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Debt Management
When to use a credit counseling service
If you're overwhelmed by bills and late payments, it's time to get hold of your financial situation. In most cases, you should try to work out a budget and debt management plan on your own to solve your debt issues. But sometimes you're just not disciplined enough. If you feel that you’re not disciplined enough to create a workable budget and
stick to it and can't keep up with the bills, then you need the help from a credit counseling service.
But before you see them, do some homework. Many credit counseling organizations are
nonprofit and work with you to solve your financial problems. But be
aware that, just because an organization says it’s “nonprofit,” there’s
no guarantee that its services are free, affordable, or even legitimate.
In fact, some credit counseling organizations charge high fees, which
may be hidden, or urge consumers to make “voluntary” contributions that
can cause more debt. Imagine adding more debt just by seeking help.
You can get credit counseling from most credit counselors through local
offices, the Internet, or on the telephone. The best way is to go in person. A person-to-person interaction cannot be replaced by internet counseling. Talk to you friends and families for referrals. If you don't feel comfortable talking to them, check local universities,
military bases, credit unions, housing authorities, and branches of the
U.S. Cooperative Extension Service which operate nonprofit credit counseling
programs.
A good credit counselor can advise you
on managing your money and debts, help you develop a budget, and offer
free educational materials and workshops. Make sure the counselors are certified
and trained in the areas of consumer credit, money and debt management,
and budgeting.
In Most cases, you will start with one session which lasts around one hour to discuss your whole financial situation. You will likely to do followup sessions after the initial interview.
Source: United States Federal Trade Commission, www.ftc.gov
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Date Added: 2010-09-13 Views : 235
