Understanding the Process of Credit Counseling
Many of us have seen the advertisements on television. "Get out of debt fast!" "We can solve all your credit problems with only one call!" These sound really great but you know that, realistically, one call is not going to solve your credit problems.
If it were so fast and easy to get out of debt the credit card companies and these agencies advertising on television would be out of business very soon. Credit counselors can help you to understand your credit problems and to devise a plan to help you to manage your debt. They do this by providing services to you for a fee or for free if it is a non-profit organization. Some agencies will provide a free debt analysis to determine the best way in which they can service your needs. The following is a guide to help you understand how credit counseling works and if credit counseling is right for you.
The first step you should take is to decide if you do have a debt problem. For some it may be obvious, but for others they may not recognize the problem until they are faced with a collection agency. If you are only making minimum payments on your credit cards, or taking cash advances to pay bills, then you may need to seek advise from a credit counselor.
When you contact a credit-counseling agency, ask questions. Ask about the company and what programs they offer. Contact the Better Business Bureau to find out the facts about their history. Make sure to ask about all fees and charges; you are trying to get out of debt, not obtain more!
After you have chosen a credit counseling agency usually they will take a look expenses, income and debts. Most require you to participate in a debt management seminar, some longer than others to educate yourself about money management and budgeting as well as information on credit and finances. Some agencies charge a fee to attend the class, for others it is free.
You should know that even while you are seeking credit counseling, the company in which you owe money could continue to try and collect by any means necessary. However, most credit companies will see that you are trying to get your debt under control and work with you to solve your debt problems without bankruptcy.
Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and credit counseling information that you can research in your pajamas on his website.
MORE RESOURCES:
 AFP | Your Money One Thing You Can Control: Your Credit Score New York Times, United States - Your credit score, however, is something that you have a fair bit of control over, since it reflects your behavior as a borrower. ... Credit Crisis Collapse What Happens Next? Regional financial experts focus on lending; say credit crunch is ... Market news this week for strong stomachs |
 Calgary Herald | Stock markets end week of credit crunch worries Newsday, NY - Credit-crunch worries continued to weigh on US stock markets Friday, but the hemorrhaging evident for most of the week was contained. ... Video: Stocks Fluctuate After Fed Corporate Debt Plan Easy credit and financial crisis Overseeing Finance's New Era |
 Voice of America | Global leaders seek answer to credit crisis San Francisco Chronicle, USA - At the same time, loan markets everywhere remained broken, especially the critical wholesale credit markets, in which financial institutions lend each other ... Video: Bernanke: More Economic Pain Ahead TREASURIES-Surge in Europe as shares skid on credit woes Stocks down despite government moves to free up credit |
 The Associated Press | US will work with partners on credit crisis: Bush CBC.ca, Canada - It was the 21st time in 26 days that the president has spoken publicly about the credit crisis gripping financial markets and dragging down stock markets. ... Meeting G7, Bush Vows World Economic Fix |
 New York Times | Lehman Credit-Default Swap Payout Could Climb as High as $365 Billion Washington Post, United States - By Heather Landy NEW YORK, Oct. 10 -- In what may shape up to be the most expensive payout ever in the credit-default swap market, sellers of insurance ... STOP FINANCIAL WMD'S: Credit Default Swaps Insurance on Lehman Debt Is the Industry’s Next Test Lehman Credit-Swap Auction Sets Payout of 91.38 Cents (Update1) |
Fears Grow That Tight Credit Could Crush GM, Ford NPR - Standard & Poor's downgraded the credit of both companies and their financing arms this week. AFP/Getty Images Ford F-150 trucks sit at a dealership in ... Video: Money Minute: GM, GE, Oil GM, Ford too big to fail? CREDIT WATCH HITS GM, FORD |
 BBC News | IMF endorses G7 plan to fight global credit crisis CTV.ca, Canada - The International Monetary Fund is backing a plan by Canada and the other G7 countries to fight the worldwide credit crisis, which continues to play havoc ... Video: IMF: Timing right for G7 Credit CRISIS ALERT Press demands some G7 credit crunch punch |
 Boston Globe | Transcript: President Bush's Radio Address FOXNews - The Fed has joined with central banks around the world to coordinate a cut in interest rates — a step that should help free up credit. ... Text of Bush's remarks Friday on the economy Comprehensive strategy to tame crisis: Bush Bush says financial rescue plan big enough to work |
DTCC Addresses Misconceptions About the Credit Default Swap Market MarketWatch - Since that time, the vast majority of credit default swaps traded have been registered in the Warehouse. In addition, all of the major global credit default ... |
 Dividend.com | CME Group Details On Future Credit Default Swaps Market istockAnalyst.com (press release), OR - ... owned in the past (we just rebought CME Friday morning) are positioning for a piece of the very huge (and very troublesome) credit default swaps market. ... Credit swaps dragged out of shadows State Controller Chiang to Treasury Secretary Paulson ... Financials Got You Down? CME Pitches Credit-Default Swaps the ... |
Credit - Google News
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