The Many Benefits of a Credit Counseling Service

The many benefits of a credit counseling service are not limited to those who find themselves deep in debt. A number of people are choosing to be proactive about their financial health and consult a credit counselor before they begin getting those annoying phone calls. In addition to working with your creditors directly to negotiate payment plans, credit counselors help you stay on track by working out a realistic budget that you can stick to and giving you the resources and support to monitor your spending.

For your initial meeting, consumers will be asked to bring their basic financial information, including proof of income, current credit card statements, bank statements and mortgage or rent receipts. Credit counseling agencies will have you sign a confidentiality statement promising to keep your information private. Most people find that the many benefits of a credit counseling service begin with a candid look at the mistakes they are making now, which include being eaten up by fees. Home owners can usually take advantage of refinancing their mortgage to get a lower rate and many credit card holders with good payment records can get their interest reduced.

If you're already to the point of fighting off creditors or even filing bankruptcy, a credit counseling service will make sure you don't go through it alone. By working directly with your creditors, credit counselors can negotiate settlements, where you pay a greatly reduced lump sum to take care of your debt, or a monthly payment plan that you can handle. In terms of bankruptcy, make sure you find a counseling agency that is approved by US Trustees for the required pre and post bankruptcy filing counseling sessions.

Referrals are also one of the many benefits of a credit counseling service. Some agencies are limited in the types of assistance they provide and it's often necessary to direct you to outside help which include debt consolidation agencies (that combine your debts into one lump sum that you pay down monthly), rental and utility assistance (that help you maintain your quality of life) and legal help (in case you're being sued by a creditor).

Because money is usually an issue for people seeking credit counseling, some agencies provide help for a minimal fee. For example, Credibility Counseling Service gives you a free initial consultation and charge a minimal fee for more specialized services like bankruptcy or foreclosure help. Be careful of agencies that claim to be able to "fix" your credit and ask for a large fee up front, look for non-profit agencies that only provide educational. referral, and budgeting services.

If you recognize that a financial problem exists, the worst thing you can do is ignore it because it is not going to go away on its own. Take positive and proactive action now before things go further downhill and seek out a good creditcounselingtips.com Credit Counseling Service to help you out. For more insights and additional information as well as a wealth of resources to help you get started in the right direction, please visit our web site at creditcounselingtips.com creditcounselingtips.com