Why Should You Go For Credit Card Debt Counseling

credit card debt counseling
by MoneyAware

Why Should You Go For Credit Card Debt Counseling
Credit card debt can be overwhelming, especially if you are behind on payments and are being contacted by collection agencies. Credit counseling agencies can help you provide options and recommendations, potentially saving you money and time. To make the most informed choice about whether credit card debt counseling may be a viable option for you, you need to know what credit counseling is and what benefits it may offer. Credit card debt counseling (also referred to as credit counseling or debt counseling) is confidential and professional advice, guidance and recommendations provided by a credit counselor certified by the Association for Financial Counseling and Planning Education (AFCPE), a non-profit industry governing organization. The goal of credit/debt counseling is to provide relief from debt distress by evaluating one’s complete financial situation to find the most appropriate solution that may be a debt management/repayment plan, bankruptcy or housing/mortgage counseling, or referrals to social agencies & organizations.
A consumer credit counseling service is designed to assist consumers who are overwhelmed with unsecured debt and need assistance with renegotiating the debt to get lower interest rates and monthly payments. CCCS (consumer credit counseling service) attempts to make debt manageable while keeping consumers out of bankruptcy, if possible. Their services often include teaching individuals how to better manage their debts, negotiating with credit card companies for lower interest rates, and balances on consumer debts and mediating between consumers and credit card companies to create reasonable payment plans. In short, they can merely help you communicate with your creditors and recommend a plan of action. It is then up to you to carry out that plan. Although many credit counseling services are nonprofit, you will still be expected to pay for the service. These costs cover overheads for the company and payments for employees. It is advisable to sign up with a credit counseling agency when you cannot manage or if you are confused as to what to do with debts incurred. By consulting with a credit counseling agency you may be able to relieve the burden of your debts and repay your obligations without filing for bankruptcy.

When seeking financial advice from a credit counseling agency, it is important to work with people that you can trust. Because of the sensitive nature of your problems, you will want to know that the credit counselor you are speaking with will handle your information with discretion and integrity as well as treat you with respect. You may like to check their record with the Better Business Bureau (BBB) and determine if they have a satisfactory rating. You may also want your counselor to be appropriately trained and certified. Also, if the organization works with other agencies, it is advisable that you make sure those are reputable as well. Several agencies which are not even reputable charge dollars by the hundreds in fees, none of which goes to your creditors. So it is generally advisable to go for a reputed agency. Make sure the agency alerts the credit bureaus about your having signed up for the credit counseling program. Otherwise, the creditors may put a black mark on your credit report. Hence the agency you go to for debt relief should prevent this from happening.  Some services provide you with additional benefits like budgeting tips and newsletters to assist you in becoming financially stable once your debt has been paid. By being diligent and persistent, you can get free of debt after some time. You must make a decision after giving it much thought since you need to find a dependable credit counseling agency that will devise a debt relief plan especially for you according to your needs.

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