Consumer Credit Counseling Agency
If you've battled with debt and can't seem to find a way out, it's time to consult with a consumer credit counseling agency. These non profit agencies can help you create a sound budget and provide advice on the best ways to whittle down your debt. The ideal agency is non profit and employs certified credit counselors who charge reasonable rates for their services. Many companies may look the part, but offer very little in terms actionable advice.
A professional credit counselor will help you create a budget (or create one if you haven't already) that is achievable. They will also suggest spending cuts you may not have thought of. The beauty of working with a credit counseling agency is that you have a professional who can offer objective advice on your financial situation. Are you keeping up with the Jones' or on your way to bankruptcy? Without speaking with a counselor, you might not know until it's too late.
A consumer credit counseling agency is trained to offer solutions, some of which you probably haven't considered. For example, after a consultation they may suggest you change your budget in order to have more money to pay directly towards your debts; they might also suggest a debt consolidation loan in order to lower your monthly payments; lastly, if your debt is overwhelming, they might recommend a well-respected bankruptcy lawyer.
A credit counseling agency should help you create a debt reduction plan, and help you understand the pros and cons associated with the plan. They should also let you know how much your monthly payments will go towards paying down debt, and its intended payoff date.
For the most part, credit counselors focus on unsecured debt like credit cards. If you have large amounts of secured debt (mortgages, car loans, etc.) you are better off contacting the creditors directly.
A credit counseling agency should help you create a budget that is realistic, set achievable goals, and provide you with a solid intro to money matters.
To find a credit counselor in your area, visit www.nfcc.org or aiccca.org. Anyone listed in their registers is a certified credit counseling agency.
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