Do You Need Consumer Credit Counseling Services | How ...

If you?re struggling with debt like millions of other people out there, consumer credit counseling services may be an option for you to consider. Consumer credit counseling services are organizations that are designed to help people with credit management and getting out of debt.

What is Credit Counseling?

Consumer credit counseling is a service that works with those who are in debt and wish to get out of it over an extended period of time. This type of service is typically not the fastest method available for getting out of debt, but it does save you money and it will do the least damage to your credit.

The debt management plan is the strategy that most consumer credit counseling services use. With a debt management plan, you enter into a payment plan with the consumer credit counseling service. The credit counseling company negotiates with your creditors to get lower interest rates on your behalf. Then you agree to make a monthly payment to the credit counseling service. The credit counseling service and takes your monthly payment and divide the money up among your creditors and makes your monthly payments for you. The counseling service also takes a monthly fee for this.

In most cases, this process takes somewhere between four and five years to complete, depending on the amount of debt that you have. It has the potential to save you money because you are significantly cutting your interest rates. It also can simplify your life because you do not have to make multiple payments to creditors. You simply make a single payment to your credit counseling service.

Other Benefits

In addition to help setting up a debt management plan, a credit counseling service can also help you with the basics of credit management. For example, the credit counseling service may sit down with you and look at your finances. Then a realistic credit management plan can be set up so that you will be able to stick to a budget. Once you have a credit management plan in place, you can then stick to the debt management plan and meet your monthly obligations.

One of the major benefits of this type of service is that it will not negatively affect your credit score. With other debt solutions, such as debt settlement, your credit score can be damaged. When you do not repay the debt that you owe, your creditors will report your account as settled or as delinquent. This will lower your credit score and make it difficult for you to get credit again at any point in the future.

When using credit counseling, you typically will not be able to take out any additional credit while you are in the program. However, once you emerge from program you should be able to qualify for credit because you will have a positive payment history for several years and you will not have to worry about any other damage to your credit score overall. This makes credit counseling an option for most debtors to seriously consider. ??????????

George Boone, Credit Guard enthusiant, tells his story of getting out of debt through blogging.

Source: http://www.howimportantisyourfinance.com/2012/08/08/do-you-need-consumer-credit-counseling-services/?utm_source=rss&utm_medium=rss&utm_campaign=do-you-need-consumer-credit-counseling-services

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