Pageviews Since May, 2012 (That's when I added this view counter) Website has been up since 2007

Friday, April 13, 2012

Debt Counseling: Answers To Some Credit Problems

If your paycheck runs out before the month ends, if most of your mail is credit card bills, if you find yourself borrowing money for food and gasoline, if your rent and car payments are frequently late, you probably would benefit from debt counseling.

If you have held off from seeking help from a debt counselor because you were afraid that your creditors or others would find out, rest assured that a counseling session with a debt management agency must remain strictly confidential according to the Fair Credit Reporting Act.

You can access a debt counseling session by phone, in person or online. When you meet with a counselor, they will ask you to verify some information about your current financial situation. They will review your present financial status and discuss some possible strategies for more efficient spending.

A thorough analysis will be done on your income, living expenses and present debt. With this analysis, they will help you to determine if your present income reasonably meets your monthly expenses and debt obligations. Suggestions for improving your income/expenses ratio will be offered. This may include cutting back on needless expenses or even taking on a second job if necessary.

After the financial analysis is complete, a debt counselor will advise you how to set up a budget and plan of action to better your financial status. Included in the plan will be a section for reducing debt and building savings. You will receive good advice on managing your money and using credit wisely.

The objective is not to scold or reprove for any past unwise decisions, but to educate and assist the individual in gaining control over their finances. Debt counselors teach individuals how to successfully manage their money, balance their budgets and get out of debt.

If you wish, debt counselors can set up a Debt Management Plan for you that fits your particular financial needs. With this plan, your debt counseling agency will contact your creditors and attempt to negotiate with them for lower interest rates and reduced monthly payments.

Your debts will be compiled into one account and you will be asked to voluntarily submit an agreed upon amount with the agency each month. The agency will then send out specified payments to your creditors until all your debts are paid off. In most cases, this service is either free or at a very low cost.

You and the creditors benefit because in some cases, they might not receive their money otherwise. Debt counselors are professional Certified Consumer Credit Counselors that provide caring, compassionate advice to those who are experiencing difficulties with their financial situations.

If you are having difficulty with debt management, you are not alone. Reportedly there were approximately a half a million people who sought credit counseling from the Consumer Credit Counseling Services across the US last year.

With the economy in the shape that it is in right now, a whopping 700,000 are expected to seek help from credit counselors this year.

No comments: