 |
 |
 |
           |
 |
 |
 |
|
 |
 |
|
|
|
 |
Selecting A Credit Counselor; Asking The Right Questions.
When you find yourself thinking about using a credit counseling service, you need to be very careful. You need someone who will help you, not just some pushy sales associate who wants only to sign you up for their service. You are about to place your financial life in someone else's hands. Make sure you have the answers to some questions before you do. Then make sure you like the answers to your questions. Here are some for starters: Which of my creditors have you worked with in the past? You have a list of your creditors. You want to compare it to the creditors they have worked with in the past. Have they been successful working with your creditors in reducing payments, lowering interest, and eliminating fees? You need to know not all creditors will work with credit counselors. If all, or most, of your creditors have, or will, you should investigate these services further. If not, credit counseling won't do you much good. To protect yourself, ask for a list (in writing) of any of your creditors they have worked with in the past. Will my creditors be paid on time each month? Two things come into play here. What are the due dates of each creditor and when during the month do you get paid? Nothing defeats the purpose faster than paying a creditor late, after you have set up a new payment schedule. Some credit counseling services use a set date each month to make payments from the money you have given them. If they don't have your creditors change the due date you could be socked with late fees each month. Find a service that adjusts the due dates of your bills to work around the days you get paid. How do I pay you each month? The credit counselor can't pay your creditors until you pay them each month. Will they remove money, each month, from your account with an electronic transfer or are you required to send them a guaranteed check or money order? You want to make it as easy as possible for this plan to work. Look for a service that will withdraw funds from your account automatically each month. When and how often will I get statements of my accounts? Just because you have turned over a portion of your financial life to someone else to run, does not mean you don't need to keep track of what is going on. Your statements should break down your payments so you can see where the money is going. How much is going to interest, how much to the principal balances, and how much is being paid to the credit counseling service. Who can I call? When you have a problem or question can you speak with someone on the phone? Are you able to speak to the same counselor each time? If not, how long do you take to returns phone calls? Do this up front. Make sure you can live with the answers you receive. Then test the service to see if they live up to what they have said. Check their service out before you sign on the bottom line. If you find that you can't get questions answered or telephone calls returned look for another service. Going through credit counseling is stressful enough without any added problems. These questions will give you a good idea what kind of service you have found. There are other questions you may ask. If you think of any do not hesitate to ask and don't stop asking until you get the answers you need. It is your money. David Wilding works with both individuals and groups to help them rid their lives of debt. For the past ten years he has attempted to change attitudes toward and acceptance of personal debt. Visit his website http://www.debtattack.com for more ideas, tools, and strategies to become debt free.
MORE RESOURCES:
Debt-Relief - Google News |
|
|
|
RELATED ARTICLES
Debt Free Living - 5 Tips To Get Out Of Debt A few times I wonder what sort of credit system moved the global economy 200 years ago. If the intention of getting into a business is meant to 'help' fulfill the needs and wants of someone, I don't see how credit card salesmen can drove more people into debt and backruptcy. The Credit Card Debt Termination Scam "Legally terminate credit card debt! You can be debt-free in 4-6 months!" Advertisements like this are for a new type of program that has spread via the Internet over the past few years. It's called "Credit Card Debt Termination," and victims are paying $1,000s for this bogus service. Are You SURE Your A Bad Debt? Many people who seek the advice and guidance of debt counsellors are driven to them in the first place by fear and ignorance - two powerful emotions which often mask the real scale of the problems.In many cases, what you made have been led to believe is a 'bad' level of debt, may instead need only some careful reorganisation and a new set of mortgage priorities. IVA Advice An IVA (individual voluntary arrangement) is an alternative to bankruptcy introduced by the government as part of the Insolvency Act 1986. This article provides an overview of IVAs and suggests what readers should watch out for when looking for IVA advice. Debt Recovery Can be Easy OK, so you are up to your head in debt. You are stressed out, it is now affecting the way you function and absorbing most of your daily thoughts. Bankruptcy - Your Fresh Start Most American consumers are living too close to the edge. They are carrying too much credit card and mortgage debt and have too little in the way of savings. UK Debt When Moving Abroad The idea of moving abroad to escape debt seems to be more of a common practice these days. People with failed businesses or swamped in debt seem to think moving abroad will give them a fresh start, free from debt and allow them to build a new life. Take Careful Consideration Before Filing Bankruptcy Filing bankruptcy is not fun! It is a last resort if you are interested in keeping an active and acceptable credit report. Bankruptcy is the condition of bringing all your assets and deficiencies into an insolvent state. Your Secret Weapon... A Budget For many, the word 'budget' immediately sends shivers down the spine. Why in the world would anyone need or want to budget their money?First off, budgeting your money does NOT mean you are poor, or are in need of financial assistance. The Effects of Consumer Debt Consumer Borrowing Consumer borrowing in the UK has now crashed through the £1 trillion barrier. 80% of this is due to credit card borrowing, loans and mortgages. Are You Beating Up On Yourself About Debt? When you hear the word "debt", whats the first thought or feeling that comes to you? For most people debt is "bad" or it becomes the "enemy" and is something that should be avoided like the plague.Having debt does not make you a bad person. Life After Bankruptcy Bankruptcy and Credit - What Happens After Your Debts Are Discharged?Bankruptcy will remain on your credit report for ten years. But you may be able to get credit fairly quickly - almost immediately after a bankruptcy - although you will pay dearly for it. Bankruptcy: Which Chapter Do I File? There is more than one kind of bankruptcy. You should understand your options before deciding which chapter of bankruptcy you are going to file for, or if you are going to file for bankruptcy at all. Is Independence Overrated? Happy Independence Day from The Money Motivator!If you don't celebrate "The 4th of July" like we do in the United States, today still presents you with an awesome opportunity to examine your independence.Independence means the quality or state of being dependent. Stop Debt Collectors Can you stop debt collectors ? . . Debt Elimination 1 If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all the debts disappear. You would probably wish even harder for that magic wand if you were falling behind with, or at least struggling hard to keep up with, the monthly payments on those debts. Debt Handling Solutions Sometimes debt can seem overwhelming. In those instances, or even before things get that far out of hand, get back to basics and try some of these debt handling solutions. What is Bankruptcy? Here is a useful guide to bankruptcy. It should be noted that bankruptcy is not to be entered into without first having sought professional advice. Debt Management - Is It the Right Choice For You? Debt Management plans offer credit counseling clients a different and new approach to tackle their finances. Finding out if a debt management plan is right for you can take some time. Get Debt Free If you once have been caught in the debt trap, how do you come out of it and be debt free? We are different and each of us has our own lifestyle and our own financial state, so the way to debt elimination is different from person to person. One plan will be good for some, but not for others.
|
 |