Credit Counseling
If you’re buried in debt and you have absolutely no idea how to dig yourself out of it, you’re not alone. You’re suffering along with most of America, and credit counseling can help. You can take a whack out of that monstrous debt and do it all without destroying your credit through bankruptcy or borrowing more money to do it. Let’s look at how credit counseling can help.
A Free Service To Help You Get Out Of Debt
There are very few things left in this world that are absolutely free. Credit counseling is one of them. Just as the name suggests, credit counseling is a way to get free advice from an organization with experience and knowledge. It’s like getting a free education in managing your finances, and it has helped hundreds of thousands of Americans already.
Credit Counseling Keeps You Out Of Bankruptcy
The goal of credit counseling is to help you get your debts paid off in five years and to keep you out of bankruptcy. Bankruptcy is the last resort for folks who can’t handle their debts. While it does get the debt off your back (in most cases), it is a traumatic experience and it destroys your credit for years to come. It has lots of negative consequences, like making it harder for you to buy a house. Credit counselors make it their goal to steer you away from this life-wrecking last resort.
Your Debt Management Plan
What they’ll do is create a debt management plan. This is a financial plan that is designed to get you out of debt within five years. You don’t have to take out another loan or pay additional charges; the only thing you have to do is stick to the five year plan and get it done. They’ll look at your finances and make this plan with you, so that you can both choose methods that are realistic.
They Make The Plan And You Do The Work
Credit counseling is free and effective in getting you started on paying off your debts. The only downside is that you do most of the work. The easy part is making the plan; it’s tougher to stick to it. But, if you really want to see those debts disappear in five years, it can realistically be done with the help of credit counseling.
How To Find A Legitimate Credit Counseling Organization
Look for organizations that are affiliated with the National Foundation for Credit Counseling. The service should be absolutely free; if they say there are charges or fees you must pay, skip them and look for another. One more pitfall to avoid is the confusion caused by debt terminology. Some companies use the term “credit counseling” to refer to debt consolidation, debt settlement and a whole host of other options. Credit counseling is free advice and the creation of a debt management plan. It has nothing to do with consolidation or settlement.
Credit Counseling Helps
The great advantage of credit counseling is that it educates and organizes you. They’ll make your management plan for you, and then you’ll have to stick to it. It won’t be long until you start to see the end of the tunnel.