Contrary to common belief, consolidated credit counseling services handle much more than debt consolidation. Remember, the aim of such agencies is to help people like you regain control of their finances. For instance, they can advise you on issues such as handling credit cards and buying a home. Let’s take a close look at consolidated credit counseling solutions.
What Consolidated Credit Counseling Services May Offer
Depending on which agency you use, the range of services offered may include:
- Credit counseling. These certified counselors discuss with you your financial picture including your income, assets, expenses – and goals. After that’s completed, the agency will outline money management options available to you.
- Debt management. If you’re overcome with unsecured debt such as credit card balances or medical bills, you may be steered toward a debt management program. Such a program can get you a single monthly payment that’s lower than what you’re paying, as well as a reduced interest rate.
- Bankruptcy counseling. Here, your situation is first assessed for bankruptcy eligibility. The counselor will also apprise you of the significant legal ramifications involved in such a filing, and help you determine whether another strategy would be better.
- Housing counseling. The agency may be able to give you the information, tools, and resources that you need to help you meet your housing goals.
- Financial education. Some agencies have online resources such as pertinent articles, videos, and financial calculators. Ask about them.
What You Should Know About Credit Counseling Solutions
When trying on consolidated credit solutions, stay away from plans and loans that may, in the long run, cost you more money and make it more difficult for you to erase your debt.
You should also know that sometimes you really do need professional help. When debt is out of control, that is one of those times.
The most important thing to know is that no financial solution can help you if, in the end, you don’t have your spending under control. Make a budget and stick to it so that you never again find yourself in such a financial hole.
Behavior You Need to Change to Have a Successful Credit Consolidation
Now that you’ve established a budget and have a plan to pare spending, it’s imperative that you cease borrowing. Seriously, the only way to erase your debt is quit using the credit available to you.
Going forward, you should also keep balances low to avoid additional interest, manage your plastic responsibly, and try to pay off your debt each month, Resist opening new credit cards to raise your limit. What you don’t want to do is risk accumulating more debt, which you may have a difficult time repaying.
How to Go About Handling Consolidated Credit
The first move is to contact a credit counseling agency to get a view of your options. Determine what your costs will be and what extra debt counseling advice you may need. The next step is choosing the option that suits you best, being mindful of the terms and costs your counselor outlined. Before moving forward, review all the terms and conditions. Then, sign on the proverbial dotted line and stick with the plan.
Consolidated credit counseling solutions is a proven way to get out of debt. You need to do work too, in the form of tightening up spending and creating and sticking to a realistic budget. Talk with a professional today and get yourself back on a sunnier financial path. You’ll be so glad you did.