Reduce Debt Without Credit Counseling - 5 Smart Moves

Being in debt can feel like having a heavy weight chained to your foot, dragging you below the surface and drowning you in unpaid bills and a deteriorating credit score. Here are 5 smart moves to unchain yourself from that debt without resorting to credit counseling.

Move #1: Ask your credit card company for a lower rate: Your credit card company wants to keep your business. After all, if you carry with them a large balance at a high interest rate, you are paying them a hefty fee every month. Try calling them and asking them to reduce your rate, explaining that you have received lower-interest offers from other companies and that you are considering transferring your balances away unless they can match those lower rates. Believe me, your credit card company would rather keep some of that income than have it reduced to zero. Remember, there is no need to get nasty or threatening with them. Just be matter of fact about it and see what happens. If they refuse, go ahead and apply to other, lower-interest cards.

Move #2: Improve your credit score: A 50-point improvement in your credit score can save you $1000s per year in debt payments by making you eligible for lower interest rates. Do whatever you can to improve your credit score, including ordering your credit reports on the Internet and quickly correcting any errors you may find there.

Move #3: Pay yourself weekly: You may already have a monthly budget. If not, go ahead and prepare one. Then, divide it into 4 and make it a weekly budget. Now, pay yourself and your spouse a weekly allowance. Once your weekly allowance is gone (even if it is only Wednesday!), agree that you will halt all further purchases until the following week. This is a hard one to implement in terms of willpower. I suggest having 2-3 savings accounts and having one account for each week of the month. This is an easy way to keep track of how you are doing that week in terms of sticking to your budget.

Move #4: Keep a spending diary: Each evening, write down roughly how much you spent that day in a special spending diary or notebook. Create three columns: one for the name of the item, one for how much you spent, and one with a comment that labels the item “need” or “want.” For the wants, write a sentence or two about how that want was more important than your getting out of debt. By doing this, you will become much more self-aware about your spending habits.

Move #5: Set debt pay-down milestones: Everything is easier to achieve if you have clear goals in mind. Write down only your total unsecured debt. Now, think about the next 6 to 24 months and determine a realistic timeframe during which you will pay down that debt. Next, set two or three pay-down milestones during that time period and write down what your total debt balance will be by each milestone date. Then, as time passes, do periodic checks to make sure that you are on track and make adjustments accordingly.

To loosen the heavy weight of debt from your foot without resorting to credit counseling, you need to become more aware of your spending habits, improve your credit score, be smart about how you spend, and set goals for paying down that debt. You will soon be sitting pretty and debt-free.

Trapped In Credit Card Debt? Counseling Could Be The Answer.

It is important to understand right in the beginning that credit card spending is the most common cause of debt. This is mainly because credit cards offer you convenience while spending your money. However, the negative side of credit cards is that they charge you an interest rate which is very high. Moreover, right from the moment you use your credit card, the interest meter starts running. It is similar to sitting on a potential debt time bomb which is waiting to explode, as soon as you miss your credit card payment.

Defusing this crisis is only possible by either following a strict financial discipline or avail the services of credit card counseling centers. Most people believe that they can pay their credit card firm only on monthly basis. However, the fact is that you can pay them as often as possible. So go ahead and pay your credit card company on regular intervals. We recommend that you pay them on weekly basis. Paying every week means that you pay a lesser interest rate and this is because, every time you pay the remaining balance is reduced. Also, small payments on weekly basis are easier to make as compared to bigger monthly payments. The above approach will help you manage your credit card payments in a better manner. However if you find yourself in a serious problem due to your credit card debt, we advise that you consider approaching Credit Card Counseling Centers for guidance.

These organizations include Consumer Counseling Centre of America (CCCA) which are non-profit organizations and have their presence all over the country. These centers assist consumers in getting out of debts which are unsecured in nature like credit card debt, personal and medical loans. You should not confuse CCCA with a consolidation loan agency. The major difference between the two is that while a consolidation loan agency gives you a loan CCCA does debt consolidation and negotiation of interest rates for you with your credit card company. CCCA works for you by receiving a consolidated monthly payment from you. Then, it uses that amount to pay off the creditors to whom you owe the money. You will find that availing the services of counseling centers like CCCA helps you gain your peace of mind. This is because of three main reasons, firstly, the creditors are no longer harassing you, secondly, your accounts are being updated regularly and thirdly your payment is current.

On top of this, since someone else is managing your payment schedules and logistics, no payment is missed and no late fees or delinquency charges are imposed on you. It is natural for people to feel disappointed when their application for a debt consolidation loan is not approved by banks. At the same time it is important that they accept the fact that a credit card debt is a loan which is unsecured in nature. Since an unsecured loan like credit card debt is not attached to any collateral, most of these banks will ask you for a mortgage. For example they may ask for your house to be mortgaged. We do not advise this as in case of a default on payment, the bank has the right to auction that asset. So, the best way to get out of a financial crisis like credit card debt, you will require a lot of self discipline and a little assistance from a counseling service.

What Service-specific Quality Standards Should Debt Consolidation Credit Counseling Agency Adhere To?

Financial well-being is very important for all of us. Therefore, if you are facing a financial crisis and need to go to debt consolidation credit counseling agency to get yourself back on track then you must ensure that you opt for a professional and accredited agency. What does a debt consolidation credit counseling agency do for you? These agencies first analyze your financial situation. Then they work along with you and your creditors to develop a debt repayment plan that you will be required to follow in order to pay off your debts.

How to choose a debt consolidation credit counseling agency?
There are numerous debt consolidation credit counseling agencies that have mushroomed all over. Therefore, you must be vigilant in selecting an agency to turn to. One of the main aspects that you must check is if the specific debt consolidation credit counseling agency is accredited to any third party organization. This means that another organization confirms that the specific debt consolidation credit counseling agency follows high standards to provide high quality service to consumers. Which organizations provide accreditation to debt consolidation credit counseling agency? One of the most well known organizations that accredit a debt consolidation credit counseling agency is the Council on Accreditation of Services for Families and Children, Inc. (COA). This organization provides a guarantee that the specific debt consolidation credit counseling agency will adhere to set high standards to provide service delivery, counselor certification, fiscal integrity, and volunteer Board governance.

Accreditation by the COA can be a sure shot method to select your debt consolidation credit counseling agency because COA does not accredits any agency. They accredit only those agencies that meet their exacting standards. National Foundation for Credit Counseling (NFCC) is another organization that can provide accreditation to a debt consolidation credit counseling agency. NFCC-certified debt consolidation credit counseling agents are required to take a rigorous training and testing program. The debt consolidation credit counseling agencies must adhere to several service-specific quality standards to obtain accreditation. For example, they must annually audit their operating and trust accounts and adhere to all consumer disclosure requirements set by the Federal Trade Commission. The agencies must disburse funds daily and immediately in case of emergencies.

They must provide an assessment of reasons for financial problems, a comprehensive financial plan, and a written plan of action to each consumer. Finally, the debt consolidation credit counseling agencies must ensure that their clients receive at least a quarterly statement. Additionally, to get accredited to the COA, the debt consolidation credit counseling agencies must adhere to COA standards for service delivery and quality. They must cater to the requirements of cultural or ethnic population groups in the communities they serve. They must provide indiscriminate and equitable treatment and charge only a minimal fee from all consumers. They must start educational programs and employ NFCC-certified counselors. Finally, they must have a branch counseling network to provide client support.

