HighlandFinancial.com

Being in debt could sometimes be similar to being in bondage. People who have difficulty in paying back their debts could suffer from a number of serious consequences which can affect their lives in different ways. Their piece of mind, health, status in society and their ability to plan for the future could all get affected by insurmountable debt.

People who are over-indebted and are unable to pay back their debt with their current earnings can seek professional help through a debt review process. A financial expert known as a debt counselor would analyze their current financial situation to see if they are really in a financial strait that requires professional help.

The main criterion used for evaluating a person's need for help is determining whether they are actually over-indebted. This is evaluated by checking to see if the amount of money remaining after deducting all their living expenses from their income is insufficient to cover their monthly dues. If so, they are considered to be over-indebted and would therefore be offered professional help. However, in order to qualify for the program, they should be earning an income that is sufficient enough to cover their living expenses and also have some amount left over with which they can pay at least a portion of their debts.

Once they qualify for debt review, the financial counselor would contact their creditors on their behalf and negotiate a rescheduled repayment plan. The plan would involve consolidating all the loans into a single loan and having the debtor pay a smaller monthly payment which they can afford under their current economic condition.