Credit Counseling Services

Like most of us, we tend to NEED items like big screen televisions and a better truck than our neighbor. And why couldn’t we have it all? Interest is low, money is cheap, and you’re being pre-approved for credit cards left and right. Unfortunately, we tend to live in the now and not worry about a future that’s so far away. Until the future happens, you don’t realize you’ve accumulated more debt than you can handle.

Before you think bankruptcy (which is increasingly harder to do), know that there are personal services available to help you cope with your debts. An accredited credit or debt counselor can assist you in finding ways to lessen your debt load. These people specialize in working with you and negotiating with your creditors to set up what is known as a Debt Management Plan to help draw up a budget and repayment plan, often at a lower interest rate that is acceptable to both yourself and your creditors.

Society entitles us to make some mistakes in life, and that we should be forgiven for the occasional personal or financial oversight. Unfortunately, our creditors are less compassionate when it comes to our poor financial situations. They want the money they loaned to you!

Non-Profit Counseling Services in Your Community

There are many credit counseling agencies these days to choose from, non-profit and otherwise. For more than a decade, a non-profit agency named Consumer Credit Counseling Services (CCCS) has dominated the credit counseling and debt management industry. Today, there are many other companies setting up operations to meet the demand for debt counselors. However, not all of these organizations are reputable.

Alerts have even been issued by the IRS and the Federal Trade Commission for consumers to be very cautious when choosing a consumer credit counselor. With the increase of people needing help with their finances inevitably brings out those scammers or shady companies who attempt to make a few more bucks off you. Some charge extremely high fees, while others do not even pay your bills on time. Trust and legitimacy are huge issues, especially since these debt management counselors hold your financial life in their hands.

Reputable Credit Counseling Services

Credit counseling agencies are able to negotiate special programs and lower payments with creditors to save your financial health. When you choose a reputable credit counseling company, it could be one of the biggest decisions of your financial life. Here are some ideas to help you choose:

• Ask as many questions as you can about the repayment plans and how secure of an agreement will it be.
• Check what their fees will total and get it in writing. Read agreements carefully.
• Check with the Better Business Bureau for complaints, and if the issues were resolved or not.
• Check that they are accredited by the Association of Independent Consumer Credit Counseling Agencies.
• Do not work with any company that says that they can erase your bad credit history.
• Ask them where their funding comes from and who regulates them.
• Are their counselors trained and certified; if so, by which counseling association?
• Make sure that they tell you when your payments are due and when they will be paid.