http://www.debts.org/index.php en info@debts.org Copyright 2008 2008-12-01T15:28:00+00:00 http://www.debts.org/11/index/consumer_credit_counseling/ http://www.debts.org/11/index/consumer_credit_counseling/#When:08:24:00Z If the thought of bankruptcy is too bleak, then professional counseling may be the better option. Credit counseling is an alternative to bankruptcy that is fast becoming the preferred debt solution among consumers.Consumer credit counseling can provide you with financial education and debt counseling tailored to suit your situation. A credit counselor can also negotiate a repayment plan with creditors on your behalf. More... A counselor will assess your debt before structuring a repayment plan based on your income. Many credit counselors negotiate lower interest rates with creditors as part of a debt management plan. A good counselor can also arrange to have some fees and penalties deducted from your debt.How Credit Counseling WorksWhen a credit counselor assesses your financial situation, they will review the following: number of accounts, bank balance, minimum payment amounts, balance outstanding on debt. Based on the above criteria as well as your monthly income and bills, the counselor will put together the debt management plan (DMP). If you were happy with the debt management plan proposed by the counselor they would present it to the creditors for consideration.Many creditors are happy to see you have consulted a counseling agency as it shows you are serious about repaying the debt. Had you filed for bankruptcy the likelihood of the creditor recouping any of the debt would be slim. A debt management plan, however, guarantees them a proportion of the money owed. How much you repay will largely depend on three components: your credit counselor, your circumstances and the creditors stance on your debt.Once creditors agree to the plan, repayments will be made via the credit counseling agency. The credit counselor will distribute repayments to each of your creditors in accordance with the debt management plan. Normally, as part of a DMP, you will not incur any further charges on condition you make all repayments in full and on time.Credit Counseling CostsWhile many credit counseling agencies profess to be non-profit it does not always make the service free. Credit counseling agencies usually charge a fee to cover their expenses. It pays to avoid an agency that charges a flat rate because you may be paying for services you haven’t required. Also, never consider using an agency that charges a fee just for supplying information.Advantages of using a Credit Counseling AgencyA credit counseling service is not the answer to every debt problem, in fact they have no right to any legal privileges. This means a debt counselor is unable to do anything you cannot do for yourself. So, you may wonder, ‘why use one?’The majority of consumers who use the services of a credit counseling agency do so for convenience, reassurance and to take advantage of their experience in negotiating with creditors.Most consumer credit counselors are adept at negotiating a payment plan with your creditors. Which means you are more likely to repay a lower proportion of the debt. Should you organize your own repayment plan you may have to make multiple repayments every month. Using a credit counselor means you only have to make one repayment per month and they disburse it among your creditors on your behalf.Finally, many people like to use the services a credit counselor offers, such as financial education and debt counseling. It can go a long way to ensuring you never find yourself in debt again.Where can I find a Credit Counseling Agency?If you would like to get help with debt by using a consumer credit counseling service, it’s important to choose a reputable credit counselor. You can find a credit counseling service in your locality by clicking here.Make yourself at home in our Forum and find out what everyone else thinks about consumer credit counseling in America. There is also our up-to-date News section for all the latest on personal finance. If you need help finding a provider or would like to review a company, please don’t go without checking out our A-Z directory. Consumer Credit Counseling 2008-07-08T08:24:00+00:00