Getting Help From A Consumer Credit Counseling Service

2007-03-08 10:33:40

( Financial )



If you have been receiving calls from debt collectors or from collection agencies asking you to settle your debts, and you have not been paying up because of the large amount of debt you owe, obtaining the assistance of a consumer credit counseling service could be a solution for you. A consumer credit counseling service can help you to pay off the money you owe through more flexible terms.

If you have several debts that need to be repaid, you can seek the advice of a consolidated credit counseling service which works in the same way as a consumer credit counseling service: the only difference is that all your debts are combined in a single amount. Repayments are done in the same manner as when settling a single debt.

A good credit counseling service can get in touch with your lenders to inform them that you intend to pay them back under a workable repayment scheme. In most cases, the consumer credit counselor can negotiate to lower the debt you owe, lower the interest rate, negotiate for the waiving of late fees and negotiate a longer repayment scheme.

When you go to a consumer debt counseling session, you should be prepared to bring copies of your statements relating to the money you owe, any written agreements you signed in relation to your loans, copies of any correspondences between yourself and the creditors, information on your salary and information on your daily living expenses. Such information is required to assist the credit counselor in evaluating the best repayment scheme possible for you.

Some consumer credit counseling services provide a debt management service which gives you the choice of submitting one lump sum amount; it is then the job of the consumer credit counseling service to pay off the companies you owe; however, this method is not always guaranteed. There have been cases wherein the consumer credit counseling service have been late in making payments, and in cases never make repayments at all. It is therefore suggested that you do a thorough background check (government agencies can provide you assistance on this) with the credit counseling firm of your choice before committing to them.

In selecting a consumer credit counseling service, you should ensure that the company belongs to a reputable national organization, and does not charge a big service fee upfront.

It does not cost much to avail the services of a credit counseling service, and if you look carefully, there could be some associations that exist that can offer you a free service. It should however be noted that the use of a consumer credit counseling service can have a negative effect on your credit standing and credit report.


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