Consider talking to a credit counseling service if you have a sizable debt that is hard to manage. A credit counselor can help assess your financial situation and formulate a doable plan to repay your bills. By enrolling in a debt management program you’ll be helped to get out of debt no matter what debt level you are in.
Debt counseling services offer advice to help save your credit rating, your car and your home. They do this through debt reorganization. This is a way to help you get out of debt over a longer period and at a payment schedule that you can afford. Read on to learn types of credit counseling agencies and what services that they offer to help you.
For-Profit and Non-Profit Credit Counseling Services
There are two types of credit counseling agencies, one is a profit-making company and the other is a not for profit organization. Both offer options to resolve pressing credit situations, which may range from making informal arrangements with creditors to debt consolidation to recommendations of declaring bankruptcy.
The major differences between for profit and non-profit services are in the fees they charge, the range of services they offer and the qualification of their staff. Non profit organizations are usually cheaper and for profit companies tend to have more experienced staff. But the end product will likely be the same regardless of which type of organization you choose.
Debt Management Plans
A debt management plan or program is the main service of a credit counselor. If you don’t have enough money in your debt repayment plan, to increase payments to creditors you may choose to negotiate with them. Creditors are often willing to accept reduced payments or lower interest rates to decrease your chances of filing bankruptcy.
Credit counselors can help you set up a debt management plan. They negotiate with creditors, on your behalf, to lower interest rates and payments than you could have gotten on your own. Once negotiations are complete, you send one monthly payment to the counselor, who then forwards the proper amount to each of your creditors.
Other Credit Counseling Agency Services
Reputable credit counselors will offer more than just debt management programs. While these programs work for some people, they aren’t for everyone. Some just need help creating and sticking to a budget. Others would be better off filing for bankruptcy.
The counselor also offers information on how to rebuild credit after you have gone through debt restructuring. They do not repair your credit. But you can ask for advice on how to fix your credit after you’ve completed your repayment. By learning to check your credit report and manage your money wisely you’ll be able to stay out of debt in the future.
So, if you are having troubles paying off your debt consider contacting a credit counseling service to help you pay back the money you owed and to help you change your lifestyle so that you can get out of and stay out of debt.