You should opt for consumer credit counseling the moment you realize that you are unable to pay your bills on time, or are unable to pay the monthly minimums on your credit cards. There is no point in reaching a stage where debt collectors start landing at your doorstep every morning to extract their dues.
It is important to make a wise decision when it comes to your selection of a debt counselor. If you make a good choice, you will be given helpful tips on controlling your debt and spending habits.
If a company wants to charge you any more than a $10 start-up fee, beware! There are many fraudulent companies that claim they can help you to eliminate all of your debts for practically no money. It is important to avoid such companies at all cost.
You should always check to make sure that the company you choose is affiliated with either the Association of Independent Consumer Credit Counseling Agency or the National Foundation for Credit Counseling.
It is also important to make sure that the company you are making payments to is paying your bills in a timely fashion. Some companies have been know to accrue missed or late payments, which will have a negative impact on your credit rating. If this is the case, it makes more sense to handle your debt problems yourself.
Credit counseling has always been viewed as a double-edged sword. On the one hand, it helps you manage your debts better, but on the other hand it sabotages your reputation with creditors. However, it is safe to say that the positive aspect of the service far outweighs the negative repercussions. While a few creditors may be wary of lending you money again, most of them will still be willing after you have cleared your previous debts with the help of credit counseling.
It is important for you to do your research properly and opt for a service that does not further deteriorate your credit rating. For instance a company that tags you as a credit delinquent should be avoided, while one that merely informs your creditors about your decision to take up credit counseling is a better option.
As a general rule, credit counseling is very beneficial. It does have its limitations, though. If you a extremely deep in debt and bankruptcy seems imminent, they may be unable to help to you. Also, unless you learn to exercise some financial discipline and reduce your spending, credit counselors will be unable to help you.
It is important to make a wise decision when it comes to your selection of a debt counselor. If you make a good choice, you will be given helpful tips on controlling your debt and spending habits.
If a company wants to charge you any more than a $10 start-up fee, beware! There are many fraudulent companies that claim they can help you to eliminate all of your debts for practically no money. It is important to avoid such companies at all cost.
You should always check to make sure that the company you choose is affiliated with either the Association of Independent Consumer Credit Counseling Agency or the National Foundation for Credit Counseling.
It is also important to make sure that the company you are making payments to is paying your bills in a timely fashion. Some companies have been know to accrue missed or late payments, which will have a negative impact on your credit rating. If this is the case, it makes more sense to handle your debt problems yourself.
Credit counseling has always been viewed as a double-edged sword. On the one hand, it helps you manage your debts better, but on the other hand it sabotages your reputation with creditors. However, it is safe to say that the positive aspect of the service far outweighs the negative repercussions. While a few creditors may be wary of lending you money again, most of them will still be willing after you have cleared your previous debts with the help of credit counseling.
It is important for you to do your research properly and opt for a service that does not further deteriorate your credit rating. For instance a company that tags you as a credit delinquent should be avoided, while one that merely informs your creditors about your decision to take up credit counseling is a better option.
As a general rule, credit counseling is very beneficial. It does have its limitations, though. If you a extremely deep in debt and bankruptcy seems imminent, they may be unable to help to you. Also, unless you learn to exercise some financial discipline and reduce your spending, credit counselors will be unable to help you.
About the Author:
Know how credit card reduction services can impact your credit score? There are some things you need to know before using these services. Learn what you need to know on the Debt Smackdown website
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