The unthinkable has happened -- you've found yourself deep in debt and don't know how to fix it. Help is available in the form of consumer credit counseling services. Learn how credit counseling agencies help consumers in trouble by taking our quiz.
Creditors and credit agencies often use very unpleasant, aggressive tactics to get you to pay debts that you owe them.
Consumer spending accounts for a whopping two-thirds of the $11 trillion U.S. economy. It's really no wonder that personal debt is at a record high.
To help you manage your debt, you might opt for consumer credit counseling. It helps to reestablish your credit by creating a debt repayment plan that you can afford.
The first step is to assess your current financial condition to determine if you can benefit from a consumer credit counseling service.
If you are a good candidate for consumer credit counseling, the agency will help you create a plan to repay your debt to the credit card companies and will teach you how to stay out of financial trouble in the future.
Debt-management plans (DMPs) are not for everyone. Stay away from consumer credit counseling services that offer DMPs as your only option for getting out of debt.
With the help of a credit counselor, you may be able to get your creditors to accept smaller monthly payments or to lower the interest on your remaining debt.
Look for credit counseling services that are non-profit and charge low fees for their services. Beware of consumer credit counseling agencies that charge high fees.
Once you take charge of your finances, it should take between two to four years to get back on your financial feet.
One of the major goals of consumer credit counseling is raising your credit score. Paying off your debt with a debt repayment plan can help you accomplish this.