LEARNING
CONSUMER DEBT ELIMINATION CREDIT COUNSELING TIPS STRATEGY HELP
MANAGEMENT PRACTICAL ADVICE IDEAS EDUCATION
FREE ARTICLE INFORMATION
When
seeking help with debt elimination, be sure you
know who you are dealing with.
HELP
GETTING OUT OF DEBT
Having trouble with
too much debt?
If so, you are not
alone. To help, there are many
"debt consolidation" and "free
credit counseling" firms that are
interested in your business, and
it's probably best to avoid many of
them.
These private firms
will charge high fees, and not all
of them are looking out for your
best interests.
That does not mean
you can't get good help -- you can.
Here, we will learn about what help
is available for getting our of
debt.
WHERE TO GET DEBT HELP
For help, try taking a look at public credit
counselors who work for non-profit agencies. Credit counselors will,
for a small fee, make arrangements with all your creditors and set up a payment
plan for eventually paying off your debts.
However, keep in mind that you will need to pay off
your debts as quickly as possible, and you will likely only be allowed enough
money to maintain essential living expenses. The positive is that by
paying off your debts quickly, you will likely save thousands of dollars in
interest charges.
BUDGETING EXPENSES
Before seeing the counselor, you may want to try to
put together a budget of your monthly expenses. That way, you will have an
idea of really how much you can afford to pay down debt each month.
Also, the counselor may be able to help you with
your budget, and if you need more time, try to lengthen the amount of time you
have to pay off your debts. The time it will take for you to get out of debt
will likely take at least as long as it took you to get into debt.
Each creditor will have to be contacted to work out
a payment plan, including possibly reduced interest payments. By then
making the necessary payments, and paying off your debt, you can then have your
improved financial condition reported to the credit bureaus to help improve your
credit rating.
AVOID BANKRUPTCY
When working with the counselor, avoid
bankruptcy
unless it is the last resort. The counselor should be doing his or her
best to help you work out a plan to pay off your debts.
WHO TO CONTACT
The National Foundation for Credit Counseling (NFCC)
is the nation's largest and longest serving national non-profit credit
counseling network. They help over 1.5 million households every year
reduce debt and improve their finances. You may visit them online at
www.nfcc.org.
Be sure to research anyone before signing up.
Here are some checkpoints when choosing a credit counselor:
Are they non-profit?
Do they offer low cost services? You
don't want to pay for services that are going to place you further in debt.
Are they accredited? By the NFCC?
Are their counselors properly trained in money
management?
Check the company out at the better business
bureau.
Beware of up-front "processing fees".
Do you have an idea or
recommendation regarding debt help? Then please leave us a
suggestion.
For additional related material for
teaching and learning about debt, please see the following:
CREDIT CARD DEBT LESSONS
Learn credit card basics. Credit cards, credit, and paying interest.
Learning about credit card statements.
When
seeking help with debt elimination, be sure you
know who you are dealing with.
To learn money skills, personal finance, and money
management, please go to the