Figuring out If You Need Credit Counseling Service

America’s debt are running at a record high. More and more people are registering for credit counseling services. It is roughly estimated that half of the people who are enrolled for debt management will successfully finish the plan, while other will fall out.

Credit counseling is a multiple billion dollar industry. There is a reason for this and its called ‘fair share’. When a consumer enters into a debt management plan, the credit counseling service negotiates lower rates of interest and undertakes to make the payments every month on the behalf of the consumer why a cheque or electronic transfer from the money that the consumer gives them every month. Many of the credit counseling services receive a cut from this amount as commission from the lenders. It is exactly for this reason that there has been some criticism about ethical standing of credit counseling services. You may find yourself in a situation where you might feel pressured to enter into a debt management plan even when you don’t need it. Many so-called credit counseling services are now simply targeting people who are not facing a debt crisis but are simply disgruntled with the interest rates that they have to pay on the loans. Of course, this would not be the practice for a reliable credit counseling service. However it is prudent to be absolutely clear in your mind as to whether or not you are in the need of a credit counseling service or not. Being caught in the hands of an unscrupulous credit counseling agency is the last thing you need as entering into any repayment plans with them can hurt your credit rating.

If you are able to pay your bills in full every month on all your credit accounts in any most certainly do not need a credit counseling service. If you feel that the interest rates you are paying are too high, it may be a simple matter to renegotiate the terms with your credit card company simply by requesting them to do so. If you have an offer from another credit service provider who is offering you a lower rate of interest to show to your current creditor, then even better. Showing that you have a choice to move your account with another creditor might provide impetus to your current lender to lower interest rates.

You can consider a full-scale credit counseling service if you are having any of the following problems:

1) you can’t manage to meet the minimum payment on your credit cards

2) you have been late paying one or more of the bills consistently on three or more occasions.

3) You are under debt and are being harassed by creditors and collection agencies.

4) You need help in renegotiating repayment terms with your creditors as your efforts to do so have failed.

5) If you were to in debt and are unsure whether you can ever manage to pay your loans back. A credit counseling service will be able to determine the you whether they can cut down your payments enough to manage your living expenses as well as getting out of debt or do you need to employ other means such as filing for bankruptcy.

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