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Is Debt Management, Credit Counseling Help Right For You?

One of the most burning issues in nearly every American household is debt. According to a survey by The Plastic Safety Net, $8650 is the average amount of credit card debt that low and middle income indebted households are in. A lot of people are in denial, nowadays, saying that they manage their finances properly, yet, their debt seems to be showing no signs of abating.

Just look through the following questions, and if you answered yes to any of them, you need credit counseling help:

  • Are you arguing with your spouse / partner frequently regarding financial issues?

  • Do you dread the phone ringing, knowing that it could be the creditors sending you reminders to pay a bill which is overdue?

  • Do you find yourself gambling away, hoping that you’ll hit the jackpot one day, which will help you pay your debts?

  • Are you unable to get sleep, worrying about all those bills that’ll fall due this month?

  • Is your mail box being bombarded with notices of ‘due bills’?

  • Do you pay bills only when you’re sent a red notice?

How credit counseling can help you
Credit counselors will provide you with a custom made plan designed to suit each person’s particular case. The benefits of working with one are:

  • The credit counselor will use the money you pay him / her to pay off your debts. The credit counselor will make your payments on time, and make sure that such payments are updated on your bills

  • You don’t have to fret about making payments to different creditors. Your credit counselor will do it for you.

  • By enrolling the services of a credit counselor, you’ll be able to obtain various benefits from your creditors, including lower interest rates, waiving of late fees, and reduced payments of up to 30%.
Choosing the right credit counselor
Be very careful when choosing a credit counselor. Be mindful of the fact that credit counseling won’t erase all you debts instantly, but will significantly improve your credit rating. Don’t trust companies that advertise themselves as ‘credit repair’ companies instead of counseling, and claim to instantly erase all your debts. If you’re asked to make incorrect statement on any forms, or anything that may seem illegal, don’t enroll with them. According to the Credit Repair Organizations Act, a credit repair organization must not claim any payments from you until they have fully carried out their part of the deal. You must also be handed over a contract which details you about your rights and obligations.

If managing the payment of your debts is becoming too stressful, and creditors are becoming a source of constant worry, it’s a really good idea to enroll for the services of a credit counselor!

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