Do you need debt consolidation credit counseling? If you are deep in debt and headed for personal bankruptcy you might need to think credit counseling.
Debt consolidation credit counseling is a major undertaking. Avoiding bankruptcy and keeping your credit record intact are two keys to financial success. You also need to know how to distinguish a good credit counseling agency from a bad one. If You are facing credit related problems, then you can also hire credit counseling consultants to get the best solutions.
Image Source: Google
There are many good credit counseling agencies out there but some are bad apples. It is important to understand how credit counseling can affect your credit report. Also, be aware of a key change to the bankruptcy laws that involve credit counseling.
What is Debt Consolidation Credit Counseling?
Debt consolidation credit counseling agencies provide a service to people who are in over their heads in debt. Credit counseling agencies provide counselors, education, and Debt Management Plans (DMP).
A Debt Management Plan is a service where consumers send an agency a lump sum payment which is then distributed to creditors who have agreed to the plan.
Creditors sometimes agree to lower interest rates, waive fees, and post updates to credit reports as well. The convenience of making one payment to a single credit counseling agency is also a plus. The problem with Debt Management Plans is they only address unsecured debt.
How to Find a Good Debt Consolidation Credit Counseling Agency
A good credit counseling agency is one that offers in-person consulting in your local area. Services beyond Debt Management Plans including personalized education are also good options to expect.
The National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies are the key industry groups for credit counseling agencies to be members of.