Credit And Debt Counselling In The UK

Consumer debt in the UK is a major problem, both at a social and individual level. There is not that we can do about the social problem, but individuals can take action to prevent and overcome their own debt problems. While UK citizens may be unfortunate to live in a society where debt is commonplace, they are also fortunate in the way consumer credit and debt counselling services have evolved to meet the problem head on.

Those individuals who start to find their personal debts overwhelming and causing great worry may decide they should seek help through credit counselling. Often, though, they would have benefited from the advice of a counsellor much early. There is still a stigma attached to debt, insolvency and bankruptcy in the UK, and bankruptcy laws are very harsh compared to some states in the US. This may be a contributory factor in discouraging people from taking action and sharing their plight with others.

Such reluctance is a shame, but even so, thousands of people seek debt or credit counselling in one form or another every month in the UK. Fortunately, once they have made the decision to seek advice, they have a good choice of advice sources. Importantly, there are several free debt advisory services, so there really is no need to be tempted by any solicitation from debt advisors who are going to charge.

Here are four free debt counselling services in the UK you can consider:

1. Citizen's Advice Bureau

The Citizen's Advice Bureau (CAB) deals with many types of consumer advice, but debt counselling has become a prominent area for them over the last two decades, as the British have slipped into habitual debt problems.

The CAB provides a thorough and free service through its specially trained consumer debt counsellors, who will deal with your creditors on your behalf once you provide all the necessary details of your debts. I have known three people who have used CAB's debt counselling and were very happy with it.

2. National Debtline

The National Debtline is a telephone based service which has existed, as a charity, since 1991. This is another free service that has evolved to meet the strong demand for debt advice. Some people may prefer the telephone and post to face to face meetings with the consumer credit counsellor, and this service is very popular.

3. Consumer Credit Counselling Service

The Consumer Credit Counselling Service (CCCS) is also a registered charity. Their purpose is to assist people who are in financial difficulty by providing free, independent, impartial and realistic advice; exactly what somebody with debt problems needs. The umbrella charity is called the Foundation for Credit Counselling.

4. Insolvency Helpline

A different type of organisation is the Insolvency Helpline, which offers debt advice to both consumers and companies. It is the largest professional network of lawyers and accountants, specialising in money advice, in the UK. The Insolvency Helpline promotes the provision of independent money advice from the UK's regulated professional bodies, which means the debt or insolvency counselors are not only well qualified, but have to follow their professional body's guidelines.

From the above four bodies, you are sure to find one that will provide valued assistance with coming to terms with and dealing with your debt problems. There is absolutely no need to succumb to the advertising of those who may try to prey on your hardship, and seek upfront payments for their advice.

Is Debt Counseling The Solution?

Can debt counseling services offer a solution to your debt problems? To be able to answer this, we need to understand the debt counseling services and how they function. Well, debt counseling services are firms that are mostly sponsored by your creditors. Almost all of these service providers are non-profit organizations, though you may come across a few which function on their own. Having a source of income is an important condition for contacting a Debt counselor. The debt counselor will probably get in touch with the company you owe money and inform them that you are making an attempt to repay your loans. This counselor, after contacting the creditor, will try to achieve an agreement between you and the creditor. At the same time this counselor will ensure that the agreement is within your budget, keeping in mind your current source of income.

When the creditor receives their payment, this debt counselor will request your creditor to pay for their counseling by deducting small amount of money from the payment. There may be some counselors who will help you by waiving interest on the outstanding payment but this is mostly an exception than the rule. Inability to make your monthly payments may lead to imposition of late charges. Therefore, in order to repair your credit, you need to take charge yourself rather than letting someone else be in control.

By taking back the control that has been given to someone else, you have a chance of solving your debt problem without making your situation more complicated. Spending money only on minimum grocery and necessary items will help us in making more funds available for repayment. There are various ways in which you can cut back on your spending. For example for house cleaning you can use soap and water simply. You can use same cleaning item for windows, clothes as well as carpets.

Therefore, instead of wasting money for multiple products, we must find single product that may accomplish tasks. Let us not fall for the marketing gimmicks of companies that position one product as more efficient than other, thereby compounding your debt problems. Similarly reducing the number of trips you take assists you in reducing on many things like gas, food, hotels etc. Any solution that helps you in reducing your spending will repair your credit, as long as use the savings to pay your bills. So it may be a good idea to put off your plans for taking a trip or buying items for your house till you have paid all your bills. Paying your bills first will ensure more freedom for you to go for fulfilling your other desires. In case you find that you are facing problems in paying your monthly bills, we suggest that you get in touch with your creditors and apprise them of the ground situation.

It is likely that many of these creditors will like to work with you to achieve a workable solution instead of accepting the total loss. On the other hand, you should be ware of some greedy creditors who will demand their money immediately. To deal with such creditors you will need to pay the most critical bill and then work through the rest of them. Bills that classify under non-necessary bills must be terminated for a short while till you are able to repair your credit. These bills may include bills for cable TV, internet fees and other entertainment bill can be stopped for some time. We must understand that bills have become an integral part of our life and we can not solve our credit problems by delaying these bills. In conclusion, self-discipline and taking control of our credit problem and not the debt counseling is the solution for credit repair.

Credit Counseling: Help For The Weary Debtor

Many people across America have dug a deep hole with debt and find it hard to escape this burden. With so many people having problems with debt, new credit counseling agencies spring up to help people get out of the debt they owe. Although there are many great credit counseling companies, there are also those that are fraudulent that can cause even more damage to your credit. It is important that you know what to look for in a great counseling company so you can avoid fraud.

Look for NonProfit Companies
If you need credit counseling, consider looking for companies who run as a nonprofit. You should only use these companies as a last resort and not as a way to escape your commitments to your creditors. However, if you feel you cannot manage your debt load, you should seek help to find a solution to your financial problem.

On the other hand, if you can take small steps to pay off your debt without outside help, you will build good money management skills. You can, for example, call your creditors and explain your situation. This means you have a chance to hear what the other party thinks about your delinquent account. Most times it is not what you are thinking. Most creditors prefer to work with you to help you repay as much money as possible. They don't want you to declare bankruptcy because they stand to lose all their money.

You can also decide to make a larger payment on your credit cards. This may mean taking another job or selling some of your valuables, but it is a step in the right direction. However, if you decide to work with a credit counseling firm, you should do careful research about the company. Check with the Better Business Bureau in your local area to see if there are any complaints on file. You could even have a friend visit the company and pretend she is looking to work with the company.

Avoid Fees
A warning sign that a credit counseling company may be fraudulent is if they require that you pay any fees before they begin working with you. While a small fee may be all right, a company charging excessive fees may cost you more money in the long run and offset any savings you might get from consolidating your debts. Remember that you want to lower your debt, not add any extra costs to your existing debt. If the fees seem unreasonable, you may want to ask your friends about them.

False Advertising
If you are looking for a credit counseling company, you should avoid those companies that offer a quick fix for your credit. It likely took you a long time to amass your debt, and there is no program that can help you get out of debt overnight. If the company promises to wave a magic wand and wipe out your debt, or fix your credit history without any effort on your part, there is a good chance that they are a fraud. Often, any steps they might take to try to fix your credit may be illegal and cause you more harm than good.

