flickr.com/kateconsumption
Is your debt getting out of control? You should ask for assistance sooner rather than later.
You should opt for consumer credit counseling the minute you realize that you are unable to pay your bills on time, or are unable to settle the monthly minimums on your credit cards. There is no point in reaching the status where debt collectors start showing up on your doorstep every morning to extract their dues.
Credit counseling can give you some ideas of how to deal with the debt. It may also bring some financial restraint in your life. But not all credit counselors are reputable. Therefore, it is important to select the right counseling service.
You should be careful of companies that charge you more than the usual $10 up-front fee. Steer clear of services that offer to pay your debts at little or no money, as well, because such services are most definitely illegitimate.
A good idea is to check whether the organization is registered with either the National Foundation for Credit Counseling, or the Association of Independent Consumer Credit Counseling Agencies.
You should also ensure that the payments made to the credit counseling firm are transferred to your creditors on time. Missing or late payments reflect badly on your credit rating, and if this their regular practice, you are better off without the services of such an unethical institution.
Credit counseling is usually viewed as a double-edged sword. On the other hand, it helps you manage your debts better. However, it sabotages your reputation with creditors. However, it is safe to say that the positive aspects of the service far outweigh the negative. While some creditors may be wary of lending you money again, most of them will still be willing, once you have cleared the loans with the help of credit counseling. Part of the service of a good counseling service should be to assist steer you toward a good credit rating once you have gotten out of debt.
It is important you do your research correctly and opt for a service that does not further deteriorate your credit rating. For example, a company that tags you as a credit delinquent should be avoided, while one that simply informs your creditors about your decision to take up credit counseling, is a better selection.
In most of the cases, credit counseling works, and works fine. Unfortunately, if you are too far into debt and nearing bankruptcy, this service will be of no help to you. It is also critical to curb your spending urges; otherwise, whatever advantages that accrue from credit counseling will be lost.
Credit counseling works. Don’t be afraid to give it a try. You may soon be able to relieve some of the constant problem that often plagues those who are deep in debt.
Tagged with: credit counseling • personal loans
Filed under: Solve Problems