Category Archives: Finance

Lets You Handle Finances Efficiently

In simple terms, counseling implies advising. In the same manner, debt counseling implies advising the person regarding his debt problem. Now a days various agencies provides debt counseling to a person who is facing problem in managing his debts.

Before the debt problem becomes more severe, the person requires a good advice to overcome the debt problem. These debt counseling agencies help the person to become debt free and also make them aware of factors, which are responsible for building up of the debts such as overspending, use of credit cards etc.

It is recommended to person burdened with debt, to go for debt counseling services. Sometimes it has been seen that the people go for various plans of consolidating their debts without having any professional advice. If by chance, the plans suits the person then it’s well and good, but if it doesn’t suit the person, needs and requirements, then it can put the person to even worst condition than before. So it’s better, not to take any chance with your credit position and your finances.

Today most of the debt consolidation agencies provide free counseling session to all its customers. In these sessions, the credit counselor analyzes the individual credit situation and suggests measures to overcome their problem of debts.

Getting professional advice make the task of handling debt easier and convenient for the debtor. Generally the person has other options, such as bankruptcy, in order to eliminate his debts. Bankruptcy affects the credit score adversely. But its better not to go for bankruptcy rather reduce the debt payment by consolidating them.

The agencies catering the debt counseling services not only guide the person but also help him in making repayments of the monthly installments. In other words, we can say that debt counseling services starts from advice to a person and ends only when he becomes debt free. But the condition is that the person must follow the instruction by the agencies.

Counseling sessions generally are on the topic such as money management. If somehow the person gets into the debt, the debt counseling services let the person know the various ways available to person in order to manage his debts. Finally, we can say that counseling lets the person know the difference between desires and necessity of life.

It is well said that a planned and right action taken towards right direction mostly gives a positive result, regardless of any uncertain situation arises. As this is the matter of your finances and the credit score, so the person must be careful in choosing the agency for their credit problem.

Credit Counseling

Specialists advise to contact your creditors immediately when you face difficulties paying your bills. It’s necessary to tell them the truth about why it has become difficult for you to meet payments. If they see your sincere wish to cope with hardships as well as with the debt it will be easier for you to work out a modified payment plan that will make your payments lower to some extent. Debt experts also say there’s no good waiting till your accounts will occur at a debt collector’s hands. This may become a point when your creditors “have given up on you”. To avoid this grief you need to obtain definite knowledge about debt and money management.

Unfortunately, most ordinary people lack this kind of knowledge. What common people know is that debts can be of two types – unsecured or secured. Secured debts are those which have been tied to an asset. The assets can also be of different kinds – it may be your car for a car loan, or your house for a mortgage. In the case you stop making payments, lenders have the right to repossess your car or foreclose on your house. Unsecured debts are those which are not tied to any asset. They usually include debts for various types of services (such as most credit card debt, bills for medical care, signature loans, etc.).

There can be situations when you can’t solve your financial problems even with the most desire and contacts with creditors. These are the cases when professional help is needed. Credit counseling company may become the source of the guidance necessary.

Credit counseling is a good option for those who are not disciplined enough and who have difficulties when creating a reasonable budget or repayment plan. There are numerous nonprofit credit counseling organizations that work with clients to handle their problems with finance. The service is different from company to company. There can be credit counseling companies that provide their service through local offices, the Internet, or on the telephone. The most convenient, perhaps, is to find a credit counseling company that offers in-person counseling. As debt and bad credits are widely spread phenomena in the U.S. you will have no difficulties in finding information about such organizations. You just need to ask you friends or just acquaintances, your financial institution or local consumer protection agency. Such safe referrals may serve to you as additional guarantee that you will turn to a reputable credit counseling organization.

These organizations provide rather wide range of services. It can help you with managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Only experienced specialists work at leading companies. Consumer credit, money, debt management, and budgeting are the spheres all the counselors are certified and trained at. All the contacts are held with the most attention to your requirements. You will discuss you financial situation with a professional counselor in details. You will be assisted and professionally guided when developing an individual plan to manage your money and debt. At the very beginning you will get an initial counseling session that usually lasts an hour. Then follows a suggestion of further on sessions. So, being provided with experts’ help you will definitely improve your financial situation.

Understanding the Ins and Outs of Credit

Credit counseling is an option for individuals whose personal finances have gotten to the point where they have buried themselves financially, either through lack of financial discipline, or from external circumstances out of their control. A reputable credit counseling agency should be experienced in finance and be staffed by professionally trained credit counselors.