Unsolicited Emails
If you are in need of a credit counseling company, it is important that you go and look for a company yourself. Many people receive unsolicited emails offering credit counseling and, many times, these are scams. If you contact a company and then they contact you, this is acceptable. But those who come looking for you are usually companies to stay away from.

Credit counseling can be an important way to help you get control of your debt, especially if you are close to bankruptcy. If there are ways that you can help yourself work to get out of debt, this may be a better answer than turning to a counseling company. If you do find yourself in need of a credit counseling company, be sure to check out the company to be sure that they are legitimate. Remember that choosing the wrong company can get you into even greater debt.

Credit Counseling And Debt Management Programs

Not all credit counseling services require that consumers participate in a debt management program, and not all consumers who need credit counseling also require a debt management program.

A debt management program is a program that helps consumers with their existing debt. Qualified credit counselors will take a look at your debt and income levels, discuss options for getting out of debt, and discuss the advantages and disadvantages of a debt management program with you.

If it is determined that a debt management program is the appropriate plan of action for your situation, the credit counselor will develop a payment schedule with each of your unsecured creditors, in an attempt to lower the total amount of money owed, decrease your interest rates, and have over the limit and late fees removed from accounts while you are participating in the credit counseling debt management program.

How Debt Management Programs Work

When you join a debt management program, you will begin making a monthly payment to the credit counseling agency. The agency then takes those deposits and uses them to make payments on your behalf to your student loans, credit cards, medical bills and other unsecured debts- using the payment schedule that the credit counselor has worked out with your creditors.

It’s always a good idea to get the debt management program terms in writing- and then ask each creditor if they actually do offer the concessions that the credit counselor has indicated.

Successful debt management programs may take 2 years or more to pay off your debt. Your credit counselor should be able to estimate how long it will take you to completely pay off each of your existing debt, and chances are you will be required not to apply for or use any other credit while you are part of the program.

Questions to Ask before Enrolling in a Debt Management Program

Before signing a contract or making a commitment to use a debt management program, there are more questions you should ask in order to determine if the debt management program is the best option for your situation.

If a credit counseling agency only offers debt management programs as their service, you should probably consider using a different credit counseling program that can also provide assistance with budgeting and money management.

Ask how the monthly payment is determined. If the debt management payment is higher than what you can afford each month- you’re not going to make any progress by using the program. Make sure the monthly payment is reasonable enough that you can make the payment as required each month before the due date.

Find out how the debt management program makes payments to creditors. Will it be within the billing cycle and before the due date? Do they make monthly payments to creditors or are they on some other schedule? How does their payment schedule affect your debt?

Are there any debts that you currently have that cannot be included in the debt management program? Find out why, and make sure that you can afford to pay that bill on your own while still paying the proposed debt management monthly payment.

Ask the credit counselor how the debt management program will affect your credit. If they tell you they can remove negative marks on your credit report, they’re wrong. Legally, only incorrect negative marks on your credit history can be removed before the seven year period is over.

Make sure the program you are considering is a debt management program and not a debt negotiation plan as they are two very different methods, and a debt negotiation plan can have long lasting negative results for your credit report.

What are the Differences Between Debt Reduction and Credit Counseling?

In today's world, it is often easy to get in over your head and find yourself spending more than you make. It seems that everything is going up but wages, and it is all too easy to fall behind. As the result, debt incurred and accumulated over the time; initially, you are able to pay your credit card balances in full on each month and when more and more accumulated, you may go for minimum payment, then when come to the, your income may not afford to even support the minimum payments.

Like many who trap into unbearable debts, you may want to get rid of your debts by filling a bankruptcy. But bankruptcy can carry a legacy you will have to live with for years. A bankruptcy filing will stay on your record for a minimum of seven years, and you may find it difficult or impossible to obtain necessary credit in the interim.

Luckily, there are still others possible alternatives before you make up your ultimate decision on bankruptcy. You can enroll into a debt reduction program or enroll in a credit counseling program. These are the most popular debt solutions for many debtors, but you may confuse what are the differences between these two popular debt solutions, making you hard to decide your choice to enroll to credit counseling program or debt reduction program.

While there are some similarities between these two types of programs, there are some important differences to consider as well. Let us consider a few of the most important differences between debt reduction and credit counseling.

1. Close Your Credit Accounts

In credit counseling program, you will require to close all your credit accounts, exception for some exceptions like accounts for business needs, accounts with zero or very small balances. Whereas, debt reduction programs do not require all credit accounts to be closed. Sometimes, it's good to keep a few of credit cards for emergency purposes.

2. Completion Period

Credit counseling services typically take longer to complete than debt reduction services. The average length of time to liquidate debt through a credit counseling service is 5 years whereas in debt reduction programs can be completed in less than a year.

3. Cost Saving

One of the advantages of debt reduction program over credit counseling program is in term of cost saving. In debt reduction program, you may only need to pay a settlement amount of 20% - 60% of amount owned. Whereas, in credit counseling program you normally need to repay a full amount owned with some discount and interest waived.

4. Credit Score

Your credit score is more affected in debt reduction program as compare to credit counseling program. In debt reduction program, the creditors may report the remaining amount between the amount you owned with the settlement amount as the "deficiency balance" to the credit bureaus as a negative item and it will be noted at your credit report and impact your credit scores. Generally, credit-reporting agencies will re-age the accounts of consumers enrolled in credit counseling services after three payments have been made.

5. Bargaining Power

In credit counseling program, your credit counselor will come out a debt repayment proposal to your creditors and it relies on your creditors to accept or reject the proposal. Whereas, with a debt reduction program, all creditors are will be notified about your hardship situation to repay your debt and you are desired to resolve it through a negotiated debt reduction agreement. Hence, creditors have no much choice in debt reduction program except try to negotiate to get back as much payment as possible from their debtors.

In Summary

Both credit counseling program and debt reduction program are a better debt solution option than bankruptcy. The two programs serve the same purpose to help you to get out from debts, but there are some differences between these two debt solutions and each program has its own pros and cons.

Looking In To Consumer Debt Counseling

A lot of different debt consolidation agencies who purport to be non-profit agencies really do stand to make a profit at the expense of people in need of debt counselling, according to a recent report. Although these companies claim to bne non-profit, thus benefitting the people in need of their service over the business as a whole, many have been found to charge high fess to most of their customers. In addition, the consumer debt sounceling that some offer have been found lacking insofar as legitimate advice. Some of these companies have been caught redhanded giving advice that is not correct or a downright lie as well as charging high fees. What this amounts to is the abuse of their non-profit status in order to lure desperately hopeful people in. There are estimates that suggest that American debt is grwoing, and that with over nine million people contacting a debt counselling service each year the industry is becoming a big business.

Many companies have an agressive attitude towrds reeling in clients and maximizing on their business despite the fact that they are supposed to be non-profit. These businesses are really only using the non-profit status as a pretense, and are in fact offering their clients less access to real help when it comes to debt relief options. INstead of laying out all the alternatives to their clients, these companies tend to push the idea of a consolidation loan to individuals. This, of course, means that debtors will end up owing the company money as opposed to their former creditors. Although there are consumer watchdogs put in place at both the state and federal levels of government to regulate these practices, many of the companies are simply good at hiding the fact that they are indulging in questionable practices.

