In today’s economic world the use of credit is more than common and plays an integral role in your overall financial stability. Having good credit is vital when taking a mortgage, financing a new car, getting loans, and helping you make your everyday purchases. Consumer credit counseling can help you make the right decisions when building, using, and maintaining good credit. You can also repair bad credit under the guidance of consumer credit counseling. If you find yourself buried by piling credit card bills, you are not alone. Many people are consumed by late payments, phone calls from creditors, and accrued interest, falling deeper and deeper into debt. A consumer credit counselor will help you explore the available options, and, through one of the different types of consumer credit counseling programs, get you the assistance you need to find your way out of debt with as much ease as possible. Using the services of a consumer credit counseling agency will give you the experience you need to point yourself in the right direction to build a solid financial future.
What is Consumer Credit Counseling?
When searching for solutions to issues regarding your credit, one option is consumer credit counseling. It will give you the information you need to understand how everything works. They will assess your situation, and take you step by step through the processes involved to help you reach your goals.
- Starting a line of credit
- Building your credit
- Finding solutions for your current financial problems
- Managing your money
- Maintaining good credit
The services provided by a credit counselor will give you a insight into the many facets of your credit.
Who Needs Consumer Credit Counseling?
The services that a consumer credit counselor can offer can be utilized by anyone, in any situation. Whether you are first applying for credit, mending your poor credit, trying to get out of debt, or have the desire to maintain your financial freedom, a credit counselor can offer you solutions too many of the concerns you may have.
- How do I establish credit?
- What does it take to maintain good credit?
- What happens if I file bankruptcy?
- What is a debt management plan?
- Will counseling affect my credit score?
These are just a few of the questions one may have when making decisions regarding their credit. These and others can all be answered by a consumer credit counselor.
The Benefits of Consumer Credit Counseling
Many people decide to handle credit, and how they pay their debts back, on their own. Most times what happens is too much spending and not enough paying back. Allowing interest to accrue, and overtime, fall into debt. The question that comes to mind is, “How did I get to this point?” A huge benefit of seeking counseling before applying for credit is that with the help of a trained professional you can move forward smoothly without running into any problems. They can help keep you on track with a plan customized to your situation. However, if you find yourself in over your head, their help can be of great value.
- Reduced payments
- Lower interest rates
- Budget planning
- Eliminating fees
- Debt settlement for less than you owe
A certified credit counselor can give you guidance and education on these topics, as well as facilitating negotiations between you, the consumer, and the creditors.
Types of Consumer Credit Counseling
Depending on your situation, a credit counselor can help you assess your options. For example, if you owe money to more than one creditor, you may qualify for a debt-management program, in which you make a single monthly payment that the credit counseling agency then disperses among your creditors to pay off your balances in full at reduced interest rates over time. Trained credit counselors working for a debt relief organization can examine your financial situation and provide sound advice and solutions based on your specific needs and goals. They offer several programs with guidelines aimed at getting you where you want to be.
Sometimes all it takes to resolve your debt is a tweak in your money management. A personalized budget plan can identify overspending and put you back on track.
A debt management plan (DMP) can consolidate unsecured debt into one easy monthly payment so that you can get out of debt in 4 to 5 years. With this program you can lower monthly payments, reduce or eliminate interest, and stop late fees. Most importantly, past due accounts will change to be shown as current.
Home Equity Loan
A home equity loan may be suggested for those home owners with equity to assist in paying a large amount of unsecured debt.
Credit counselors will tell you, bankruptcy should be the last resort. Only after all other debt solutions have been explored should bankruptcy be considered. This is a decision that will stay on your credit history for up to ten years. A trained counselor will analyze your personal circumstances and credit options, and help you decide if filing for bankruptcy is the right choice for you.
Consumer credit counseling services are easy to acquire and can set you on the path toward achieving your financial goals. With their help and guidelines, you’ll discover that financial stability is truly possible.