Government approved credit counseling agencies by law are non-profit companies, meaning that their primary concern is their mission to assist those in need rather than to make a profit. Not all credit counseling companies offer the same services and although are primarily non-profit, they do not charge the same fees. Be sure to ask what services they offer before deciding which agency to work with.

Quality credit counselors will offer the following services:

Consumer Credit Counseling

They should offer at least one, preferably more, counseling sessions in which they advice you regarding your specific financial situation and the steps you need to take to improve circumstance. Areas covered should include, but may not be limited to budgeting, money management, credit usage, home purchasing plans (if you do not own a home), and personal savings goals.

Consumer Finance Education

Classes and/or seminars to assist you in learning how to better manage your money and how to use credit wisely. This education should be beneficial, informative, and to the point. It should make a difference in your financial future, if you apply the knowledge learned from the instruction.

Debt Management and Consolidation Plans

With a Debt Management Plan, a credit counselor basically takes over the maintenance of your unsecured credit accounts. The credit counselor will effectively consolidate your debt allowing you to send one monthly payment to them who in turn then makes payments on your behalf to your creditors.

A quality credit counselor will first notify your creditors of your participation in their Debt Management Plan and then negotiate with them for lower, if not waived fees, lower monthly payments, lower interest rates and account re-aging. (An agreement reached where the account longer is listed as delinquent on your credit report.

If your circumstance is due to external issues (such as a sudden job loss) debt management and discipline may not be your problem and a debt management plan may not be in your best interest so it is important that you find a credit counselor that will take the time to determine if this is a viable option for you to take.

Credit counseling has no immediate affect on your credit score whatsoever. The affect shows up after your debt is cleared and you have reestablished credit. However, your creditors are likely to indicate your participation in a debt management program in your credit file.

Whether your participation in a Debt Management Program will help your immediate ability to borrow money depends largely on who it is evaluating your credit. Some lenders will not work with consumers that are under debt management programs. Others lenders, on the other hand, view your participation in a debt management program as a sign of a serious commitment and willingness to meet and maintain your obligations.

Credit counselors will usually try to make a plan that will bring you to a debt-free status in 2 to 4 years. Credit counseling agencies also get funds from donations made by the public as well as contributions from other organizations. As a result, your out of pocket expense for counseling should be no more than $50 per month.

Another important aspect for you to be aware of is because they benefit when you pay your debt, credit counselors that offer Debt Management Planning receive additional funds directly from the lenders involved. This is a normal and accepted practice in the industry, being aware of this fact will assist you in your evaluation process when choosing a credit counselor. Counselors whose primary source of income comes from the lenders should cause you to ask yourself who are they really working for, you or the lender.

A sign that a credit counselor may be more interested in the kickbacks from creditors than your personal situation is that they only offer the Debt Management Program and the consumer education aspect is not made available, or is only offered through dvds and printed materials and the personal training, in groups or one on one, is not part of the deal.

Although there are several excellent credit counseling organizations out there, you should be aware that with the tremendous need and growth in the credit counseling industry, there has been an emergence of numerous firms calling themselves credit counselors when they are, and act as nothing more than an extension of the debt collection aspect of the credit industry itself.

In August 2006, President Bush signed the Pension Protection Act of 2006 which includes new laws that target unethical credit counselors. This is excellent news for you. Armed with the very specific knowledge brought forth in the Act, your awareness of exactly what a non-profit credit counseling agency should or should not do under the new laws places you in a position to locate a quality credit counseling organization, one that has your best interest at heart.

Credit Counseling

Credit counselling is a form of debt consolidation that anyone can get from a credit counselling firm or even your local bank. As the number one alternative for debt consolidation loans and bankruptcy – credit counselling means having or making a financial plan that works for your personal situation. So if you are finding that paying your monthly bills is getting a bit overwhelming, you should consider credit counselling before you file for bankruptcy.

Why is Bankruptcy Bad?

Bankruptcy can seem to be a best way out of an overwhelming debt situation – but you should consider all your options before resorting to bankruptcy. Bankruptcy affects your credit rating for quite some time. Though the reason one claims bankruptcy is because they can’t afford their bills, ironically, it costs money to go bankrupt. So even though it seems bankruptcy is the answer, make sure there isn’t a better way before you go entertain bankruptcy.

Debt Consolidation

Debt consolidation is a very common way to deal with financial distress. In a typical debt consolidation, existing debts and mortgage payments are consolidated into payment. Sometimes you can even negotiate a lower interest rate. For most, however, the term “Debt Consolidation Loan” is what people think of when wanting to get out of debt.

