Credit Counseling

Here is information on how credit counseling may be able to help you 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 debts repaid on fair terms. As well as help you get out of deby, credit counseling companies also teach their clients how to avoid putting themselves in excessive debt 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 debt problems.

Telltale Signs Of Debt Problems ...

For those who are concerned about whether they are headed for severe debt 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 debt.

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 debt issues head on.

Can't pay the bills anymore? Get 100% online debt relief.
Click here for more info

Who To Turn To When Debt Gets Too Much ...

Often, people who are faced with serious debt problems are at a loss. 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.

A credit counseling agency is 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 the credit counseling company has 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.

What A Credit Counseling Service Will Do For You

A credit counseling company starts off by talking to you about your situation, what type of debts you owe and what your repayments and interest rates are currently. You will need to tell the credit counseling company all of the debts that you owe and they will all be listed.

The next step they will take is to negotiate with your creditors on your behalf to get your interest rates lowered or to make your payments less than what they are. While this is happening, the credit counseling company will help you to work out a budget and set out a plan for you to make your payments on time.

A credit counseling organization can also provide debt management services, which is like an account that you put a monthly fee into and the company, on your behalf, then pays that money to your creditors on time. By far, the most valuable thing credit counselors can provide you is an education on how to manage your money better and how to budget your finances carefully in the future to avoid getting into debt all over again once you have resolved your problems.

For those who are feeling overwhelmed with the debt they owe and seriously considering bankruptcy, they really have nothing to lose by speaking to a credit counseling company before making any decisions.

Some of the larger organizations are :

1. Care One Credit Counseling

2. National Foundation for Credit Counseling 

When selecting an agency, check with the Better Business Bureau to find out if consumers have filed complaints about the provider you are considering. Most importantly, find out if the issues have been resolved.

Make sure to use a non-profit organization. This does not insure that the organization will do a good job, but along with reasonable fees and educational material, it is a good indication of a reliable organization. A good place to start is the Association of Independent Consumer Credit Counseling Agencies, www.AICCCA.org.

Remember that credit counseling agencies cannot erase your credit history. If an agency claims to be able to do so, do not work with them. Under the Fair Credit Reporting Act, accurate information about your accounts can stay on your credit report for up to seven years.

Find out what other sources of funding they receive, who regulates and audits their operation, if they are certified by the International Standard of Operations (ISO compliant), if their counselors are certified and by which association, and if there is a formal written agreement.

Ask if you will continue to receive statements from your creditors showing what interest rates you are paying and the reduction of your debt each month.

Follow up with creditors regularly to make sure your debt is being paid off.  

Credit Counseling Agencies (CCAs) who provide the Care One brand of debt management services are a good choice.

To ensure excellent service, CCAs must now meet an expanded set of standards in order to offer the CareOne brand. These new standards, developed in collaboration with the CCAs who provide the CareOne service, are designed to ensure that every client is treated with compassion and understanding.

The expanded CareOne standards mean that credit counseling agencies who offer the CareOne service must:

• Provide patient, personalized financial counseling and education to every client who seeks assistance, including an individualized assessment of the client’s financial situation in order to identify and help implement the best alternative to address his or her needs.
• Offer each client an opportunity to receive a personalized budget worksheet based on information the client chooses to provide to the credit counseling agency, together with budgeting tips, whether or not the client qualified for or chooses to enroll in a debt management plan.
• Devote at least 1,000 hours per year to community outreach activities that address consumer credit and money management.
• Partner with an educational institution to advance educational offering and to promote general consumer financial awareness, education, and literacy.
• Serve all clients who seek assistance, regardless of ability to pay, creditors owed, amount owed or enrollment in a debt management plan.
• Comply with the membership standards of either of two independent organizations---Association of Independent Consumer Credit Counseling Agencies (AICCCA) or National Foundation for Credit Counseling (NFCC).  

CCA's offering the Care One Service are proud members of AICCCA.

The Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services.

The Association fulfills its mission by establishing a consensus among consumer professionals regarding service standards and professional industry conduct, as well as by establishing and maintaining strong relationships with credit management professionals and consumers.