ALthough there are a high number of shady businesses out there, it is important to remember that not all non profit debt consolidation agencies are detrimental options for their clients. Many of the legitimate companies have paved new roads as far as meeting the needs of their clients by introducing new measures of debt reduction and making the process more convenient, such as extended hours, easy access via the Internet or by phone, and electronic bill payment options.

Despite the number of legitimately practicing companies out there, the number of complaints by consumers against non profit debt agencies continues a sharp climb. The main issue among complainants seems to be that the bad companies frequentlyindulge in practices that are misleading and deceptive. One major deception is companies who claim that fees are voluntary, or purposefully neglecting to mention the fees to potential clients. ANother practice is to forget to make the payments to the debtor's creditors.

ANother major thing to watch out for from less than reputable non-profit debt consolidation businesses is excessive costs. The original idea behind debt consolidation companies was to make the payments lower and thus more affordable for the consumer. However, some companies today are charging fees that may be as much as one full month's payments for their services in beginning an account.

One of the reasons that non-profit status is so desirable is that agencies operating under this label have tax exemption status on many levels. This means that there is even more potential to havea windfll of profits, as the companies indulge in telltale signs of profit making such as expensive advertisement campaigns, selling debt management programs, and salaries for exectuvies which far exceed the average salaries of most non-profits.

If you are thinking about using the services a non-profit debt consolidation company offers, make sure to check and see if there are any signs that the company you are researching is in fact interested in making profit after all. If you are not careful, you could end up in a tighter bind than when you first walked in their door. Look for references and wathc out for simple solutions!

Debt Relief Consolidation Through A Counseling Agency

Credit counseling is one of the best options available for people who find that their monthly spending as far as bills exceeds their generated monthly income. Companies set up to help consumers through credit counseling will offer clients advice on how to go about debt relief consolidation, including introducing measures such as helping clients to create a budget which works according to their needs, offering advice on how to use credit extensions wisely, giving clients tips on keeping track of their bills and ideas for better money management. The people employed by these agencies are well qualified through training and certification to help individuals gain debt relief, and can often act as mediators between individuals and their creditors in order to arrange a better repayment plan with creditors and help a client gain back some hope for the future as far as finances are concerned.

The first step in finding the right advice is to make sure that the individual selects a company with a reputable service. Not all companies in this field are legitimate, and if you choose poorly then the situation could become much worse instead of better. Once you have selected the appropriate company, you will be asked to provide a lot of financial information about yourself. This information will include figures regarding your income, the expenses you accrue each month, and the areas where you owe money. After the information is provided, the counselor will assess the numbers and begin putting an action plan in place which is designed to suit the specific needs of your problem. One option that many counselors suggest is that the client enroll in classes that are taught on how to properly mange your debts or how to go about making payments. Sometimes the service may go even further and refer clients to other services which can help with some of the other problems that come out of being in debt such as relationship counseling and employment agencies.

Remember that choosing a credit consolidation company is not a task to be taken lightly. Don't be awed by the company whose advertisements you see constantly on billboards or on the television. Also avoid companies who phone you or email you all of a sudden suggesting that they can solve your financial woes. These companies are most likely out to make a dollar at your expense, taking advantage of a desperate situation for their own gain. The way to go when it comes to debt relief consolidation is to look for a counseling company with a solid background with established organizations and previous clients. Many of these companies are actually non-profit, so they do not stand to make money off of your emergency. Again, if you come across a company that charges high fees up front or offers worse rates than you are already getting, it is probably best to pass them by. Look instead for a non-profit organization.

It is much better to arrange to meet a debt counselor in person rather than rely on advice that is given over the phone or across the Internet. It may be inconvenient in the short term, but taking a little bit of extra time here may save a lot of money in the long run. If you are unsure of where to start looking for a reputable company, begin by asking family and friends if they know of anyone who offers these services. If not, you can turn to a local bank or financial institution. It is very likely that these companies will know a few organizations that specialize in credit counseling. In many cases, these will be top notch companies that will offer free educational programs for individual debtors, including classes and workshops and solid advice on debt management and budgeting. Do not accept the help of a company if their counselors are not certified in all the areas that concern debt consolidation, including management, budgeting, and consumer credit. Most of all, avoid any organizations that seem reluctant to provide information on their company to you; it is most likely that if they are trying to hide something, they are best left alone.

Can Credit Counseling Help You Get Out Of Debt ?

Credit counseling may be able to give you the information you need to get out of debt. Credit Counselors may be able to help if you are faced with serious consequences as a result of debt problems. Consumer debt or what financial companies call bad debt is on the rise. People are finding more than ever that they are faced with serious consequences as a result of their debt problems.

There are many reasons why many people may find themselves in this type of situation, including not knowing how to properly budget and keep track of their finances and being lured into signing up for easy credit from companies that offer high interest buy now, pay later types of credit.

For those who are faced with growing debt concerns, it can be a scary situation and many people simply don’t know where to turn or how to obtain the help that they need from a reliable source. Credit counseling companies specialize in helping people with serious debt issues to overcome their problems and get their bills repaid on fair terms. As well as help you get out of financial distress, they also teach their clients how to avoid putting themselves in trouble again.

Lets explore the signs of being in serious debt, what credit counseling companies offer their clients and how they can help you with your money problems.

Telltale Signs Of Debt Problems:

For those who are concerned about whether they are headed for severe financial problems or those wanting to confirm their sticky financial situation is indeed serious, here are a few of the telltale signs that you are in serious consumer debt and may need help:

If you are only able to afford the minimum payments due on your credit cards and often let your every day utility bills slide past the overdue date or if you have no savings and contingency funds available to back you up in an emergency, you are likely to be having debt problems.

Additionally, you may be buying things such as food or paying your regular bills with your credit cards rather than using cash, your money is gone before the end of the week or well before payday and your credit cards are very high or even maxed out. If you are noticing that these things have become common in your everyday life, it is very likely that you are in serious distress.

As well as the above mentioned problems, you may also notice other things, such as being declined for credit or your checks will often bounce on you and you have creditors calling you for payments that are past due.

Often, when this type of thing happens, we feel a little ashamed of ourselves for getting in such a bad situation. Instead of asking someone for help or seeking advice, we are more likely to hide the situation, especially from people we are close to, such as a spouse or family members. By hiding your debt problems, you are only delaying the inevitable. You need to face these issues head on.

Who To Turn To When Debt Gets Too Much?

Often, people are confused and frustrated when faced with serious bill problems. They don’t know what to do, or worse still, they even may consider bankruptcy as an escape from the dire situation they are faced with. What many people don’t realize about bankruptcy is that they are often still left with debts even after they have gone bankrupt.

Bankruptcy will also leave a black mark on your credit report for as long as seven years. This means that you are unlikely to be able to get credit for quite a long time or if you do get a creditor to lend you money, it is likely that you will have to pay the highest possible interest rates allowable. All of this can be avoided by getting some helpful advice from a reliable source.

Credit counseling companies are qualified financial professionals that work with people who are in debt to help them work out their outstanding debts. This is done by the credit counseling company speaking with the creditors and with you to come to a fair agreement that will allow you, the person who is in debt to pay back what you owe in a way that is more affordable. Many creditors prefer this method, as they are more likely to receive their money, even if it is less money than they are owed.

