Debt Consolidation Blog

Posts Tagged ‘avoid bankruptcy’

In the time of economic recession many individuals are being burdened with more of debts and every now and then bankruptcy is being reported. To help them stand back on their feet there is credit counseling. You definitely need the credit counseling if:

• When you find that you can’t even pay the minimum credit card charges.
• In case you are paying late for your utility bills.
• In case you are being constantly hounded by various collecting agencies and creditors.
• In case you fail to crack a negotiated deal with your creditor.

All you need to take care of is, choose the right credit counseling agency or the individual. Few years back, National Foundation for Credit Counseling dominated the scene. It was the non-profit organization which worked with the ultimate aim of negotiating the lower interest rates or the payment plans and helped individuals avoid bankruptcy.

There are hundreds of agencies which are competing with each other. Some of them provide excellent services and negotiate well the repayment plans. But, there are many service providers which are fraud and charge exorbitant fees. While choosing the credit counseling service provider, make it sure you keep in mind that the cost of credit counseling should not exceed the benefits of credit counseling.

When you are looking out for credit counseling service provider you must watch out for:

• Large Upfront cost: Consumer Credit Counseling Services charges a nominal fee of $10 set-up charges. In case you are being asked more than this to pay. It is a warning bell for you. Many-a-times it has been reported that many companies after the upfront payment vanish in the thin air leaving people all the more in the disgusted situation.
• No official recognition: credit counseling firms which have the certification from Association of Independent Consumer Credit Counseling Agencies or National Foundation for Credit Counseling are the legitimate ones. Other should be ruled out from the list. Thus, ask for the certificate proof. As it concerns your financial security.
• Missing payments: keep a check as to how much is being passed on to the creditors and what is charged by the company as any missed or delayed payment can hamper your credit report adversely.
• Unrealistic promises: if the credit counseling agency makes tall promises don’t be lured. If someone promises you to settle your debts for little money don’t give in easily. No creditor is crazy to settle for much less than what he lawfully deserves.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.