The average person
carries several thousand dollars of debt.
While this may not be a lot in the grand
scheme of things, it does make a difference
to a person’s creditworthiness if they can’t
pay. If this is where you fall, credit
counseling may be the answer. Here are some
facts about the credit counseling process.
A person with a sizeable debt that is
hard to manage may consider talking to a
credit counselor. A credit counselor is
someone who is well versed in the area of
debt management and repayment. Their job is
to help an individual not only to get out
from under their debt situation, but also to
educate them on how not to end up there
again.
Credit counselors work for the consumer.
They exist to help you work out an agreement
with the creditors to get them their money
and you back into financial shape. A credit
counselor will listen to the particulars of
the credit debt situation and come up with
suggestions for a debt repayment plan.
The debt repayment plan takes into account
your assets, earnings, and ability to pay.
The monthly payment will be based on what
you can pay without causing other bills to
fall behind. These counselors have
established a rapport with many creditors
and know what they will and will not accept
concerning payment arrangements. As much as
fifty percent or more of your outstanding
debt could be forgiven.
Credit counselors usually have backgrounds
in business and/or finance. They also know
how to counsel people in such matters. They
must keep up credit counseling certification
to be recognized as a legitimate
practitioner of this service. Training and
testing are involved in the process of
becoming a certified credit counselor.
Credit counselors will offer information on
credit repair. They advise clients about how
to rebuild credit after they have gone
through debt restructuring. They stress the
importance of reviewing and understanding a
credit report. Most importantly, they
discuss how to manage money wisely so that
debt is not a way of life, but something to
be avoided in the future.
Credit counselors do not repair your credit.
Some people are under the impression that
credit counselors will help to fix credit
after the repayment plan is completed. You,
the consumer, can fix your credit in as much
time as it will take them. Ask for advice on
how to go about the process, but work on
fixing credit on your own. It will be a
helpful learning experience.
Credit counseling services may charge a fee.
Check into the programs that appeal to you
and find out what, if any, fees will be
asked of you. If the credit counselors are
reputable, go with a company that charges
fifty dollars over the one that charges a
higher rate. More expensive doesn’t mean
that the services are better.
Credit counselors are there to help you.
They work with creditors to lower payments
for the consumer. If you have reached the
point of pulling your hair out, give them a
call and find out what they can do for you. Recommended Reading
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