For those who are deeply in debt, a credit counseling service might be exactly what you need to escape your problem. Credit counselors will work with your creditors to come up with a plan that will get them off your back and allow you to live a stress free life again. Here is how the process works.
Meet With A Credit Counselor To Determine Eligibility
The first thing you need to do is to meet with a credit counselor to see if you can actually benefit from credit counseling services. This person will go through all of your debts and make sure that you will save enough money to benefit after you pay fees and other charges that might arise. This is also a good time to ask questions about the company and their track record. It is always a good idea to check out a company with the BBB before making a decision.
Establish A Plan Of Action
After you have determined that credit counseling is for you, it is time to make a plan that you will follow to get out of debt. What usually happens is that your interest rate and balance is slashed on your debts and you make a single payment a month. A true debt consolidation may occur or you might send in one payment that is spread out among the different creditors by the counseling service.
Follow Through
Most debt plans are going to take about 60 months to complete on average. This means you have to stick to the plan and follow through with it. Do not take on any more debt as this will simply make the situation worse for you and you will not see the benefit. Your creditors will not be happy if you drop out of the program and you might have to face legal actions and other measures again.
Going through credit counseling is a great way to get out of debt and be done with it for good. Make sure that you are able to follow through with the plan that you have established for yourself. Credit counseling is no good if you cannot stick to the plan, or if it is going to be too expensive for you to actually complete. Remember that you should never go with a company that does not have your best interests in mind from the time you walk in.
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