Introduction to Credit Counseling
It is generally advised that when credit problems are a result of bad money management and high unpaid debt with credit cards and other unsecured debts, a person should consider Credit Counseling. This option is suggested to be explored before contemplating bankruptcy.
There are many aspects of credit counseling that consumers can do themselves. But then again if they were capable of doing what it takes, they would not have found themselves in place where they require credit counseling.
There are other aspects of credit counseling as well such as enrollment in debt management plans to pay off debts that are typical to credit counseling services.
However, beware of the credit counseling services that exist for the sole purpose of enrolling people in debt management programs and earning a cut from your creditors.
Reputed and free credit counseling agencies will offer genuine advice with budgeting and planning and will only offer debt management program if your debt problem cannot be solved with those methods.
We will discuss how to find legitimate credit counseling agencies later on in this page.
Credit counseling and its debt management plan are considered a step before filing for bankruptcy. In fact the new bankruptcy rules require credit counseling before a consumer can file for bankruptcy. The trick always will be finding legitimate operators. However, this task is not so difficult anymore. A complete list of federal approved credit counseling services and agencies is available online. Also, recently there has been action against several credit counseling agencies that were not adhering to their non-profit status.
In fact you should be extra careful when dealing with credit counseling agencies as they have come under a lot flak and complaints in the past few years. We shall discuss that more later on.
Understanding Credit Counseling and Credit counseling Services
What does a Credit Counseling Service Do
Understanding what you are going to a credit counseling agency before hand helps prepare for a lot of things. Knowing exactly what they do and how they can help can also understand your options better. For example, you do not have to enroll your self in a debt management program if you feel simple budgeting help will solve your problem. Also, most of the legitimate and non profit credit counseling services do not charge for providing this kind of assistance.
When Do You Need To Use Credit Counseling Services
Do you need credit counseling services? Are you in that place where external intervention is required? Learn in which scenarios you should consider taking professional help of a credit counselor.
Advantages of Credit Counseling
Learn how you can benefit from credit counseling services.
Disadvantages of Credit Counseling
Learn about the potential pitfalls and drawbacks of using credit counseling services.
Starting With Credit Counseling
How To Locate a Credit Counseling Service
Locating and working with a reputed and legitimate credit counseling agency service is the most important part. You have to make sure that you are getting the right help and in the right direction. You need professionals to make things better with your credit standing and not some scam that will make it worse.
Difference Between Credit Counseling and Debt Management
Do not make the mistake of associating credit counseling with debt management. Debt management programs can be a part of credit counseling services but not necessarily so. Learn how the two are different and should be kept separate
Effect Of Credit Counseling On Credit Rating
Paying off debt and improving credit rating go hand in hand. You ideally want to accomplish both. Understand how credit counseling can affect your credit rating.
Use Credit Counseling Service Or Do It Yourself
The classic question of all times. Can you do it yourself? Can you perform all the functions of a credit counseling service yourself? Theoritically, yes. But practically, perhaps no. Learn more to decide for your self.
In-depth Look At Credit Counseling
Criticism of Credit Counseling Services
Its no secret that credit counseling services and many agencies have seen a lot of controversy. From complaints being filed to scores of credit counseling services being shut down. Learn what has been going on with these agencies and why.
The History of Credit Counseling
An in-depth look at the origins of the first credit counseling service, the evolution of the industry and the state that it exists in now.
Common Questions about Credit Counseling
Some frequently asked questions about credit counseling and their answers.
Common questions about National Foundation for Credit Counseling (NFCC)
The national body that is the largest conglomeration of credit counseling service agencies. Learn more about it and its role in making free and non profit credit counseling services available to all consumers.