Credit Counselors are also better equipped to work with credit companies, making it easier to get a better deal on interest rates and negotiate fair terms or discounts. This is because they have dealt with these types of credit companies before and know how to make the creditor feel assured that they will receive their money, as well as assist the person in debt to make payments on time and to a prepared schedule.

Debt Counseling - Presents A Systematic Method Of Clearing Debt Load

It was my wife who first introduced me to debt counseling and I thought it would be just another agony uncle whom I would have to deal with. However, it was not late that I was proved wrong. It was through debt counseling that I survived the deadly debts to recount its benefits.

Debt counseling is the advice offered through experts on several debt related issues. Debt counseling has a two-pronged strategy. While the advice focuses on ways to counter the current debt load, the borrower will also be informed of methods to prevent debts from originating. Thus, debt counseling plays defensive as well as a preventive role.

The defensive strategy will be employed for situations where the debt load is sufficiently large. In my case, the debt load was substantially large. My personal savings and monthly income would have lessened the burden a little. But, there were other expenses too that needed to be paid through the same limited income. By channeling my income towards debt settlement, I would only have paved way for newer debts.

Debt counseling showed the way out. Large number of people in the UK owe their freedom from debts to debt counseling. In fact, the very first lesson that I learnt from debt counseling is that I was not the only person who had debts. There were many others who have even messier finances. The statistics are really appalling. How come so many people, belonging to so rich a country as the UK, be so vulnerable to debts? However, people do incur debts. A desire to have almost every material comforts, often pushes people to spend rashly. On most occasions, the expenditure is without any consideration for the sources of payment.

However, as the pressure of the creditors mounts, the very first priority of debt counseling will be to design a way out for the debtors. Presently, there are a number of debt elimination options available in the UK, namely debt consolidation loans, debt consolidation mortgages, debt consolidation through remortgage, home equity loans and credit cards. Each option has its own set of advantages and disadvantages, and it will be really difficult to make a choice for one of these. Through debt counseling, borrowers can also get help during the product selection process.

Since I had a large debt load, the debt counselors suggested that I take up a debt consolidation loan. They did not force the product on me. This is one of the peculiarities of debt counseling. The debt counselor presents an impartial view of the various products. However, not all debt counselors adopt a similar view. Most of them will sell their products in the guise of debt advice. Borrowers need to stay clear of such advisors. As in medical sciences, second opinion is always beneficial during selection of debt settlement products. There are a large number of profit and non-profit agencies and individuals who provide genuine and professional advice. Some of these, like Independent Financial Advisors are bound by the rules laid down by the Financial Services Authority to offer genuine advice.

The preventive role of debt counseling is more of an advisory nature. The aim of this exercise will be to instill debt sense in the people; though this will prove a Herculean task, given the strange relationship of people with debts. The role may take the form of a face-to-face meeting with an individual, or a conference wherein a number of people are addressed at one time.

During these sessions, the debt counselor advises borrowers of ways to deal with debts. Debt consolidation loans and debt consolidation mortgages can at the best relieve individuals of debts for sometime. However, if the individual does not improve his spending habits, he will again have a large debt load. Through preventive debt counseling, the debt counselor aims to strike at the roots of the debt.

Some of the principal debt counseling tips include:
*Do not spend more than what you earn.
*If the expenditure is necessary, then a provision needs to be made for its payment.
*Every individual must prepare a priority list showing the importance of each expenditure.
*Try to generate newer sources of income.
*If a debt has been incurred, then it must be repaid with priority.

Preventive debt counseling tips are not new to people. They may have heard of them from their parents or recited them in moral science classes, but all these lessons vanish while spending. A workable debt counseling method must be practical enough to be implemented. The borrower’s finance needs to be studied exhaustively for finding an effective solution. No debt counseling is complete without the borrower’s participation. Consequently, borrowers need to tread safely on any debt decision that they make.

Credit Counseling Vs. Debt Settlement

Credit counseling or debt settlement? While naturally Franklin Debt Relief is inclined to argue on behalf of debt settlement over credit counseling, we also recognize that it’s impossible to declare which program is better because it depends on a number of variables that differ from individual to individual. The purpose of this article is break down which factors you should consider before choosing the appropriate option.

1. What can you afford? Credit counseling programs tend to be a lot more expensive than debt settlement programs. The reason is simple: credit counseling only produces results on the interest rates, whereas debt settlement is able to actually negotiate the amount you owe. Simply put, if you are in a true financial bind, then the clear choice for you should be debt settlement, and on a pure “money saved” basis, debt settlement will almost always be the answer. Although this is undoubtedly an important factor, it is not the only variable to consider before making a decision on which program is best for you.

2. What sort of credit impact can you tolerate? Some credit counselors out there will undoubtedly tout that their program doesn’t affect your credit score negatively. This is a play on words. Sure, your score won’t drop, but ask any lender what the impact is to your loan application. Let me save you some time---it’s devastating. That being said, debt settlement is no better for your credit, and lenders in general definitely do not like seeing debtors seeking outside help for their financial situation. On the flip side, they definitely do not like seeing the past due marks from enrolling in a settlement program. So let’s consider this example: Four years ago, John decided to use credit counseling, and Mary decided to follow the debt settlement path. They both have the same income and expenses, and they both apply for a $200,000 mortgage. Who is more likely to get it---John, who is 1 year away from completing his credit counseling program, or Mary, who finished her debt settlement program 1 year and half ago and has since been rebuilding her credit? While this may vary from lender to lender, in general Mary would be considered the better loan applicant. What if John paid a lot per month and they both finished their respective programs in the same amount of time? By itself, the credit counseling program would be better for your credit, but when you factor in the fact that Mary would probably have more savings to contribute to a down payment, she’d still probably be considered the better loan applicant. Do I think this is fair? Not at all. It’s ridiculous that lenders are so harsh on clients of credit counseling programs. Unfortunately, the system is flawed, but until there are adjustments made to correct it, debt settlement clients will be in a more favorable position to obtain new credit upon completion of their program.

3. Who do you owe? So you can save more money in debt settlement, but not always. If you owe a more aggressive creditor like Citibank, then it’s possible that credit counseling or bankruptcy may be a better option for you. The reason: Citibank not only tends to settle for more on average, but they are also more likely to pursue legal action to collect a debt. Although under most circumstances debt settlement is still successful with these creditors, it is a much riskier undertaking when you’re dealing with Citibank. If you cannot afford credit counseling and your debt is exclusively with Citibank, then unfortunately you’re probably better off filing bankruptcy.

4. What is your personality type? I’ve read just about every article online regarding credit counseling versus debt settlement, and I’m amazed by how most finance authors eliminate the human element from this discussion. The bottom line: debt settlement is not for the faint-hearted. There is no guarantee that everything will work out completely as planned. Some settlements may be higher than estimated. Some settlements may be lower than estimated. You will inevitably get some creditor calls. This is the nature of the program, and you must be willing to accept some level of uncertainty before enrolling.

I organized the following 4 questions in this order on purpose. After all, if you can’t afford credit counseling, then it’s pretty much out of the picture as an option for you anyway. I don’t mean to sound overly cynical, but we live in a material world and issues like having an anxious personality must be sacrificed when you don’t have the money necessary to freely exercise this aspect of your character. On the flip side, if you have 100% Citibank debt, it would be foolish for you to choose debt settlement over credit counseling or bankruptcy just because you fancy yourself a risk-taker.

