Do you have a stack of unopened bills? Are you afraid to answer the phone because of the collection calls? If this sounds like your life, you do have options. If you are behind with your credit card payments, credit counseling is an option you should consider.
Credit counseling is an option that works best if you are no more than 3 months delinquent. If you are more than 3 months delinquent, there are other debt solutions that would be better for you. Once you have enrolled in a debt management program, they can help you reage your past due accounts after you have made a few on-time payments.
Your credit counselor will get you set up on a debt repayment plan and they will help you prepare a budget that you can live with. You will find relief once you have enrolled in the debt counseling program and have a repayment plan in place.
Credit counseling will offer you the following benefits:
• One monthly payment made to the credit counseling agency
• Reduced and possibly eliminated interest rates
• No more fees
• No more collection calls
Many credit counseling companies will advertise that they will reduce your monthly payments. This is true if you have been making late payments. If you have been making on-time payments, they will stay about the same.
Credit counseling is not without its down side. Your credit card accounts will be closed and you will be asked not to open any new ones. Some lenders look unfavorably on credit counseling on your credit report. Other lenders do not look on credit counseling as negative. As credit counseling becomes more common, lenders are becoming more accepting of these circumstances.
Secured debts and student loans are not able to be placed with a credit counseling agency. Credit counseling allows credit cards and medical bills for the most part.
Credit counseling is a debt relief option that should have you out of debt in 3-5 years in most cases. One of the biggest benefits of credit counseling is the one monthly payment. Many people have several credit cards and it is hard to keep up with all the due dates.
Being enrolled in a debt repayment plan will give you peace of mind, but it is important that you follow your budget and make your payments on time. You will be amazed what this debt program can do for you, if you stick to it.
Published by Marjorie Salada on October 22, 2007 08:43 PM