Consolidation Loan

You can approach a bank or financial institution about combining or “consolidating” your debts into one loan. Consolidating your debts into one loan often means paying only one bill instead of several. Even better, you get rid of any collecting companies that call you night and day to create even more stress on your situation. The bank pays off the outstanding debts and you instead owe one lump sum to the bank directly.

Getting quality credit counselling is critical in order to understand how to get out of debt. You can contact a credit counselling firm that specializes in debt consolidation. Or you can make an appointment with a financial advisor at your bank – it’s free. It really is possible to take back control of your finances with a little advice on how to handle money.

Credit Counseling

For many Americans, credit card debt is a part of everyday life. According to an April 2009 Nilson report, the average American household carried $8,329 of credit card debt in 2008. However, consumer debt and interest can add up quickly, get out of control, and leave you with many unanswered questions. But getting out of debt is not a hopeless cause.

There are circumstances like job loss and unexpected medical expenses that can lead to unmanageable debt. But more often than not, debt problems, particularly credit card debt, arise from not understanding personal finance and not having a manageable budget. When debt gets out of control, counseling is often needed to develop a system to pay your debts, save money and live without acquiring more credit card debt. Regardless of how your finances become unbalanced, you could benefit from legitimate credit counseling if you are:

  • paying bills late or have to pick and choose which bills to pay
  • spending all of your income without adding to savings in order to help cover expenses that would otherwise be financed later
  • making the minimum monthly payments due to creditors
  • behind on payments
  • sinking deeper into debt
  • considering bankruptcy

Credit counseling does not mean debt settlement and it should not hurt your credit score. Be sure to do your research when choosing a counseling company. There are many legitimate companies out there, but there are also companies who exist solely to take your money. Watch out for steep fees and look for accreditation with organizations like the Better Business Bureau (BBB) and the Association of Independent Consumer Credit Counseling Agencies (AICCCA).

What is the Best Way to Escape Debt

Three options exist for those who wish to resolve their debts, and troubled finances: Debt settlement, bankruptcy, and credit and debt counseling services. Troubled economies have become pandemic, spreading throughout the world, and causing rising consumer debt, and troubled finances. High debts, unsettled credit, and financial liabilities trouble millions of Americans. Many men, and women are forced to make a difficult choice: debt settlement, or bankruptcy. Nearly 1.6 million Americans decided in the year 2003 that they could not address their financial difficulties, or inability to maintain proper finances by filing bankruptcy; instead, they jeopardized the veracity of their credit, rather than settled their accounts–possibly, hurting their ability to fulfill, and prepare for future needs.

One must understand the difference between debt settlement, and bankruptcy: Whether one’s troubled financial situation, and questions are the results of illness, unemployment, divorce, or, simply, excessive spending, settling one’s debts is an exasperating experience that should be carefully considered. One should consider the former before filing for bankruptcy if one’s debts have decreased, and finances have improved.

One cannot, properly, make this decision without understanding the bases for such decisions that address troubled financial situations. Consider, for example, debt settlement: This can be one of the most effective ways to address one’s current debt, and difficult finances. It will improve your credit and status; and help end the harassment by creditors, and bill collectors; usually, allowing the client to settle his bills, and help his troubled finances very quickly: in one to three years.

Bankruptcy is another option for those who must, finally, relieve themselves of debt. Bankruptcy may settle one’s bills, but it is, generally, considered to be an act of desperation, viable, only, after all the alternatives have failed. A bankruptcy will haunt the client for, at least, seven to ten years–most people cannot afford to wait such a long time for reasonable interest rates on their loans.

Bankruptcy will, also, result in higher insurance premiums and possibly the denial of several job offers. Filing bankruptcy, according to employers, implies that one is not responsible enough to pay bills, and these prospective employers are afraid to hire employees who are considered to be so untrustworthy, and irresponsible.

Debt settlement, however, is dangerous: One’s credit, and reputation with potential employers and banks, will be damaged in the process, and the inevitable flaws that result must, eventually, be fixed. Most companies that help clients in this process offer two choices: credit repair services or, after all of one’s debt has been repaid, referral to a company that can help rebuild one’s credit.

Debt settlement, though the lesser of two evils, is dangerous, thus, one should carefully research any company related to the subject. Care must be taken to insure the minimal amount of damage. Bankruptcy may be useful as a desperate measure when no, other, option is available, but it is fraught with many unpleasant consequences.

