If you are worried about your debts spiralling out of control or if your household expenses are getting out of hand, then it may be the right time to find a credit counseling company. Credit counseling companies are designed to help ordinary people like you and me manage, control and get rid of debt. Not only are these companies designed to help you eliminate your debts, but they offer friendly advice on how to keep it to a minimum in the future. Debt elimination is not the only service that credit counseling companies offer. They can also help with bankruptcy, housing counseling and credit reviews.
Some people are wary of going to a credit counseling service for support, they fear the will be ‘told off” or have their wrists slapped for having bad credit, but this simply isn’t the case. A credit counseling service is there to support people lie you, and chances are they have seen people who are in a worse position than you are. Another misconception about credit counseling services is t hat they cost a lot of money, but in fact this couldn’t be further from the truth, as many of these services are completely free.
One of these free organizations are called the “consumer credit counseling services”, and you are likely to find one of these organizations where ever you live. All you need to do is give them a quick call, and one of their representatives will guide you through their process. The only thing they do require you to do is register with them first. You can register with the consumer credit counseling service online, by phone, or simply giving them a visit.
If you find that looking after your finances is difficult at the moment, and you need a little help keeping them in control, then a credit counseling service may be just what you need. In order to find one in your area all you need to do is check out your local telephone book or search online.
SOURCE
Friday, July 24, 2009
Thursday, July 23, 2009
Credit Counseling 101
So many Americans are up to their eyeballs in debt these days, there is no shortage of counseling services available. How can you find a reputable credit counseling service that won't send you right back to the bank? Or worse yet take you to the cleaners?
Look for the seal. The National Foundation for Credit Counseling, known in many cases as Consumer Credit Counseling Service, is the largest and oldest national non-profit credit counseling network. It sets national accreditation standards for credit counselors, and designs policies that ensure free or low-cost confidential services.
There are also for-profit credit and debt management programs out there, but often they charge a fee to participate.
* What is credit and debt counseling?
Counseling sessions — either by phone or in person — can provide education, hope and relief. When you sign up with a counseling service, the service will work with your creditors to either reduce or eliminate your credit card interest rate — something you would not be able to do on your own.
At your initial counseling session, a counselor will go over your budget with you, looking particularly at your relationship between spending and saving. The counselor will work with you on a feasible payment plan to pay off your debts.
These counseling centers also offer education sessions on budgeting, money managing, home planning, etc. — value-added services that can save you from traveling down the same road again as you work to get out of debt.
* Counseling and your credit report
While many credit and debt counseling services do not necessarily report your participation to credit bureaus, if you already have late or missed credit card payments, this information is most likely already on your credit report.
Working with a debt management program is likely to improve your record because you will be making consistent, timely payments. However, if you currently have perfect credit, be forewarned that using a service may put a blemish on your report.
The good news is that it only shows up on your credit report while you are enrolled, unless you declare bankruptcy, which remains on a credit report for up to 10 years. So before you have to go that route, swallow your pride and get out of debt for good.
SOURCE
Look for the seal. The National Foundation for Credit Counseling, known in many cases as Consumer Credit Counseling Service, is the largest and oldest national non-profit credit counseling network. It sets national accreditation standards for credit counselors, and designs policies that ensure free or low-cost confidential services.
There are also for-profit credit and debt management programs out there, but often they charge a fee to participate.
* What is credit and debt counseling?
Counseling sessions — either by phone or in person — can provide education, hope and relief. When you sign up with a counseling service, the service will work with your creditors to either reduce or eliminate your credit card interest rate — something you would not be able to do on your own.
At your initial counseling session, a counselor will go over your budget with you, looking particularly at your relationship between spending and saving. The counselor will work with you on a feasible payment plan to pay off your debts.
These counseling centers also offer education sessions on budgeting, money managing, home planning, etc. — value-added services that can save you from traveling down the same road again as you work to get out of debt.
* Counseling and your credit report
While many credit and debt counseling services do not necessarily report your participation to credit bureaus, if you already have late or missed credit card payments, this information is most likely already on your credit report.
Working with a debt management program is likely to improve your record because you will be making consistent, timely payments. However, if you currently have perfect credit, be forewarned that using a service may put a blemish on your report.
The good news is that it only shows up on your credit report while you are enrolled, unless you declare bankruptcy, which remains on a credit report for up to 10 years. So before you have to go that route, swallow your pride and get out of debt for good.
SOURCE
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