The U.S. census bureau reported in 2010 that U.S.citizens had more than $886 billion in credit card debt, but it also found that credit card delinquencies had fallen by 17 percent despite the economy in America at the time. More people are attempting to consolidate their credit card debt into one monthly payment, and they are employing the aid of credit counseling agencies to help them deal with past-due accounts, high-interest cards and accounts in collections.
Instructions
- 1
Find a reputable credit counseling agency in your area. Ask for referrals from family and friends, or contact the National Foundation for Credit Counseling, which has on its website a list of reputable credit counseling agencies in each state. Both for-profit and nonprofit agencies are available. Contact an agency, explain your situation and request a free consultation. Ask questions about the services each provides and any costs associated with their services.
2Gather your credit card statements and collection notices. The credit counseling agency will need copies to compile an accurate debt consolidation proposal for your review. Verify that the information in the proposal matches the information on your credit card statements. Make certain you read and agree with all aspects of the proposal before you sign an agreement to enroll with the agency's plan.
3Sign an agreement and allow the agency to contact your creditors on your behalf. Be prepared to have one lump sum deducted from your bank account each month to be distributed to your creditors on your behalf. Follow up with the agency within one to two months to verify that the accounts in collections have been accepting payments and that all your creditors have accepted the agency's proposal for your debts. After six months, contact the creditors whose accounts had fallen into collections. Verify that payments are being received, and request that they stop reporting the status of your account as "in collections."
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