subject: What To Expect When Going Through Debt Counselling Assistance Services [print this page] We live in a time and age where credit is king. Those who have high credit scores are given everything their hearts desire, while those who do not are forced to pay extremely high interest rates on basic human necessities. Debt counselling is designed to help individuals who are in a severe amount of debt dig themselves out of it.
The way that this program works is it will evaluate the finances of the consumer who owes money to outside creditors. The evaluation is necessary in order to determine an amount of money that can easily be paid back to creditors without endangering the welfare of the debtor. The consumer will work closely with a counselor to determine how much money they can afford to pay back to the creditors that they owe.
However, while analyzing your financial accounts, the counselor will take your immediate expenses into consideration. They will make sure that you have enough money to take care of your utility statements, rental or mortgage payments, as well as food, and gas expenses. Your living expenses will be given priority over the past due amounts that are owed to your creditors.
The counselor that you hire will be able to help you understand the way that the repayment process to your creditors is going to work. Their main objective is to help you learn how to properly budget your money, so you will have enough money to pay your immediate bills as well as pay your creditors back. The counselors have your interests in mind.
Going to an outside agency to help you manage your finances and pay off your debts can be difficult for some people to comprehend. Before handing over your financial burdens to a counselor, it is imperative that you have a strong understanding of how your accounts are going to be handled. The first step in getting help is to apply for it.
Once you have applied for financial assistance, a counselor will be given your case to analyze. They will require some paperwork that clarifies how much money you have coming into your home versus how much money you have leaving your home. This allows the counselor to ensure that they can set you up on a plan that is not going to take food or shelter away from you or your family.
Once your creditors have been informed of your decision to hire an outside agency, they cannot take any legal actions against you. Sixty working days after the agency has been hired, they will begin negotiating with your creditors about different repayment terms that you can afford. The recommendations that the counselors make will be documented in court.
All of the recommendations that the counselors give your creditors will be filed into a court order. The court will then take the order and mandate that you pay back the amounts that were negotiated in the time frame that the counselor stated you could. From this point on, it is up to you to ensure that payments are being made.
Debt counselling is a great financial tool that can help you eliminate your debts. Knowing what to expect is vital when it comes to hiring an outside agency to assist you.
