Is Credit Counseling The Answer To Your Debt Problems?

Like many Americans, you may currently find yourself in debt

. Credit cards, student loans, car loans, mortgages and more may have you stressed out each month. Many people even find themselves doing the "bill dance." That is, they are strapped for cash and each month they skip one or even two bills in order to pay others. This "bill dance" leads to even more stress and even more debt. You may be convinced that you'll never pull yourself out of this endless, vicious cycle. But there is help.

Many consumers have turned to nonprofit credit counseling to help get their debt under control, learn how to budget and keep their finances on track. Credit counseling can help solve two problems managing your current debt and helping you understand how to avoid more debt in the future. In fact, many nonprofit organizations offer free financial counseling to those in debt, which means that you don't have to shell out any more money to help get your situation under control

What is Credit Counseling?

Credit counseling is different depending upon the individual agency, but most organizations will look at your credit report, look at your monthly bills and ask you what your monthly income is. A counselor will help you to understand the difference you have between the money coming in versus going out. They'll work with you to budget your money and they'll also work with your creditors. They can negotiate lower payments, or even settlements as part of a debt management plan. If necessary, they can roll all of your debt into one manageable monthly payment. You pay the agency and they distribute the money to the creditors. Sometimes, after a session with a credit counselor you may discover that you don't need a plan like that. Each situation is unique and a good agency will treat you like an individual.

Effectiveness of Credit Counseling

You might be asking yourself, "does credit counseling work?" Once you enter a debt management plan and begin paying off your debt, you'll probably feel some relief from beginning to solve your problems. While credit counseling won't stop you from getting into future debt (only you can do that) it, it can help solve your current debt problems.

Credit Counseling and Bankruptcy

Notice that the government's answer to, "Does credit counseling work?" is "yes." If you want to file for bankruptcy, you must attend a credit counseling session first. This session works just like any other credit counseling session. The counselor will look at your situation and advise you as to your best options. If bankruptcy is the best choice, he will advise you to file. Otherwise, he may encourage you to enroll in a debt management plan to help take care of your debt.

by: William Hauselberg

POST COMMENT

Bad Credit Installment Loans- Meet Urgent Cash Requirements Now! Essential Facts That One Should Know About His Credit Report Credit Report Disputes - Dispute Bad Credit 12 Month Loans For Bad Creditors To Avail Easy Cash Enjoy Xmas, Easy Cash At Mouse Click, Creditworthiness No Matter 12 Month Loans No Credit Check: A Boon For Bad Creditors 12 Month Loans For Bad Credit Helping Hand For People With Adverse Credit How To Score Low Interest Secured Credit Cards Short Term Loan No Credit Check- Surmount Any Of Financial Worries Now! Steps Of School Accreditation In India Bad Credit Personal Loans: Get Fast Approval Guaranteed Bad Credit Loans Credit Loans: Get Deal With Awesome Facilities Weekend Payday Loans For Bad Credit: Apply For Amount With No Tension