Consumer credit counseling debt consolidation
Are you neck deep in debt and meeting payments towards your debts are becoming difficult. In such a situation you can take the help of a consumer credit counseling organization that can help you out by consolidating your debts. There are a number of such organizations that are functioning to help people like you to manage your finances in a better manner. These organizations are usually non-profit ones but there are some that might charge you fees.
How does this work?
When you approach a consumer credit counseling debt consolidation service then you are required to inform them about your debts and also about your income and assets. It is better that you take along details about your creditors and the debts that you owe them individually.
Once you decide to work with this organization then you are appointed a counselor who would assess your financial condition and guide you on how to manage your finances. The counselor would also devise a plan of repayment to the creditors.
Basically these counselors would speak to your creditors and would ask them to lower your interest rates and also reduce your late payment penalties.Usually the creditors agree to such requests because of the scare that you would file bankruptcy and the debts would get discharged.
After your creditors have agreed you are supposed to make single monthly payments to the credit counseling firm who would then disburse the payments to your creditors according to the plan. This payment is named as debt consolidation where you are supposed to make a single payment towards the debts every month and all your debts are clubbed together.
Many of such organizations would also help you in qualifying for a debt consolidation loan, which is taken at a lower interest rate as compared to the combined interest rates so that you payments are reduced and you can come out of debt fast !
Such organizations are usually able to reduce your debts by almost 30-40% and make it easier for you to make your payments.
Advantage of taking this plan
There are a number of people who opt to deal with their debts on their own. However, it is always better to take professional help because of a number of advantages associated with this. Some of these advantages include:
- It stops creditor harassment. The creditors are not in touch with you directly and all the communication takes place through the counselors.
- Your debts are reduced.The agency tries to reduce your debts to approximately 40%.
- You make single payments.With the help of this debt consolidation plan you are required to make single payments towards the debts.
- Helps you in managing finances. With the help of the credit counseling you can learn how to manage your finances and make a budget.
- You can finish off your debts fast. With the help of this program you can manage to finish paying off your debts within 3-4 years and become debt free.
- Increase your credit score. As you pay off your debts your credit score increase and you can manage to qualify for better interest rates in the future.
These credit counseling agencies with debt consolidation plans have helped millions of people lead a debt free life at minimum registration and process charges. It is however, advised that you choose such firms after a lot of consideration and assessment.
Choosing a good agency
Allowing someone else handle your debts is a very big decision and involves a lot of risks. It is hence advised that you make sure that the company whom you choose is certified and recognized.
Here are some tips that can help you get assistance from a good agency.
- Get references from your friends and family members. If any of your known people have taken the help of such an agency then you can take their reference to get in touch with a good agency
- Check the certification and accreditations of the agency
- Check the Better Business Bureau rating of the agency
- Go through the previous testimonials of the clients that have taken the service of this agency.
- What has been the percentage of success of the clients that have taken their help
These small things can help you decide on which firm would be better for your consumer credit counseling debt consolidation.
Where to register?
As mentioned above, choose your agency after considering its details and functioning. There are a number of such agencies that also provide counseling online. Some of the agencies that can help you out are mentioned below.
They provide various programs to help their clients come out of debt. You can contact them at 130 Rumford Ave., Suite 202, Newton, MA 02466, Phone: 1-800-769-3571; Fax: 617-244-1116.
They help their clients by reducing their debts and taking care of their finances. You can contact them by filling their online form for more details on their programs.
They are a non-profit organization helping people with consumer credit counseling and debt consolidation. You can contact them at 9009 West Loop South, 7th Floor, Houston Texas, and phone: 866-889-9347.
They are a non-profit organization helping with Debt Education Debt Management and Credit Counseling services all over U.S. You can contact them at 3350 NW 53 Street, Ft Lauderdale, Florida 33309; Phone: 1-800-790-3882; Fax: 954-590-1221.
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