subject: Free Consumer Credit Counseling-your Answer To Debt Relief [print this page] If you have debt, you may be looking for free consumer credit counseling. While nonprofit credit counseling is not 100%, it is about as close as you can get. Most debt management companies charge a small setup fee of around $50 and there is also a monthly fee of $30-$50. Now that may seem like a lot, but in the grand scheme of things you will probably be saving a much larger amount.
If you have $20,000 in debt that you are paying 20% a year on ($4,000) and your interest rate is reduced to 10%, you will be paying $2,000 a year plus the $50 per month or another $600 per year. Enrolling in a debt counseling program will have saved you $1,400 and that is actually figured conservatively. Some lenders actually lower their interest rates below 10% and I have seen some eliminate them completely.
Most debt elimination programs will last no longer than 5 years making a 2% payment each month. Most credit card payments range from 2% to 4% of the balance and will take about 14 years to repay if you pay only the minimum amount. Working with a debt consolidation company will allow you to consolidate your consumer debt into a single account that will require only one payment each month.
Having debt can be the cause of stress as well as many other problems. Before you can move forward with your life financially it is important that you begin to eliminate your debt. Debt is the one thing that can hold you back in many areas of your life and help is closer than most people realize. Credit counseling is not a loan. It does not require you to own a home or have good credit. If you do have good credit, you do not have to worry that it will be ruined as a result of being enrolled in a debt management plan. It can be your way into the future that you have always dreamed of and you can get started today.
