Credit Counseling services are intended to inform you about personal finance, credit, money, debt and to assist you in learning ways to use credit wisely. Financial services are about more than just fixing immediate financial problems. When you understand how you can change your spending habits to positively affect your financial outcome, you will wonder why it took you so long to seek debt help.
Some of the goals of credit counseling are to:
- Protect your wages from being garnished;
- End debt collectors’ nasty phone calls;
- Avoid Bankruptcy and all of its associated problems;
- Reduce and/or completely eliminate interest on your debts;
- To assist you with the development of money management skills.
Real Credit Counselling involves analyzing your current income, expenses and your debt, then working with you to assist in creating a budget that is based on your personal needs and your financial goals. Financial advice will be offered specifically to improve your current financial situation and to improve your financial well-being. Once you have set the budget you will know if there are enough funds to steadily get your debts under your control again.
The easiest way to fix your own credit (especially if your debt load is well below $10,000 and you have the personal discipline not to continue to get into debt) is through your own efforts. Try speaking with your creditors in an attempt to work with them; go with the rule of “don’t ask – don’t get”. Creditors are aware that receiving some money is much better than receiving none. However, before you call, it is important to design your plan, be specific when you speak with creditors about what you can do. Do not agree to something that you know you are not able to stick to – this will only make matters worse. Trust me on this!
However, if you feel you are unable to work with creditors by yourself don’t worry, you can always go to a Licensed Credit Counseling Agency who will do all of the above for you and more! They will work with you to create a repayment schedule based on your budget and your ability to repay. This plan may include a reduced payment schedule to creditors, a decrease in interest charges, elimination of late fees and over-draft fees, all adding up to big savings for you.
Your credit score may already be low due to your inability to manage your debt by yourself. However, don’t worry a debt consolidation and credit counseling program are often seen as positive step toward getting rid of your debt and improving your credit score in addition to your credit rating.
“It’s not about the money. It’s all about the money.”Margaret Johnson, founder and CEO