Archive for June 4th, 2007
This may come as a surprise to you but there are currently over 400 credit counseling agencies operating in the US alone. With so many credit counseling service providers out there, how do you go about choosing the right one that will give you the best solution to your debt issues, get the best savings possible on debt consolidation and debt settlement, and not charge you through the nose in order to get these services. How do you know which CCA to trust with your time and money? This article will detail the top 5 things to look for in choosing a credit counseling agency.
1. The first thing to look for is whether the counselors are certified, the agency accredited and/or a member of a reliability program such as the Bureau of Better Business. To be certified or be a member of a reliability program, the Credit Counseling Agency would have had to pass a range of tests to ensure that they are able to deliver the required services. In the US, there are various associations of foundations that promote quality, assurance and financial responsibilities of their member who must pass stringent accreditation standards. An example of this National Foundation of Credit Counselors who are all credited by the Council on Acreditation. Another example is CareOne Credit who’s members must all live up to the customer service standards set out by the organisation.
2. The second thing to look for is whether or not the Credit Counseling Agency will put together a plan that is tailored to your requirements. There are a lot of Credit Counseling Agency services being advertised on the internet that claim to charge you a flat rate amount that is usually pretty low. What you don’t know is that these services offer you a standard “cookie cutter” approach to debt reduction. The program is not tailored to fit your requirements and so you are not getting the best possible debt reduction program for your situation. These services can and probably will end up costing you more in the long run. A good Credit Counseling Agency will have a counselor talk to you over the phone or meet with you and work out a plan that suits your current situation.
3. Will the Credit Counseling Agency charge you a flat rate or a percentage of the amount you save in a debt settlement, debt consolidation or debt reduction plan? Many so called Credit Counseling Agency services are currently offering low flat rate fees claiming to save you thousands of dollars compared to other Credit Counseling Agency services. The issue here is that these Credit Counseling Agency’s are not at all motivated to get you the best possible savings on your debt programs - they know they are going to get paid either way. A Credit Counseling Agency that charges a percentage of the amount you save is completely motivated to get you the best possible deal.
4. Will the Credit Counseling Agency give you a written guarantee of the amount that they can save you? There are so many services currently being advertised that claim to save you up to x% whether its 70% or 65%, or 80%, they all promise to deliver these great savings to you. But when you actually engage their service and ask for a contract, they will not put on paper the amount that they guarantee they will save you instead they will say that they will do the best deal possible for you. This should immediately raise alarm bells in your mind. It shows that they are claiming to do things that they cannot actually deliver. Make sure you find a Credit Counseling Agency that will guarantee results in writing.
5. And finally, are the Credit Counseling Agency’s services confidential? Your current financial situation and the steps you take to solve them should not be published or shared with anyone that you don’t want to know about it. A good Credit Counseling Agency will keep your enquiry and all the information you share with them completely confidential.
There are probably a number of other things to look out for when choosing the best Credit Counseling Agency for your requirements, but these 5 points are very important and if you find a Credit Counseling Agency that can satisfy all of these points then you can be confident that they are trustworthy and you are getting a very good deal.
June 4th, 2007
Are you tired of sleepless nights due to incessant worry over money concerns? Do you review your monthly statements and nearly get sick when you se the staggering amount of accruing interest? If so, its time to take a serious and realistic approach to eliminate your debt and free yourself from these feelings of apprehension that have the potential to lead to serious physical and/or medical problems.
If youre seriously in over your head financially, and want to avoid a bankruptcy filing, perhaps you should consider debt settlement. Debt settlement is a process whereby you can negotiate with your creditors so that you may reach a mutually agreeable reduced payoff amount. Admittedly, debt settlement isnt as easy as picking up the phone and explaining your predicament to your creditors and subsequently receiving a generous offer of settlement from them. If it were that easy, most everybody would be making those phone calls. Debt settlement, however, is quite an attractive alternative to bankruptcy, consumer credit counseling and even debt consolidation loans.
You see, your creditors will not write off even a fraction of what you owe them unless your accounts are delinquent. Obviously, if your accounts are classified as delinquent, you can expect to be put on an automatic dialer within your creditors collection departments, which will result in numerous (and harassing) phone calls in an attempt to intimidate you. While debt settlement is rarely an easy process, it has successfully helped thousands of people eliminate their debt and finally breathe a sigh of relief.
If youre considering debt settlement and youre not sure youre up to dealing with some harassment and intimidation, or even the negotiating process, you may want to consider hiring a professional debt negotiation firm to represent you.
Prior to doing so, however, please check the Better Business Bureau records of each company youre considering. Additionally, dont sign anything from a firm that requires a large deposit, set-up fees, monthly maintenance fees or takes their fees prior to providing a service.
With the right amount of determination and perseverance, you can successfully eliminate your debt and have a much healthier and happier future. I wish you the best.
June 4th, 2007
So where can you go to get debt help? You have many choices including credit repair companies
and credit counseling services. The choice would depend on the severity of your debt, but you
cannot go wrong if you just start somewhere. If your first choice cannot help you, they would
point you towards someone who could help you with your debt problem.
You only need to watch for individuals and companies who would gladly take your money and
not provide any service in return. These scams are prevalent on the Internet and you should check
out the company or individual before you put any money down. Of course, you can seek help
from one of many nonprofit firms set up to help people in debt. Look in your Yellow Pages for
their telephone number and address.
You can also scan self-help guides that apply to debt management. These you can find either
online, or in your local bookstore. Your local library might also have these handy guides that will
help you manage your debts on your own. Self-help can also include contacting your creditors
directly. This is a good way to win points with your creditors. Creditors like to hear from
delinquent or near-delinquent debtors before the debt becomes unmanageable. You should not
use this hoping to salvage your reputation because it would not work. You need to talk with your
creditors early.
Working with a credit counseling agency is a good place to get help in the early stages of your
debt problems. They can help you come up with a plan to present to your creditors. Credit
counseling is not for everyone because while they can help you, you must have some way out of
your debt. Their advice can help most people for the present and to avoid further debt. However,
some people are beyond credit counseling. If you are one of them, you will find out quickly and
given a number to call a trustee in bankruptcy. But here we are assuming you have a ray of hope
and can contribute some funds to your financial rescue plan.
Your credit counselor will get you involved in a debt management program that would benefit
both you and your creditors. Through this program you will list your sources of income and bills
you are paying each month to all of your creditors. The goal is either to reduce your monthly
payments, or the number of times you write checks to several creditors. Writing one check each
month is the ideal arrangement but your situation may be different, and you can do something
else. You can benefit from this program by getting current credit advice, and avoiding the
unpleasant task of declaring bankruptcy.
Debt help is common and not something you should fear. We make mistakes and should correct
them once we recognize them. Correcting them means taking responsibility for our situation. If
you have a problem with your debt load, you should put out a call for help before it gets worse.
June 4th, 2007
