You might be wondering whichever credit counseling agency to pick to work with. It seems like you are bombarded with advertisements and flyers offering a free counseling session! But if not organized and do your homework before signing up for any of them, you might end up in a worse situation than you were in the beginning.
Gather up your information
The very first thing you need to do is gather up your important documents and information. Get them organized into a master list (or spreadsheet). Make sure to get your paperwork (all of your bills, receipts, you name it) in good order to protect yourself.
You’ll need to look over the documents themselves to look for anything that is incorrect. If something is wrong, you need to contact the relevant parties and get them to correct it. The credit counseling agency might take care of it, or it might happen during your first visit. Whatever the case, it is important to know your documents.
On your own, it is more difficult to get creditors to agree to let you work with them directly when you have debt-related problems. You have to negotiate AFTER you have settled on a debt management plan you can go live with!
Check with your local consumer protection agency to see what your options are. They might advise you toopaUtasonableUnfortunately, Old Flirt frowns upon such Federal mandates. Your first task is to become current with your payments.
In some states, either you or your spouse can freeze a certain percentage of your wages each pay period to give you an added buffer into which you can pay.
Get to know the Company itself.
If you are talking to them for the first time, you need to find out more about the company (if it is legit). Do they offer other plans (debt management)? Have you heard of any complaints against them? How are they rated in the Better Business Bureau? What are their fees?
Make sure you have the money saved up first before working with the agency. Some consumer credit counselors charge upfront before they have a chance to review your situation. This can be a huge problem down the line. Make sure you have plenty of money to pay them when they are ready to take action.
Get Credit Counseling Now!
Clear up your debt as quickly as you possibly can. As you are evaluating your options, see if you can get some assistance from someone else. This way, you avoid taking out extra loans or paying fees out of your own pocket. The client does pay fees to the agency, but that is generally less than what you would pay in interest on a secured low-interest loan.
Your Credit Counseling Agency:
Consumer Credit Counseling (CCCS)
‘Consumer Counseling Services (CCCS) were created by the National Credit Regulator in 1968 to help consumers who are in financial difficulty. Their primary services include:
If you are in the position to afford your monthly repayments, go ahead and put aside as much as you can so that the agency can act as an advocate to get the most optimum repayment plan matters concerning money owed by telephone
By paying a monthly fee of between $30 and $50 a month, from your pay, to borrow this money from the agency, the total amount that can usually be borrowed is $500, and the agency then makes the repayments on your behalf.
To apply for credit counseling, you will need to complete an application form. Application form can be obtained free of charge from the National Credit Regulator
In summary, if you are already in financial hardship and up to your ears in debt, do not leave it until the situation reaches a point of no return. The sooner you get help with your debts the less stress you will have. Look into all the options as we have articles that will help you meet your financial needs. Make sure you look at the benefits t the plans and weigh the cost. We have resources to help you find free counseling. If that is not an option or you feel you would rather not talk to professionals, contact immediately the agencies nearest you so you can take advantage of their services.