|
Enrolling in a debt consolidation credit counseling program could greatly assist in reducing your overall bad credit debts. Like many consumers in America, you probably have 3-5 credit cards at the very least. Keeping up with individual due dates and coinciding them with your other monthly finances can be very difficult and many consumers incur late fees from creditors simply because they miss-managed their budget and due dates. This is one of many concerns consolidating your credit debt can help alleviate. Consolidating your credit card debt into one simple monthly payment can help avoid the inconvenience of writing out several checks a month or online payments. In addition to, if you're behind and getting hit with late, past due, and over-limit fees, the fees are eliminated once an agreement has been made on your behalf by the credit counseling agency. With the additional amenity of reduced lower interest rates, you can consolidate your debts with one monthly payment and watch your balances finally go down as the majority of your payment will go to the balance versus the banks finance charges and fees.
You make your one payment to the consolidation company every 30 days and they in turn send it out to your creditors under a consolidation agreement for the reduction of interest and other credit counseling amenities. Your creditors will still send you your monthly statement each month which will show the monthly payments being made, the stopping of any fees, and the reduced interest rate for enrolling the account into a debt consolidation plan. Most credit counseling agencies have an in house customer service department that works directly with your creditors and reviews statements for their clients to ensure they are receiving the maximum allowable benefits for consolidating their debts. These certified credit counselors also call on your behalf and speak to your creditors about payments, rates, and any questions they have regarding the outstanding debts due that are being managed by the agency. This then takes the burden of those harassing phone calls off your line and will probably save you some cell minutes on your plan. See? Credit counseling has savings written all over it!
How do you choose an agency you can trust?
Do some homework. Do they have any testimonials? Are they recognized by the Better Business Bureau? What's their rating? Are they Nonprofit? Do they have a 501c3 to verify their non-profit status with the IRS? Is there a free consultation before committing to a plan? Most nonprofits offer a free budget counseling session first and foremost to review and evaluate your monthly expenses and see what suggestions can be made as well to further assist consumers in savings. Is this service provided? Do they consolidate debts under $10k? Have you heard this one yet?! These are profit companies watching their bottom line. While many consumers can benefit from a plan under $10k in debt, most companies frown upon enrolling such because there isn't much profit to gain off commissions. Do they work on commissions? Non-profits do not and are mostly hourly employees. Are they going to reduce your debts or reduce your interest? You want to reduce interest, not the debt amount, less you're willing to tarnish your credit for seven years. Ask a certified credit counselor for more detailed information on the difference between settlements and consolidation.
There are many companies out there that will help you with the credit debt consolidation process but please realize this is not free. Non-Profit or not, each agency has a different way of charging you but you will definitely have to pay a fee to get this process completed. Look out for outrageous fees, like an enrolment fee equal to your regular monthly payment. True no-profits charge a nominal enrollment fee or waive the fee after a budget analysis. Monthly service fees should never exceed $50 a month and/or more than $5 per account enrolled. These companies most likely do not have your best interest in hand.
Do not let credit card debt cripple you. Research and contact different debt consolidation companies and see which one works out best for you. Each consumer has different financial needs and goals based on each individuals lifestyles and financial abilities. Make sure you find a company that can work with you in these instances and provide a payment plan that fits your budget and ensures a successful credit consolidation program to be debt free.
For more free financial advice or information on budget counseling, credit debt consolidation services feel free to contact one of our certified non-profit credit debt counselors for a free budget analysis and consolidation quote. Speak to a LIVE Certified Credit Counselor on our website freedomdm.org or complete our short application for a credit counselor to contact you at a time more convenient. You can also reach us toll free at 800.905.1563. Good luck to you and yours in all your future financial ventures. |
tweet this!