If you are bogged down in credit card debt and are trying to figure out what you should do to relieve the stress and get back on the right track financiallys. You might want to look at a counseling program that specializes in debt resolution.
Assess Financial Picture
A debt couseling firm will typically start by looking at your entire financial picture and then based on what they have found out they will devise a plan that they will communicate with you and your creditors. The two main functions of a credit counselor are working towards lower payments and a shorter time frame for becoming debt free.
The most important job of your debt counselor is usually to help reduce the monthly payments and/or negotiate for a lower prinicipal amount due, if applicable.
All of your comminication with a certified debt counselor is confidential. They are non-biased and are they for you.
DMP – Debt Management Program vs. Credit Counseling
DMP or Debt Mangagement Program and Credit Counseling are essentially the same thing. They are programs that are designed to help people get out of debt.
Certified Consumer Credit Counselors
Certified Consumer Credit Counselors are experts who tailor confidential programs to meet your specific needs. They will help you understand your situation so you can get on the road to financial freedom.
Typically credit debt counseling can be done either in-person at the counseling facility or by phone or via the internet.
Contacting a counseling center
Most likely when you reach out to a credit debt counseling center you will be advised of any information you need for your counseling session. Once you’ve been prepped they will set up a time to go over all of your finances and begin to put together a plan specifically for you.
Credit Debt Counseling Non-Profit?
Most credit debt counseling services are non profit organizations.
Funding for Credit Debt Counseling
The majority of funds to pay for your services come from the credit companies. Sounds weird huh but, think about it. Who else is more concerned with coming up with a sensible plan to pay your creditors then… your creditors. Credit Debt Counseling centers are also funded with grants, other private sources and clients fees.
How much are fees for Credit Debt Counseling?
Fees vary so check with several providers of this service and make sure that you can afford the program and that you feel they are really trying to help you. If you can’t afford any fees many times they will waive them for you. Again, check with several providers to find the best service for you and your situation.
Stopping the nagging creditor calls and legal action
In most cases once a sensible plan has been put in to place your creditors are less worried that they will never see another dime and therefore will typically ease up on the calls and more than likely they will halt and legal actions that were in progress before you started your credit debt counseling program.
Does this work for all creditors
Most creditors support some form of credit debt counseling program because it is typically in their best interest if they don’t want you to go bankrupt. Then they will probably get nothing.
Why do they prefer to work with you instead of me
It’s not to say that creditors will not work with you. They usually will. One of the main reasons credit debt counseling programs are so effective is because the certified counselors are trained and have a great track record for getting the credit paid back. Knowing this creditors are more eager to work with credit debt counselors to reduce your monthly payments and sometimes even forgive balances.