Stretched beyond their financial limits and struggling to pay their credit card balances, indebted consumers may find it difficult to see the end of the tunnel. Whether it is calls from collectors, over limit and late fees, denial of credit, or high interest rates, overburdened cardholders can regain control of their finances by seeking credit debt counseling.
Credit Counseling Benefits:
Before their credit debt load attains mammoth proportions, borrowers should consider enrolling in some type of credit debt counseling program. The benefits that can be reaped from credit card counseling are as follows:
Assistance with establishing a manageable spending program Reducing monthly payments and interest by negotiating with credit card companies Obtaining a reduction in or an elimination of finance charges Consolidating payments Crafting solutions to achieve financial goals
Credit Counseling Services:
A reputable credit counseling agency can also offer a lifeline to financially-distressed individuals and families by extending the following services:
Advice on debt and money management A one-on-one discussion of debtors’ financial predicament Negotiation with credit card companies to lower interest rate and eliminate late fees Development of a personalized plan for resolution of monetary issues
Furthermore, many credit card debt counseling agencies offer their services in different foreign languages. Cardholders should choose a credit counseling agency that is a member of the largest and most esteemed networks of credit counseling agencies, namely the Association of Independent Consumer Credit Counseling Agencies (AICCCA) and the National Foundation for Credit Counseling (NFCC). They should also consult the United States Trustee Program’s state-by-state and district-by-district listings of approved credit counseling agencies.
Recommended Credit Counseling Resources:
More and more American consumers are relying upon the following two resources, which are free, easy and expeditious: 1. Family Credit Counseling:This non-profit Christian credit counseling organization reaches out to borrowers throughout the nation, helping them to achieve a debt-free existence through debt management. Some of the key services provided by family credit counseling are the following:
Analyzing cardholders’ spending habits and debt for purposes of assessing their present financial status Teaching debtors how to rebuild credit and establish a positive credit score Creating a debt-elimination plan to enable borrowers to attain their financial objectives Negotiating lower payments and interest rates on behalf of their clients Supplying a multitude of calculators as an aid for debt analysis Furnishing financial educational pamphlets
2. The Credit Counseling Foundation (TCCF)Through this non-profit organization, cardholders nationwide who are wrestling with monthly payments may obtain confidential credit counseling and debt management services, as well as debt education. The Credit Counseling Foundation helps borrowers avoid having to apply for a debt consolidation loan that does not address the root of the problem or to file for bankruptcy, a measure of last resort. Its debt help program helps consumers save a substantial amount in finance fees. The Credit Counseling Foundation assists borrowers in a number of ways, including the following:
Instructing them on basic budgeting techniques and offering them personally-tailored budgeting tips Providing at no cost a credit counseling session on financial education Teaching them how to reduce their debt