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Using Credit Counseling To Get Out Of Debt


Using Credit Counseling To Get Out Of Debt

One way to get out of serious debt problems is to consider using a credit
counseling service. Credit counseling agencies and companies are located
in every major metropolitan center and many small communities as well.
For a nominal fee, and a percentage of the proceeding of a debt
consolidation, they can help lift the worry, stress and strain of debt
from your shoulders. You will need to do a little research first because
there are two types of credit counseling operations, one for profit and
the other not for profit. You can find these through the phone book or
on the Internet and they should specify whether they are for profit or
not. If that is unclear in their ad you can certainly ask them for that
information when you call them. You should also ask them what their fees
or charges might be, both upfront and as part of any on-going
proceedings. If any credit counseling service cannot provide that
information readily or without any confusion you might wish to move to
the next prospective agency on your list. Ask them as well if they have
any brochures or materials about their services that you can pick up or
order online.

Once you have selected your credit-counseling agency of choice then make
an appointment to see a counselor. Bring all of your financial materials
with you including the latest statements from your creditors and a copy
of your most recent pay or income stub. Don’t leave out any information
about your credit history or what you owe now, even if you feel that it
is embarrassing. No matter how bad your story is they have heard worse
before. They will not be able to completely help you unless you are
completely cooperative. Once they have determined the extent of your
debt problems and calculated your ability to repay then the credit
counseling agency will help you develop a debt consolidation plan. They
will contact all of your creditors and negotiate a repayment plan over a
period of time. Your creditors will have to agree to stop harassing you
with collection and court proceedings and you agree to pay so much a
month into an account that will pay back all of your creditors. If
everyone agrees then you end up with a low monthly rate, your creditors
get back as much as possible of what is owed to them, and you are on the
way to redeeming your good standing in the credit community and getting
out of debt.

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