Alternatively, one can entrust these troubled finances to a credit and debit counseling service, as such services have multiple ways to resolve financial difficulties. Such credit and debit counseling service companies are experienced at improving credit, improving fiscal responsibility, perhaps, even, removing the balance from some of one’s credit accounts.

Credit Counseling Services

People are finally taking issues of finance seriously. The ongoing debt crisis has caused a severe jolt to millions of people who are hoping for a speedy recovery. An effective finance management is mandatory, whether or not there is a crisis. It is always important to have a grip over your finances so that it does not take complete control over you at rough times. If one is running a risk in making regular payments, credit counseling service can help to order the finances in a better way.

A lot of people have the tendency to make use of credit cards extensively. It may be quite a fantasy in the beginning but trust me; the interest levies going to eat you up. When debt burden is huge, stop using credit cards and immediately seek help from a professional credit counseling service organization. Make sure not to bump into one of those fake ones who simply claim to be non-profit organizations but are not. A genuine credit counseling service is a voluntary help offered for the financial betterment of people. They mainly evaluate your income and expenditure pattern along with current assets and liabilities. Then, based on the prevailing conditions, a debt management plan is devised by a credit counselor.

A great deal of discipline is necessary to follow the plan accordingly. Credit counselors are all set to help you in reducing the interest charges and eliminate late fees. When you are in a debt management programme, getting new credit is out of question. A new repayment schedule with the creditors can save the debtor from bad credit scores. Four to six years’ time is needed to efficiently manage the finances which can help to repay your creditors in the given span of time. This solution aims to relieve you of mental stress at a very early stage. Ensure that the counseling organization holds a membership in National Foundation for credit counseling (NFCC) or Association of Independent Credit counseling Agencies (AICCA). Credit counseling services, if offered with genuine intention, can really help to eliminate your debt.

Credit Counseling In Special Finance

One of the most important roles a special finance manager can have is that of “Credit Counselor’. Most of the time, we talk about counseling your “no sales” or turndowns, in an effort to hold on to them and possibly sell them a vehicle later on, after they have “refreshed” their credit. A proactive approach to this concept is taking on the role of credit counselor in order to sell these customers a vehicle now, during the sales presentation. Doing so will help you control the process, keeping the customer focused on the “credit decision” and away from the “product decision” until you are ready to do so. Taking a credit counselor demeanor with these customers will also help set and keep their expectation reasonable.

While bad credit may be obvious to someone who looks at credit reports all day, many times a customer may not realize what their credit issues may be. Credit counseling is an effective way to maintain control of the special finance sales process. If the process is done correctly, an applicant’s expectations will be kept at a reasonable level.

So first of all, what exactly is bad credit? Numerous types of credit report problems are considered a sign of bad credit and could cause a lender to reject an application for a loan. Such problems include: missing a credit card payment, defaulting on a prior loan, filing for bankruptcy in the past seven years, or not paying taxes. Other black marks on a credit report include a judgment filed (perhaps for non-payment of spousal or child support) or any collection activity. To many special finance customers, these may be regular occurrences which they do not consider to be bad credit.

The credit counseling process begins with the customer interview. The credit application should be reviewed during the customer interview. Take the time to find out if there are any potential pitfalls. Look for gaps in residence or employment. Find out the particulars regarding the customer’s living arrangements. Do they rent or own; is the monthly expense split with anyone else? Is the income correctly stated and is it verifiable. This process starts the conversation in a non-confrontational manner. Not only do you get to know your customer better, but this process gets customers talking freely about themselves.

Once the application has been fully reviewed, it’s time to move onto the credit report. Remember the objective here is to keep the customer focused on the “credit decision” and away from a “product decision”. Take the time to explore their credit file to see if there is an explanation for any issues which may present themselves.

All too often, reviewing a credit report with a customer consisted of simply marking all derogatory information with a big, red magic marker. Raise all the red flags possible and beat the customer into submission. Public humiliation was supposed to get customers to acknowledge their bad credit, and make them accept that fact. All this is the name of big profits!

Effective credit counseling involves getting a customer to acknowledge their credit issues without the humiliation. Review the complete credit report, mentioning not only the derogatory information but the positive accounts as well. Look for a positive credit reference which can be used to build a case to present to a lender. A previous auto loan paid reasonably well, or even an auto loan that was paid well for long period of time before it was repossessed can be used as a positive reference. Look for patterns of good credit that may have preceded their current credit problems.

