If you're at the end of your rope, a credit counselor can provide the support you need. Participation in a debt management plan can mean you don't have to deal with (or dodge) calls from creditors and you don't have to juggle a stack of bills each month. Some organizations even help you reestablish credit once you've paid off your debt.
Of course, all of this does not come without a cost. Participation in a debt management plan can mean a "black mark" on your credit report because creditors are not receiving payments according to the terms of the original agreement. In reality, this may not be a reason not to participate -- if you're not able to make full and timely payments on your own, then you're going to end up with a mark on your credit report anyway.
For some, a debt management plan feels confining. You may have to live according to a fairly tight budget in order to make the monthly payment, and all your credit accounts (except, in some cases, one) might have to be closed.
And keep in mind that a debt management plan is not a quick fix. It takes many people three to five years to pay off their debt.
Many, if not most, of the counseling agencies that are members of the NFCC go by the name of Consumer Credit Counseling Service. Because there are so many different credit counseling organizations out there (some, members of the NFCC, and some not), be sure to ask about all applicable fees (for counseling and for participation in a debt management plan) before you sign up for services. Understand exactly what you're getting and what it's going to cost you. If you're interested, ask the organization about their education program. Some offices offer free personal finance classes.
Remember, you don't have to deal with bill problems all by yourself. For many consumers drowning in debt, credit counseling is the lifeline that helps them keep their head above water.
No comments:
Post a Comment