There are countless other variables that influence whether debt settlement or credit counseling is appropriate for you (i.e. what state you live in, your income source, etc.). Your best bet is to discuss your individual situation with someone knowledgeable in these arenas.

Debt Secrets Credit Counseling Companies Don't Want You To Know

Most people don't know it, but a bad or shady debt reduction company can actually land you in a worse spot financially than you were in the beginning. In fact, in many cases filing bankruptcy is preferable to working with a credit counseling company. Given the amount of confusing information out there, it is critical that you arm yourself with the truth about these businesses.

WARNING: Credit Counseling Isn't Always What It Appears

When you first start out, you go over all your debts with a counselor. They contact each of your creditors to lower your interest rates, which lower your payments. Together, you develop a strict budget. They hold you to this budget by asking for one lump payment from you each month, which they then use to pay your bills on your behalf.

Unfortunately, this sunny scenario hides the real truth. Yes, for a fee, credit counselors will ask your credit card companies to lower your interest rates-but you can do that yourself. Yes, for a fee, they will help you develop a budget-but you can do that yourself. Yes, for a fee, they will take one large payment from you each month and use it to pay some of your bills-but you can do that yourself, too. In fact, you can do it better.

When you're in debt, the last thing you need is a credit counseling agency charging you high monthly fees for performing tasks that you can do yourself for free. Otherwise, any savings from lower interest rates is quickly lost in new fees for your credit counselor. Does that sound like good financial advice?

Driven By Client Successes, Or By Personal Profits?

Years ago, a small number of newly created credit counselors actually made a positive difference in the lives of their clients. Before the industry exploded, many credit card companies considered professional credit counselor to be a step in the right direction. Creditors were willing to lower interest rates and make other compromises to help customers in counseling to get back on track.

No longer. Sadly, today's credit counseling companies exist to create profits for their owners-not to help customers get out of debt. In fact, some debt reduction companies are not actually dedicated to helping consumers with debt management plans at all; rather, they serve as fronts for bankruptcy attorneys or home equity mortgage brokers.

Don't be misled into believing that a non-profit credit counselor is better than a for-profit one. In fact, recent federal investigations have revealed that many of these non-profit companies are actually owned by the same people who own their for-profit "competitors."

The credit counseling industry is unregulated, meaning there is no set of central standards that companies must follow. Once the shady credit services opened their doors, the credit card companies closed theirs. In fact, it is now harder than ever to get credit card interest rates lowered. Credit counselors, not credit card users, are to blame for this situation.

It All Adds Up... To Even Higher Bills

Specific debt consolidation companies have specific guidelines as to what their clients are and are not allowed to do. For example, some companies do not allow you to open any new credit accounts under any circumstances. If the family car finally breaks down, you may not be allowed to get a new vehicle. The average debt reduction plan lasts at least three years - that equals at least three years of your life, where total strangers restrict your every expense.

Whether or not you can take out a new car loan may be the least of your concerns after hiring a credit-counseling agency. Consider how important it is to pay your credit card bills on time. Multiple late payments hurt your credit score, which means even higher interest rates on a future mortgage or student loan. What guarantee do you have that your counselor is paying attention to your due dates? Many of these businesses have been exposed for repeatedly paying bills months late. Their innocent clients never knew until it was too late.

Then there is the matter of simple math. Shockingly, the monthly payment you make to your credit counseling company may not even be covering your total minimum payments. After the counselors subtract their own hefty fees, they then pay your bills at their discretion. Some cards could remain unpaid for months as most of your money is put on another card.

At best, this means a lower credit rating and multiple late fees; at worst, it means legal action against you and worse credit than you had originally. It would have been faster, easier, and much cheaper to file bankruptcy instead.

Dealing with debt can be stressful, but turning such an important aspect of our lives over to people we do not know is a big risk. It's great to get outside help, but not if it costs you hundreds or even thousands of dollars that would be better spent on paying off your current balances.

Credit Counseling -- Why It Doesn't Work For Most Debtors

"Cut Your Payments in Half!" the headline screams. "Consolidate Your Bills into One Low Monthly Payment!"

When you see ads like this, they are often from Credit Counseling firms. In this article, I'll explain the principles behind the Credit Counseling approach and discuss the main problem consumers face when they join one of these programs.

First, let's get our definitions straight. The term "Credit Counseling" is actually quite misleading, since it has nothing to do with preserving or improving your credit score. In fact, Credit Counseling will often damage your credit, an unpleasant reality that is sometimes downplayed by industry representatives.

Credit Counseling is a debt management program where you make a single monthly payment to an agency. In turn, that agency distributes the money to your creditors on your behalf, ideally at lower interest rates so you can pay off the debt faster. Credit Counseling should not be confused with Debt Consolidation, Debt Settlement, or Debt Termination. Each of these debt programs takes a very different approach from Credit Counseling.

Of all the available debt options, Credit Counseling is by far the most popular, with millions of Americans participating. Does this mean it's the best choice for most people struggling with debt? No! There are numerous problems with this approach.

In recent years, the Credit Counseling industry has been heavily criticized by impartial consumer groups like the Consumer Federation of America. But these criticisms often miss the mark entirely. They usually focus on the aggressive companies that use their non-profit status to trick consumers into thinking they are charitable organizations, or even that their services are free of charge. In reality, these outfits charge hefty "voluntary" contributions, often adding up to hundreds of dollars, plus steep monthly fees as well.

However, I'm not talking here about the bad companies who provide little or no actual "counseling," or the ones that are only in business to make their owners rich. No, I'm talking about serious problems with the actual business model itself. So let's take a closer look at how Credit Counseling works.

Let's say you owe $25,000 on several different credit cards. Let's also assume your average interest rate before you enrolled was 20% (which is actually low these days, especially if you've missed any payments). Your minimum monthly payments are $500, which you've been struggling to keep up with. At this rate, it will take a whopping 109 months (more than 9 years) to pay off your debts, assuming you don't miss a single payment along the way.

You enroll in a Credit Counseling program that promises to get you out of debt faster. But does it? Assuming your creditors agree to participate in the program (not always the case), the real key is the concession they will grant on your interest rates. In prior years, creditors looked more favorably on Credit Counseling and they offered steep discounts off the normal interest rates. But lately they have squeezed the industry, and the concessions are not so good any more. Currently, most of the major players will reduce interest rates down to a range of 7% on the low side to 18% on the high side. We'll use 12% as the average.

So if you keep your payments at $500 per month at the new 12% rate, how long will it take? First, we need to deduct the monthly fee charged by the agency. In this example, we'll use a fee of $25 per month, so $475 of your $500 will go toward debt reduction. The good news is you'll be out of debt faster. The bad news is that it will still take 75 months (more than 6 years) to become debt-free.

But what happens if you can't keep up with that $500 per month? After all, you sought help from a credit counselor because you were struggling financially, right? Let's say you drop down to $450 per month. After deducting the $25 monthly fee, that leaves $425 toward your debt plan. Now you're looking at 90 months (7 years & 6 months), which is not much better than the 109 months you started out with.

So how can credit counselors claim to cut your payments in half? Good question. If you dropped down to $250 per month, you'll never pay off your debt! At 12% interest, the debt will climb faster than your $250 per month can reduce it. The lowest you could go would be $300 per month. However, it would now take 20 years to pay off the debt, hardly an improvement!

