payments excluding your auto loan and mortgage loan payments have spiraled to
25-50% of your monthly income, you might need some financial help to get the
problem under control through creditcounseling services. As your situation
is painful right now, you don’t need to fret as you have lots of options that
you may resort to in order to close the doors on your credit card debt. One of
them is to seek the help of a credit counseling agency and the other is to get
help from a debt consolidation company. While a reputed debt consolidation firm
or a credit counseling agency may assist you in repaying your debts with ease,
an unscrupulous agency may saddle you with outrageously high fees and leave you
into even more serious financial misery. Have a look at some tips that can help
you exterminate your financial worries once and for all.
1. Consider self-help initially: Even if you hook up with the most trustworthy debt
consolidation or credit counseling agency, you’ll still be liable to pay some
kind of fees. You must always remember that this money could well be used to
whittle away your debt if you helped yourself. If you’re all on your own, you
might be able to grab low interest rates by working out an alternative debt
repayment plan with your creditors. Call your creditors; tell them about your
financial hardship so that they agree to revise the terms and conditions on
your credit card accounts. However, if you feel that such steps aren’t
realistic for your financial situation, you must get outside help.
2. Redirect yourself to a better direction: If you’re convinced that your debt issues are so much
out of control that you can’t combat it alone, a reputable non-profit credit
counseling agency may just be the right option for you. You must check the
credentials of the counselors and stay connected to only those agencies that
have committed to certain ethical and professional standards through the NFCC
(National Foundation of Credit Counseling) and the AICCA (Association of
Independent Consumer Credit Counseling Agencies).
3. Stay on high alert for costly financial mistakes: If you agree to a debt consolidation or a debtmanagement plan, the debt consultant may tell you to pay the further bills to
them and they will disburse them to your creditors in due time. This might be a
fine option for you but you must check whether or not the agency disburses off
the money on time. If they are late while making the payments to your
creditors, this may hurt your score in the long run.
4. Make sure the plan that you choose is the best route: Be wary of all those agencies that push you into
accepting a plan before even reviewing your present financial situation. The
actual truth may be that you may not even need to resort to such a plan. It
often happens that you get back on track by following the advice that is
provided by the agency. Consider that you may not be able to seek or use new
credit when your plan is in place.
credit cards and follow a frugal budget if you’re keen on exterminating your
financial woes within a short span of time. Save a considerable amount of money
that you make in a month so that you can treat your debts with ease without
having to borrow money at sky-high interest rates. Opt for debt consolidation
if you feel that you can’t manage your debts on your own.