Is your debt out of control? You should ask for help as soon as possible instead of waiting.
You should get credit counselling as soon as you realise you can't pay your bills on time or can't pay the minimums on your credit cards every month. There's no reason to let things get so bad that debt collectors start showing up every morning to get their money.
Credit counselling can help you figure out how to deal with your debts. It could also teach you how to handle your money better. But not every credit counsellor is a good one. So, finding the right counselling service is important.
You should be wary of companies that charge you more than the typical $10 fee up front. Also, stay away from services that offer to settle your debts for little or no money, as these are almost certainly scams.
Check with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies to see if the company is registered with them.
You should also make sure that the payments you make to the credit counselling company are sent to your creditors on time. Your credit score goes down if you pay late or don't pay at all. If this is a common thing for them to do, you're better off not using their services.
People often see credit counselling as a two-edged sword. On the one hand, it helps you get a better handle on your debts. On the other hand, it makes you look bad in the eyes of creditors. It's safe to say, though, that the good things about the service far outweigh the bad. Even though some creditors might be hesitant to lend you money again after you have paid off your debts with the help of credit counselling, most will still be willing to do so. After you have paid off your debts, a good counselling service should help you work toward getting a good credit score.
It's important to do your research well and choose a service that won't hurt your credit score even more. For example, you should stay away from a company that marks you as a credit delinquent. Instead, you should choose a company that simply tells your creditors about your decision to get credit counselling.
Credit counselling works well and works most of the time. This service won't help you, though, if you have too much debt and are close to going bankrupt. It's also important to stop spending too much. If you don't, any benefits you get from credit counselling will be lost.
Counseling about money works. Try it out without being afraid. If you have a lot of debt, you may soon be able to stop worrying about it all the time.
