Credit counseling is a service provided by specific agencies to help consumers who do not have the means to repay their debts, as well as businesses facing financial struggles.
With the help of a credit counselor, a consumer or business can often work out an arrangement to decide their debt without facing angry creditors or going through the long, complicated, and damaging process of declaring bankruptcy. You can also manage your debt without going bankrupt via various online sources.
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A credit counselor will contact credit card companies and other lenders and negotiate lower payments or interest rates to make debt repayment easier. Some also offer debt management consulting to help clients create a new business plan or family financial plan to reduce risky behaviors and become more fiscally responsible.
Most reputable credit counseling services are offered by non-profit organizations with the goal of helping struggling consumers reduce their debt-not making money from others' problems. Your agent should add up your monthly credit payments and add a minimal processing fee to cover administrative expenses.
If you feel overwhelmed by debt or have trouble making your monthly payments on credit cards, store accounts, mortgages, or other forms of debt, you could probably benefit from the services of a credit counselor.
It is possible to get out of debt on your own, but some expert guidance from a concerned, accredited organization can make the process quicker, easier, and far less painful.
Crediting counseling is a good way to demonstrate to your creditors or to a collections agency that you are actively working on repaying what you owe.
A credit counselor will also provide guidance on the most effective ways to get rid of debt, minimize interest payments, and develop smarter spending and saving habits.