Consumer Credit Counsiling Helps Rebuild Your Credit

2007-03-08 10:33:40

( Financial )



If you are having problems with your personal finances, you may need consumer credit counsiling to help you get over this rough period. You will need consumer counseling particularly if you are not comfortable facing your creditors or the collection agencies to negotiate for repayment terms. Calls from companies pressing you for payment can be quite annoying, similar to endless calls from aol customer service representatives, so consumer counseling services can provide a shield for you.

Through competent consumer counseling, you can take stock of your current situation and assess where you stand in terms of credit. The counselor will evaluate your credit profile by adding up your debts, confirming your finances through your monthly statements, and asking for your credit report.

You have to establish a monthly budget. You tally your minimum necessary expenses in a month to find out how much you can afford for other payments.

You can ask for consumer credit counsiling to renegotiate interest rates on your amounts owed. Perhaps you can request the counselor to call the credit card company to explain your situation and describe your efforts to avoid getting into deeper financial trouble. It is possible the card company will grant you some reprieve.

Each month, you will then make your payment to the counselor, who divides the money among your creditors.

If you resort to consumer counseling, try working out a consumer debt consolidation program with your counselor. This may involve mortgage refinancing, so you will have to ask for help in preparing a home loan proposal.

Make sure you get a competent counselor. You can contact any regulatory agency that oversees consumer complaints in your state to ask if the professional consumer credit counsiling firm you are considering has been the subject of complaints. Ask the counselor outright how the firm makes money, so you will be prepared.

It will take some time, but consumer credit counsiling can help you rebuild your credit.


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