Do I Need Credit Counseling?

Often that is one of the worst questions that you can ask yourself, but be advised you are not alone.  In fact some people have made careers out of helping others in credit card debt and credit card default.

When someone’s finances and debts get out of control, some outside assistance may be needed to get them back on track. Some people turn to bankruptcy to deal with their financial issues, but the damage done to your credit score can take almost a decade to repair. This is why there are so many credit counseling services out there willing to help you find an alternative method for getting out of debt.

These counseling services were, in fact, assembled to create alternatives to bankruptcy. Most of these companies (especially those affiliated with the National Foundation for Credit Counseling) only charge a small fee for their help. Furthermore, due to new laws concerning bankruptcy consumers are now required in some states to undergo credit counseling 180 days before filing procedures begin anyway. This new requirement is definitely testament to the procedure’s relevance and effectiveness.

A Brief History of Credit Counseling

One of the first institutions to dominantly offer credit counseling services was the National Foundation for Credit Counseling (also commonly known as Consumer Credit Counseling Services). Their main focus was to provide help for debtors that would allow them to form alternate payments plans while also securing them lower interest rates. These credit counseling services and their affiliates can still be found in almost every city in the US.

In response to the National Foundation for Credit Counseling’s dominance in this industry, many competitors began to appear. This definitely makes sense considering the industry today has exceeded seven billion dollars. However, not all of the people wanting to benefit from this high figure have your best interest in mind. Fraudulent credit counselors do exist, and it pays to wary of them.

Before you begin trying to select the best credit counseling service, there are a few processes that you should consider.

Be Sure Your Credit Counseling Provider Is Legitimate

Along with the boom of credit counselors that came into existence over the past decade, there have also been some fraudulent schemes that were designed to take advantage of people looking for an easy way out of a rough economic situation. Not all credit counselors are legitimate, and it’s important to stay wary of fraud. “Fly-by-nighters” could easily run off with money you’ve given them and leave you in more serious trouble than you stated with. However, if you go with a trusted, reputable source for your credit counseling, you can count on getting effective results and successfully avoiding credit counseling scams.

How Do you Know If You Need Credit Counseling?

It’s safe to say that many individuals are resistant to the idea of receiving credit counseling as a solution to their financial issues at first. However, its apparent that at times an outside perspective is best for assessing the full situation. Credit counselors are skilled at negotiating lower interest rates, and know more about the process than the average person, so they are probably your best chance for getting you out of a tough financial crisis without resorting to bankruptcy.

Some signs to look out for that might suggest you need credit counseling include the following:

• You are constantly being contacted by your creditors to pay bills

• Can’t keep up with the minimum payments on your credit cards

• You cannot avoid making late payments

• You have been unsuccessful with your attempts to work out alternate payment plans with your creditors

If any of the above mentioned descriptions even partially describe your financial situation, credit counseling may be your best bet for an economic recovery.  Asterisk Asterisk hehe, Make sure that you check the credentials of your credit counselor!!!!!!

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