In order to truly cut your payments in half, down to $250 in this example, the agency would need to completely eliminate all interest! And even then, it would still take more than 9 years to pay off the balance! So the ads claiming you can cut your payments in half are simply false.

Bear in mind here that in our example, we're assuming you're working with a good company that charges low fees and actually obtains good interest rate concessions from all of your creditors. Even with the best of credit counselors, you're still looking at a 5-9 year program to pay off your debts.

That's why Credit Counseling is usually only effective for people with short-term financial problems. Consumers with long-term financial instability have trouble keeping up with the regular payment stream required to make these programs work. The result? Even the most favorable statistics show that about 3 out of 4 people drop out of Credit Counseling programs before completing them.

If you do decide to join one of these programs in order to obtain some short-term relief, be sure to do your homework first. Here are a few tips to help in your selection:

1. Look for a company that actually provides old-fashioned budget advice and counseling. If they want to sign you up right away without first understanding your budget situation, move on!

2. Obtain copies of the contract and read it carefully before signing up. Make sure you understand all of the fees involved. Are there enrollment fees? "Voluntary" contributions? Monthly fees? Extra fees per account? These hidden fees can add up to big bucks.

3. Make sure they work with all the creditors on your list and not just some of them.

4. Don't be fooled by "non-profit" status. That doesn't guarantee you're dealing with a good company. And it certainly doesn't mean the service is free!

5. Aim to find a local company that you can visit in person. Check out your target company with the local Better Business Bureau.

6. Make sure they provide support after the sale. Try calling their customer service number to see if you can get through promptly.

Remember, you can eliminate your debts if you take a disciplined approach to your finances, make a budget and stick to it, and don't use your credit cards unless you can pay off new balances in full each month.

Good luck in your financial future!

How Can I Get Credit Card Counseling Debt Consolidation?

Are you deep in debt? Is it too difficult to find a way out? If you need debt help, don’t worry: there are many solutions for your problems, one of which is called credit card counseling debt consolidation.

What exactly is credit card counseling?

If you have been cursing your decision of going in for so many credit cards ever since you got in debt, the credit card counseling industry professional will be on your side.

You can team up with your counselor to effectively learn and practice a debt management program. Your credit card counseling sessions will help you acquire education and the skills to face a kinder, gentler future, free of debt. They will teach you to avoid destructive spending
habits and lax payment patterns of yesteryear, which put you in debt. In place of these, you will be soon transformed into a responsible and conscientious consumer.

How do I begin with credit card debt counseling?

When you start with a credit counseling program, your ultimate goal is to become debt free. This means that you are driven to eliminate all debts; and will do whatever it takes to get there. The crucial point for your long-term survival is to lose any fear of appearing unknowledgeable.
You should ask questions--and plenty of them. If you still don't understand, request that your counselor explain it again. Do your research your self also. Check your debt counseling company with utmost care.

What are the components of credit card counseling?

One important component within your credit card counseling program may be a form of debt consolidation--of which your credit card debt may be a part. Try to find out before forging ahead on this course of action what possible 'side effects' may be.

You should inquire about things like whether or not you'll be able to use any of your cards when you choose to consolidate debt. Generally, most consolidation programs require you to forfeit your cards. You have to be the judge of how much importance this holds. If you are serious about getting appropriate debt relief once and for all, do not rack up any more credit card debt.

Make it a top priority to eradicate your unsecured debt as well, when you opt for consumer credit counseling. Get rid of your debt today by signing with the right debt company.

The Truth About Debt Counselors

Not everyone believes that credit card debt counseling is beneficial and there are various reasons for that. Some people just read articles in the newspapers or find advice on the internet and take that as the final thing. So they don’t feel the need for credit card debt counseling. Some others feel that credit card debt counseling companies are just trying to make quick money by telling you the obvious i.e. by telling you something that is being advertised everywhere. However, the most important reason arises from the fact that not all credit card debt counseling companies are genuine and of those that are genuine, not all credit card debt counseling companies provide good advice. So, choosing a proper credit card debt counseling company becomes a critical factor in determining the success of credit card debt counseling. Always go for a reputable credit card debt counseling company, even if their fee is a bit higher. Remember that a proper credit card debt counseling can help you in not just eliminating your credit card debt, but eliminating your credit card debt in a way that is so cost effective as to more than offset the fee credit card debt counseling company is charging you. Moreover, proper credit card debt counseling can save you a lot of time and energy that you would have otherwise spend in studying all about credit card debt, gathering information about various credit card debt elimination measures and comparing these measures. Further, these credit card debt counseling companies can present more than one solution to you from which you can choose whatever appeals the most to you. These credit card debt counseling agencies can also get your credit card debt settled much quicker than if you were trying to do it all by yourself (and without any credit card debt counseling). Also, credit card debt counseling could bring to light things which you would not have been able to see e.g. risks with the approach you were thinking to adopt or a futuristic view of things. Moreover, a person who earns his/her bread by practicing credit card debt counseling as a profession, would know the tricks of the trade which no one else would even have an inkling to e.g. pitfalls of a particular debt consolidation offer, or advantages of another offer etc etc.

There is no doubt with regards to the benefits that credit card debt counseling can bring to you. However, you need to be careful and avoid the fraudsters and pick up someone who has a good reputation.

Debt Counseling Solutions for Credit Repair

Is debt counseling a solution for credit repair? Debt Counseling Services and Credit Services are Organizations that are sponsored by most of the creditors. Most Debt Counseling services are nonprofit organizations; however there is few that are on their own. Before you can contact a Debt Counselor you must have some source of income. The counselor provided you will often contact your creditors and alert them that you are making the effort to repay your debts. Once the creditors have been contacted, the organization will next work out an agreement that works with your current budget. After a decision has been reached you are expected each month to make a payment toward paying off your creditors. Your money goes first the organization where you have asked for help, and then is forwarded to your creditors. Once the creditors receive your money, the Counselors ask the creditors to deduct a small amount of funds to pay for their services. There are some debt counselors that will waive interest on your balance, however, most counselors will not. If you are unable to meet your payments each month you might be required to pay late fees. The only real advantage you have by using a Debt Counseling Agency is that you won’t see bankruptcy on your credit report although the two are similar. The best solution then for repairing your credit is taking the ball in your own hands. If you take back the control that was robbed of you, you have the advantage of getting out of debt without further complicating your situation. One way of taking back your control is to set up a monthly budget plan that works to payoff your debts and leave you enough funds to survive. Survival takes less than most people believe in the sense we often purchase items we don’t really need. If we purchase minimal grocery necessities and other necessities we will find more funds available. There are several solutions for cutting back on house items for cleaning. Generally, soap and water is sufficient for cleaning your home. Better yet, if you have laundry detergent you can clean carpets, wash windows, clothes and so on. One solution is possible to handle multiple tasks; therefore buying multiple products for house cleaning is often a waste of money. The advertisements that tell you this product works better than the other is often a gimmick to lower you into a debt. Another idea is it is possible to cook dinners that last for more than one day. Also, you could pack a lunch instead of buying out when you are at work or on a trip. If you are taking trips regularly and it isn’t for business purposes, you might ask yourself how you can cut back. When you cut back on trips you are cutting back on gas mileage, meals, and hotels and so on. Anytime you can find a solution to cut back you is making effort to repair your credit as long as you are spending the savings on your bills. If you are trying to save money for trips or items for your home, you might want to put this off until you get your bills paid. Remember when you pay off your bills first, money will flow more freely for other desires in life. If you are having difficulties meeting monthly obligations contact your creditors and explain your situation. Many creditors will work to find a solution rather than taking a complete loss. Be ware that some creditors are greedy and don’t really care how hard times are for you. These types of creditors want money and they want it now! The best solution then for dealing with creditors is to payoff the most imperative bill first and work your way through each bill. If you have bills that are not necessary terminate them for a short-time until your credit is repaired. Bills such as cable or satellite, Internet if not used for work and other entertainments can wait. Bills are a part of our daily lives and avoiding bills is not a solution for repairing credit. Therefore, Debt Counseling is not the best solution for eliminating debt.

