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Consumer Credit Counseling Relieves Debt Stress

Created: On July 6, 2009 @ 6:41 pm In

Recent reports of credit card companies [1] increasing charges to consumers and the possible role of [2] debt stress in the death of singer Michael Jackson highlight struggles associated with carrying large amounts of debt. Dealing with seemingly insurmountable debt can negatively impact all aspects of your life. If you can’t see the light from beneath  a mountain of credit card debt, consumer credit counseling services may be able to help.

Credit Card Debt Consolidation Through Consumer Credit Counseling Services

Credit counseling services typically offer [3] debt consolidation by working with you and your creditors to develop an affordable repayment plan. Instead of paying several credit card bills each month,  your credit counseling service charges you one monthly payment amount based on the terms of your repayment plan and the service charge for the credit counseling service. Benefits of using a consumer credit counseling service include:

Waivers of late fees, overlimit fees and reduced interest rates: [4] Consumer credit counseling services neogitiate fee waivers and reduced rates that enable you to pay off debt faster and at less expense.

  • Make one monthly payment: Your credit counselor can help with debt management through a debt consolidation /repayment plan. The credit counseling service pays your creditors; this reduces your risk of damaging your credit score with late or missed payments.
  • Eliminate or reduce calls from creditors: Depending on arrangements made with individual credit card companies, consumer credit counseling services usually communicate with creditors on your behalf, and ask that you refer creditors or collection agents to them.
  • Track your progress:  Consumer credit counseling agencies typically provide statements showing how your payments are applied and document progress toward paying off your debt. Seeing your progress can help keep you motivated.
  • Signed agreement: Consumer credit counseling services provide a written contract or service agreement that discloses the terms of your credit card debt consolidation plan and specifies payment amounts and due dates along with other terms and conditions.

Consumer Credit Counseling Services: Things to Consider

Credit counseling services provide prorams designed to expedite getting out of credit card debt, but it’s important to understand their requirements.

  • Closing your credit card accounts: As part of their agreement with credit card companies, consumder credit counseling services require clients to close their credit card accounts as part of their debt consolidation agreement.
  • No magic “fix” for credit reports: Consumer credit counseling agencies cannot alter credit reporting for events that occurred prior to enrolling in your credit card debt consolidation plan. If you’ve made late payments, or otherwise defaulted on credit card accounts, this information remains on your credit reports.
  • Buyer beware: Choose consumer credit counseling services with care. There are plenty of scams out there; if something sounds too good to be true, look elsewhere for help.

Get started with credit card debt consolidation today and leave debt worries behind.

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URL to article: http://www.debthelp.com/blog/2009/07/06/consumer-credit-counseling-relieves-debt-stress/

URLs in this post:
[1] increasing charges : http://online.wsj.com/article/BT-CO-20090706-707923.html
[2] debt stress: http://www.cbsnews.com/stories/2008/06/14/earlyshow/health/main4181227.shtml
[3] debt consolidation: http://www.debthelp.com/debt-consolidation/credit-counseling.html
[4] Consumer credit counseling services: http://www.nfcc.org/CreditCounseling/counseling_01.cfm