business and Personal Finance Dictionary

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• DEBT COUNSELLING
  
  Debt counselling can often negotiate down your debt so you are able to clear your debts by paying only a fraction of the actual owed amount.Debt counselling only works if the other parties (your creditors), are willing to negotiate your debt. Basically, most lending companies are willing to take a small, guaranteed lump sum payment over a fragmented payment over many years that may cost more money to retrieveHere is the process that debt counsellors put into place. In short, they will get you to budget so you can escape your debt. Debt counsellors look at your liabilities, your income, any assets you may have and draw up a proposed strategy that you have to follow for you to repay your creditors and get yourself out of debt. They realise that it is easy for a consumer to get themselves into a vulnerable financial position, Getting out of debt is a more difficult task and can you may require some one to assist you.Debt counselling also attempts to educate people about the mistakes they may have made to get into their current financial position. They explain the principles behind money lending, credit and getting into debt. These principles seem basic when they are outlined in a list but often people need to be reminded as many forget the principles. Debt counsellors are usually more knowledgeable in finance and debt than most consumers so if you are being swamped by debt, debt counselling could be a viable option for you to explore.It can be very useful to speak to a debt counsellor to discover your exact options pertaining to your particular financial situation. They may be able to identify a strategy that will help you out of debt without needing to resort to bankruptcy.
  
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