Credit Counseling: Helping You Navigate Through Your Credit Card Debt

Credit card debt is the number one form of debt for Americans and continues to swell even more every year. When economic times are tough credit cards get even more use and for items they would not normally be used for, like groceries and gas. When this happens you are paying interest on daily essentials and paying more for them down the line instead of using your credit cards for emergency or large purchases. When anything is charged on one of your credit cards it is subject to interest rates and often paid off at the minimum payment over a period of years. So, one tank of gas or one trip to the grocery store for a week’s worth of food will literally take you years to pay off!

Credit counseling is a form of debt management that allows you to meet with a trained and often certified debt specialists with information about all areas of debt management include debt consolidation and debt negotiation, who can take a look at your current credit card debt situation and advise you on the path through your credit card debt and to a brighter, more stress-free financial future.

Before you journey out to find a credit counselor, take the time to put together a list of all your credit card accounts with the following information included for each: creditor, creditor contact information, current balance, monthly payments and interest rate. This is the basic information about your account and can help with the process of planning to get rid of that debt. For this article, we will cover the two main forms of credit counseling and the other ideas surrounding it. These include debt consolidation and debt negotiation.

Debt consolidation is the form of debt management that allows you to request a loan that will be used to pay off all other, including credit card, accounts leaving you with only one loan with one monthly payment and one interest rate. This can often bring instant relief from harassing phone calls and letters and can lower your monthly payments and overall interest rates. These loans are available in secured and unsecured like other loans and this is decided by the level of borrowing power you have.

Debt negotiation is a form of debt management that allows you or a representative for you to contact your creditors and negotiate with them to lower monthly payments, interest rates or come to a settlement agreement to pay off the loan or account balance at a lower amount. This can be intimidating for many debtors to do, but with the help of a credit counselor the process can be rewarding and successful.

Credit counselors can also offer other credit card debt elimination services like helping you put together a smart pay off plan, plan for the better, smarter financial future and work with you on budgeting and sticking to a monthly budget. When considering the options of credit counseling and they can help you find the best way out from under credit card debt and help you avoid getting into the same situation in the future. Credit counseling does not have to be a hard experience with embarrassment and ridicule, it can be a light, supportive process with the right credit counselor and credit counseling services firms behind you.

Are Debt Counselors on my Side?

Are you tired of hearing the phone ringing off the hook because debt collectors are continuously calling? For those individuals that feel that they are buried under an impossible degree of debt, it may be time to consult a debt counselor. Debt counselors are individuals that can help you get your debt under control, as well as help you establish a reasonable budget so that you can successfully avoid issues with severe debt in the future.

Debt counseling is an alternative to filing for bankruptcy or applying for a loan to consolidate your debts: an excellent alternative. First, filing for bankruptcy you'll find your credit rating may wind up irreparably damaged and you run the risk of losing your personal property in some instances. Secondly, although many people apply for and obtain a consolidation loans to successfully payoff their creditors, the truth of the matter is that the debt still exists and that the spending habits that got the individual into debt in the first place are not addressed. Subsequently, even after getting a consolidation loan the individual remains in debt and further, places themselves in financial jeopardy: consolidation loans often require that the individual receiving the loan have some kind of asset to be used as collateral to be confiscated by the lender if the borrower defaults on loan payments.

In contrast, contacting a professional in debt counseling will allow you to work in conjunction with the counselor to create a reasonable repayment plan. Further, once a repayment plan has been enacted, the debt counseling service will assist you in creating a reasonable budget. Thus, over time you'll be able to pay off creditors, stop those nagging phone calls, and establish a budget that will keep you out of financial trouble in the future.

Credit Counseling: Find a Positive Way to Handle Student Loan Debt

Student loan debt can be an intimidating and sometimes sudden thing to face, but with the right tactics and actions you can find a way out from under your imposing student loan debt and work toward a brighter financial future. School loans often come to the surface right after graduate and put a damper on your feeling of elation and accomplishment, now you are not only faced with starting a new life on your own and finding a job, but also paying back all the money you borrowed over the time of your academic career. If you had to drop out of school, you are also hit with the same realization, though there are deferment options for extreme situations, like medical illness and others.

If you are considering the options of debt management that work the best for school loans and debts, credit counseling can help you find the answers you need. Credit counseling companies are abundant and often offer services for free or little cost, depending on your financial obligations and reality. Many credit counseling organizations are non-profit offering services and help for free. Credit counselors are often trained well in the different areas of debt consolidation, debt negotiation, credit repair and planning for a successful financial future. They should also have a vast knowledgeable about the world of school loans and the different tactics that can be used to help pay them down or offer settlement options to your creditors.

Before you start looking for a credit counseling firm it’s important to get a straight shot look at your student loan debt. This means making a list of all your loans with the following information: creditor, creditor contact information, current balance, interest rate, current or proposed monthly payments and any other pertinent information you may need to assess your debt. Then total it all up. This may be difficult and bring you into a shattering reality, but you need to know the depth of your debt to ensure you find the right credit counselor for your situation.

When considering a credit counseling company or organization it’s important to do a little homework and make sure you are working with a credible firm before sharing any financial information or signing a contract with them. You can do this by starting with the company’s web site you are most interested in. Look for displayed certifications, contact information, staff qualifications and information, services offered, potential fees and real customer testimonials. They should also have a physical address listed and have a professional looking site that is easy to navigate and not trying to sell you products or unrelated services.

For the first meeting, make sure you take your list and full information on the school loans you are wanting to work with and an open mind. A credit counselor should look over everything with you and share with you what they think would be the best course of action, however they must also share with you all other options you have and how to go about those options if you are interested in any of them. Some of the most popular options are debt negotiation where you can negotiate a settlement offer and pay off a loan at a lower price than the current balance. You can also negotiate down the interest rate or monthly payment if need be. Credit counselors have experience with this and may offer this as a service for you, to help relieve the stress you are facing with your student loans.

Debt consolidation should also be an option they offer and share with you. This involves offering you a loan that will cover all your other loans, paying them off and leaving you with only one loan with one monthly payment and one interest rate. This can offer immediate relief to your credit report and score as well as stop any harassing phone calls or letters you may be dealing with.

Regardless, of the credit counseling services you decide to go with or the company you work with, you should keep an open mind and discerning eye. This will help you find credible, solid help in dealing with your student loan debt and help you on your way to a more secure financial future.