If you find yourself living from paycheck to paycheck, you are not alone. Millions of Americans are struggling with financial debt. If you cannot seem to find a solution to mounting financial debt, consider the services of a debt counselor. Some credit counseling services even offer their services for free. A debt counselor may be able to help you find a workable solution to your financial problems.
What To Expect
After taking the first step of making an appointment with a debt counselor, you will have a one-on-one meeting. He will ask several questions about your current debt situation, including your currently monthly income and expenses. The counselor will look at your debt account statements, discuss your individual circumstances that led to your financial problems and recommend a plan of action.
Services Offered
A debt counselor will work with you to develop a budget, accessing your income and expenses on a monthly basis. He may offer your educational materials or enroll you in a debt management workshop. If you are in severe debt, the debt counselor may recommend you enroll in a debt management plan. If you enroll in a debt management plan, the counselor will set up a repayment plan with your creditors. While you are enrolled in a debt management plan, your creditors may stop assessing finance charges, or at least lower your interest rate. Enrolling in a debt management plan will usually stop harassing phone calls from creditors.
How To Find a Reputable Debt Counselor
Debt counselors offer their services through various organizations. Check with such places as universities, military bases, the U.S. Cooperative Extension Service, local banks, credit unions or housing authorities. You should check the credibility of a debt counselor with such organizations as the Better Business Bureau, the National Foundation for Credit Counseling or the Consumer Credit Counseling Service. The Better Business Bureau will be able to tell you if any complaints have been filed against the company.
Warnings
Beware of doubt counselors who charge very high fees for their services. Reputable services will send you free information upon request about what services they provide and the fees charged for these services. Do not believe unrealistic promises in advertisements such as being able to settle debt for pennies on the dollar. If the debt counselor wants to enroll you in a debt management plan, make sure they provide a written agreement detailing all services and fees before they charge you any money upfront. You should also not make any payments until you are sure your creditors have accepted you into the debt management program.
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