If your bills have taken over your life, it's time you looked into consumer credit counseling services - what can be expected? Understanding what to expect when you enroll in a credit counseling program may help put to rest any misconceptions that have kept you from moving forward sooner.
First, individuals who seek help with their debt are not losers or incompetent.
In fact, many people turn to counseling services for their debt because of a drastic decrease in their income or an extended illnesses.
Unanticipated events such as death or divorce can turn your life upside down and your credit as well.
When you contact a debt credit counseling service they will first go over your financial situation, review your current debt, your income, and your assets.
Once they have done this they will give you an estimate of how much they can save you once enroll in their program.
They will review their fees, and how long it will take you to get out of debt using their services.
Many services offer a no-obligation, no-cost initial consultation.
Once you have enrolled they will start contacting your creditors.
Many times they have already developed relationships with companies such as major credit card companies and/or retailers and they can work out amicable arrangements for you.
Other companies may take some negotiating.
When they have a repayment plan ready for you, they will typically request that you make weekly or bi-weekly payments to the company, which they will forward to the creditors.
In some cases their fee is included to make it easier for you to manage and keep track of.
As you send in your timely payments, your balances decrease and your regular payments are reported to the credit bureau.
Many of these services will counsel you on money management, saving a portion of your income, and some even offer additional classes.
The key to success with debt management services is to remember that it takes time, but once you are finished paying off your creditors you will be glad you did.