Tuesday, August 21, 2012

Personal Debt & Credit Counseling

You are a likely candidate for credit counseling if you are struggling to pay your bills on time, frequently borrowing against lines of credit to pay other bills or often making withdrawals from your savings or 401k to meet monthly obligations.

Credit Counselors

    Certified Consumer Credit Counselors can advise you on financial strategies for getting out of debt and maintaining a budget. Its services include: credit management education, confidential debt counseling and home buyer education.

Bankruptcy and Foreclosure

    Credit counselors can also advise you on sensitive topics such as bankruptcy, debt settlement, home mortgage delinquency, avoiding home foreclosure and more.

Finding A Counselor

    A good place to start is The National Foundation for Credit Counseling (NFCC). The NFCC is a national nonprofit network with counselors in nearly 850 locations across the United States. Some counselors even offer counseling sessions by phone or over the Internet. The NFCC provides a directory of counselors at its website: http://www.nfcc.org.

Doing Your Homework

    Be sure to ask good questions and investigate any counselor or agency you're considering. Unfortunately, there are scam artists in the industry whose real purpose is to sell you services you don't need or which will put you further in debt. Once you have developed a list of potential counseling agencies, check them out with your state attorney general, local consumer protection agency or the Better Business Bureau. For more information on how to investigate or what questions to ask, visit the website of the Federal Trade Commission: www.ftc.gov

Costs

    Many services provided by nonprofit credit counseling agencies are often free, such as budget counseling sessions and advice on debt management plans. Other services, such as working with you monthly on a long-term management plan, require a nominal recurring fee starting at about $25.

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