Ask your customer if there was something that happened to them that led up to their credit problems. A catastrophic event, such as a major illness, an employer closing or going out of business, a military call-up, or any number of personal tragedies can lead to credit issues. Now is the time for your customers to tell you their story, so you can relay it to your lenders. Review each line on the credit report with the customer. Ask for explanations and make notations where appropriate.

This may take a little longer than you’re used to but it helps set the stage for reasonable expectations from your customer. It also shows them how much work you’ve got ahead of you to get a loan approved for them.

Take some time to explain the process. After the credit review, explain how a lender determines whether to approve an application. Review the S.A.W. principle most lenders use to consider an applicant. – Stability, Ability and Willingness to Pay. Remember that many “D” tier lenders look at more than just the credit score of an applicant, and in many cases, these lenders do not consider the FICO score of an applicant in their approval process. Marginal lenders look at the total applicant picture to determine if the will approve a deal. An applicant with a stable employment and residence history and a decent income stands a better chance of getting approved for a loan, even with a spotty credit bureau, because the lender knows they will be able to collect the payments, even if they are a little late each month!

Explain “debt to income” and “payment to income” ratios to your customers and how lenders use them to determine what vehicles they will qualify for. Many customers want much more vehicle than they can qualify for, their logic being “I can afford to pay that much”. Explain how lenders, using all the data available form the vast number of loans they make, have determined which loans are most likely to be repaid and base their decisions using this date. They know that any payment which is more than 20% of an applicant’s income has a much more likelihood of leading to a default and repossession. Lenders want to collect payments, and structure their approvals based on the data they have. This is especially true if a customer has had a history of slow or late payments on their previous auto loan. The lender figures “if they couldn’t make that payment without some problems, I want my payment to be lower than that!” Explain that excessive monthly obligations eat up a substantial portion of their income, and most lenders will only consider applicants with less than 50% of the income being used to pay their monthly bills, including rent. This is especially true with a customer that already has an open auto loan and was not planning on trading it in. In either case, explain that the lender typically will ask for a co-signer, but you will submit the application and see what they say. Place the decision in your lenders hand, and let your customer bear the burden of meeting the lender’s requirement for approval.

Take a few minutes to explain how equity can help an approval along. Lenders like to loan less than the book or wholesale value of a vehicle to marginal customers. Sometimes a large down payment can convince a lender that an applicant will make the payments, since they have a stake in the loan. Remind your customers that, while many lenders may consider a loan with no down payment, they typically like to see the taxes, tags and fees paid upfront by the customer. Many customers, who say they don’t have any money available for a down payment, will have cash set aside to pay these fees. They do not view these as down payment, so make sure to ask how they plan to pay the taxes, tags and fees for the vehicle they are trying to buy.

Many customers will go from dealer to dealer trying to get a loan. Often times, they apply to multiple web sites touting easy credit approvals for bad credit customers in the hopes that someone will approve a loan for them, or give a better approval than they may already have gotten elsewhere. As a credit counselor, explain that, for the most part, dealers work with all the same lenders. While there may be one or two new lenders out in the market, you know and work with virtually all available lenders. Explain that the call back from these lenders is based on the information provided, and as such, will not vary from dealer to dealer. As a matter of fact, explain to them that multiple applications can lead a lender to turndown an application due to “excessive inquiries”, which may cause a lender to think that the customer is trying to buy multiple vehicles at different dealers.

Setting customer’s expectations to reality is sometimes the hardest part of the counseling function. Explain to a customer that lenders aren’t in it just to help a dealership sell a car, but to insure that they can collect on the loan. Giving a customer a loan that a lender thinks the customer can’t afford does no one any good. Lenders don’t want to make a loan today only to repossess the vehicle tomorrow; they make their money only if they can collect the payments. Explain that, in order to help rebuild their credit; customers with credit issues must “crawl before they walk”. This is all part of the process of rebuilding their credit. There has to be a strong foundation to build on; no one builds a house from the roof down!

Lenders realize that credit challenges usually result in setbacks for these customers. Your job is to help them overcome these setbacks. This is typically the beginning of the process to rebuild their credit. They have to start out with a vehicle that not only will fit their budget, but provide reliable transportation while they rebuild their payment history. Once favorable payment history is on their credit bureau, they can move up to a better vehicle with more favorable terms.

Let you customers know your dealership will be there in the future to let them know when the time is right to make that move. As their automotive credit counselor, you are in touch with to help move them along the path to better credit! Not only will they get an auto loan with your help, but by paying this loan on time, they are well on their way to a credit card and maybe even a mortgage. You can even provide them with a list of banks that provide Visa or MasterCard accounts to folks with credit challenges, or with information which may help them improve their credit reports for free, instead of throwing money away on a scam “credit repair” company.

