Are you facing a poor financial situation and find it difficult to manage all your debt and credit on your own? If yes, then it may be time to look at options to help you set yourself free from the debt trap you have created. By seeking the assistance of a reputable consumer credit counselor, you can get help managing your debt. Credit counseling agencies can also educate you on financial management basics, such as making a budget or making your money stretch farther.
Is Credit Counseling Right for You?
A credit counselor can work with your creditors on your behalf to reduce both your interest rate and minimum payment on your credit card. In this way, you will be able to settle your dues effectively and improve your credit score.
If your attempts to negotiate with your creditors have failed to give the desired results, then you can try and work out a payment plan before seeking the services of a third party. But, even if this fails to yield the desired results, you can seek the help of a reputable credit counseling agency to help you overcome your financial issues as quickly as possible.
Even if you are thinking of filing for bankruptcy, the bankruptcy law has made it mandatory to receive credit counseling from a creditable credit counseling agency within 180 days of filing. Avoiding credit counseling will prevent you from going ahead with your bankruptcy filing.
Working With a Credit Counselor
You can use sites like www.nfcc.org and www.aiccca.org to find the best credit counseling agency to suit your needs. Your credit counselor will inform you about your negotiated monthly payment after speaking with your creditors. At this stage, you should be clear regarding the actual payment that will go to your creditors and the amount that will be retained by your credit counselor as a fee. You should also follow up with your lenders and creditors to know whether they are receiving payments from the credit counselor or not. If you miss more than two payments, your creditors can drop you from the program and your interest and payments may return to their original rates.
Credit counseling can help make your debt more manageable and gradually improve your credit score as your payments are reported on time. By staying with the same credit counselor for two to four years, you can enjoy debt recovery and an improved credit score. Credit counseling is the best way to overcome your financial crisis and start your life afresh. To find out more about the benefits of credit counseling, look online for agencies near you!