During commercial breaks, you often see ads for credit counselling. You might think you have too much debt to bother with such a service. But you would be better off if you took the time to find out how having an independent counsellor look at your debt could help you. Debt counselling is not for people who have so much debt that they can't get out of it. In that case, you might want to talk to a bankruptcy trustee. But if your debt isn't too bad, you might want to visit one of these credit counsellors in your area.
Credit counsellors help you communicate with your creditors. They talk to your creditors and try to get them to lower your monthly payments. Depending on your situation and how well you handle your credit, they might be able to get some of your fees lowered or taken away. But their main job is to come up with a way to pay back your debts that you and your creditors can both live with. Creditors don't like to accept smaller payments, but they'd rather have a smaller amount than have you leave town still owing them the full amount. Your creditors will work with the credit counselling agency to protect their money and give you some breathing room.
But if you decide to get help with your debt, you'll need to think about a few things before you choose the right credit counselling service. Pay close attention to these four things as you search for good advice:
It's important that the company has qualified workers who know enough about money to help you. They don't have to be accountants, but they do need to know the basics about credit counselling.
Is the company recognised? Most groups that set standards charge money to accredit a business, so some businesses stay away from this. On the other hand, some companies use the same groups that set standards to hide their shady business practises. And it can be hard to tell who is telling the truth. So start with the agencies that have been approved, but check them out before you pick one. But keep in mind that many of the organisations on the list are not-for-profits.
How much they charge. Any good credit counselling service will only charge a small, reasonable monthly fee, usually around $30, for their services. But you might also find that some charge an upfront fee of around $50.
Application to a service that helps with credit. When you apply for credit counselling services, the company should be clear about how much it costs, what services it offers, and how long it takes to process your application.
Before you start working with a good credit counselling service, you should keep these four things in mind. Once the application process is over, you should be well on your
managing your debt. This means that you can lessen the stress of having a lot of debt.