To review the credit counseling process:

o Review the credit application

o Review the credit bureau

o Look for positive as well as negative references

o Explain the process

o Explain SAW and how a lender looks at the application

o Review debt-to-income and payment-to-income ratios

o Determine the available down payment

o Set the customer’s expectations to reality

o Review the qualifying vehicles

o Review how to improve the loan

o Explain the credit rebuilding process

o Explain “credit shopping”

o The effect of excessive inquiries

Being a credit counselor before the sale will help you close that many more special finance sales. Take the time to talk to your customers about their credit situation and show that you can provide some answers to their problem. If you do this up front, you will establish a relationship with these customers that will allow you to maintain control over the sales process, which is essential for special finance. Not only that, but it prevent you from educating a customer you thought was a no sale, only to send him somewhere else to buy a vehicle.

Should Premarital Counseling

This is one that I was excited to discuss because when people think of premarital counseling, usually it focuses on the emotional aspect, compatibility but not necessarily in-depth finances. I recall last year that a bride-to-be came to me at a bridal show and stated that she had gone through premarital counseling, yet the one area she did not feel comfortable about was finances. It was not something that was really discussed.

In my opinion, if you are going to attend premarital counseling, I believe it is the responsibility of the brides and grooms to make sure that finances is a part of that premarital counseling session(s). Let’s face it we all know that money is one of the top reasons for divorce. That alone says we need to talk about money more, the good and the bad.

Regardless of our economy, when premarital counseling is provided I believe various aspects of money should be discussed including bankruptcy. Not saying it is impossible to find someone that has never been married before, but it is probably rare that you would end up at the altar with someone that has not had a credit card, student loan or other financial obligations. I am not saying that the person has had a bankruptcy but that is a possibility. Therefore, bankruptcy should be a part of the premarital counseling financial discussion.

When brides and grooms are standing at the altar saying “I Do”, many have taken it for granted that they probably discussed their finances. I would venture to say that they have not. Brides and Grooms need to know how to handle financial issues to include if that mate has had a bankruptcy, how long ago it was and if they have the discharge papers. Understand the bride or groom experienced that financial issue prior to marrying you; however, you need to be aware of what creditors were discharged just in case all of a sudden you start receiving collection letters in the mail.

Let’s be honest, bankruptcy is a hard pill to swallow. However, what happened prior to your union you cannot hold against the person. No one is perfect and we all make mistakes. This is an opportunity for brides and grooms to begin anew as husband and wife with a new financial foundation. It is imperative that they discuss what caused the bankruptcy in order to prevent that happening in the future.

If the bride or groom has filed bankruptcy and no longer has their discharge paperwork, they can contact the Bankruptcy Court and ask to get a copy. There will be a minimal copy charge involved; but believe me it will save you in the long run. Both of you will know what creditors were discharged and what your rights are.

Do You Know Where to Find Free Debt Counseling

Debt counseling services can assist with a new budget, or finding money within your old budget. Debt counseling services can provide expert advice from financial experts, free of charge to people that are struggling with the finances and even help consumers to realize that there is indeed light at the end of the tunnel of debt. Where can you find these free debt or credit counseling services?

The first place that you should look for information about debt counseling services that are available in your area is the internet. Through the internet, through government and non-for-profit organizations you can obtain information about how to set up a consultation with a personal finance expert working for the free debt counseling organizations.

Through the internet, there is a wealth of information that is available. You can compare the various services that are offered through free debt counseling services and you can ensure that you are able to find reviews and other information that can help you to make your decision. Seeking information from a variety of forums and other consumers that have taken part in the debt counseling process can help to choose services which are best suited to your financial situation.

Although you can find many services on the internet, be very careful because there are legitimate companies and also non-legitimate companies out there that are looking to take advantage of poor souls who are not very educated in this subject. That is one reason why you should really do a thorough research first.

Debt credit counseling are created to provide the consumer with information that can help the consumer to take the next step in debt repayment. Other services, like debt management services are created to allow the company to take the next steps and take measures like negotiating with credit card companies and other creditors to achieve not only lower interest rates, but lower payments each month and even methods which can be used to settle the debt.

Sometimes the debt or consumer credit counseling services are enough to provide information but some consumers require something extra that can help them to implement the debt repayment plan. For most consumers, debt counseling services are a good jumping-off point when it comes to taking control of the finances and in the future it can lead to debt management services to ensure that the best decisions are being made when it comes to the finances.