Almost anyone can get into debt, but getting out is much harder. In some situations, the only way for a person to get out of debt is with the help of a credit counsellor. Many of these services are free and can help you make a plan to pay off your debt without adding to it.
Counseling services come in a number of different forms. The first only gives advice and direction. They will look at your current financial situation and the different debts you owe.
Then, they put together a plan to help you deal with your debt based on the information you gave them. The plan will have different parts depending on how much debt you have at the time. They don't do anything, though, so it's up to you to carry out the plan.
Some debt counselling services do more than just help you make a plan. They will talk to the people you owe money to and try to get you a better deal, like a lower interest rate or a discount on how much you owe.
They will set up a payment plan for you, and you will have to pay them the amount that must be paid out each month on your behalf. Then, all of your debts are paid off with that money.
This kind of service is helpful if you find it hard to stick to a plan to pay off your debts without specific instructions or if you don't have the willpower to make the payments every month instead of racking up more credit debt.
Some services that help you with your credit will also help you make a monthly budget. This can be a big help for people who can't stop spending or don't keep good track of what they spend.
Do your research before choosing a service to help you with your credit. Some shady businesses may charge you extra fees or not give the money you give them to the right people, so make sure you get references and know the service you're dealing with is real.
