It can be very difficult in the current climate to manage your money and it is possible that you might benefit from consumer credit counselling to help solve your problems. It is possible that many people are living within the limits of the money that they have coming in and this is supplemented with the use of credit cards and loans. It is a recipe for problems, it can mean that each month you are paying off the previous months spending with your wage check or even worse it doesn’t meet your monthly expenses.
This might be the time that you turn for consumer credit counselling help. There are many of them that will provide you the right help they will help you create your budget and work with your financial problems. You will need to be careful about the company that you chose because there are some companies that can increase the debt that you owe and not reduce the money that you owe. It is important that you are able to identify the good consumer credit counselling companies from the bad.
It is important that you understand what the company is going to be able to offer you. They are going to be able to provide information on how you need to go about preparing a budget and work out the financial situation that you are in. They might provide some training for you too; they should also be trained and certified as a consumer credit counselling company.
The first session should be free and they should take about an hour with you to talk through your situation and look at the debts that you have and the money that you have coming in, from this you should be given a plan as the best way to get you out of debt.
It will depend upon the amount of debt that you owe; they might offer to start up a debt management plan. This is a plan that you will need to agree to, you pay them a set monthly fee and they pay off money to your creditors, they will also include a monthly management fee as well. They should be able to get a deal from your creditors to reduce the amount of money that you owe.
But be warned this will affect your credit rating and you could end up with owing more paying back the debt plus their fees. If they are ever late with your payment it is not the consumer credit counselling company that gets the late payment on their credit file, it is you.
Selecting the Right Consumer Credit Counselling Company for You
It is important that you get the right company that will help you with your financial situation. Check that the company that you are looking to do business with is registered with the Better Business Bureau they will be able to tell you if the company has got any complaints about them. This will give you a hint as to the quality of the company and should ring alarm bells that they might not be the company for you.
Remember when you contact them that you are armed with a list of questions. Ask them about:
- The services that they will offer you
- Ask them for any free information that they can provide
- Ask them about the fees that they will charge
- Ask them when they think you will be debt free
- Ask them to see their licence to practice and check this is legitimate
Is the Consumer Credit Counselling Company Suitable?
Is the company the best fit for you, is it going to give you the help that you need. It is possible to do all the work that the credit agency is going to do for yourself, but you will need to be committed and able to follow through. You will need to change how you have been living and using your money and this can be difficult but it is not impossible to do.
If you feel that going to the credit counselling is going to be the best option for you then you need to make sure that it is the right company for you. It is important that you read through any agreement before they make you sign, you need to know what you are agreeing to, and it is not unheard of for a company to tell you one thing and you actually sign something completely different. So read any agreement before signing.
They should tell you in the agreement any fees that they are going to charge you and this should be clearly displayed in the information that you receive.
It is the goal of many people to reach the status of financial freedom, this is not going to be an easy road but when you get to the end you will have travelled a long and eventful journey.