Debt Counselling Info

With the current economy, many of us have found ourselves in debt to a level that far exceeds our normal comfort zone.  In order to get relief from the stress associated with being that far in debt, it is wise to meet with a debt counselling agency and discuss the options for reducing or eliminating the burden.  The important question then is who to meet and how to find the right agency.  Some debt counseling services can be overly expensive, and some of them are full fledged scams, disguised as legitimate businesses, which will leave the unsuspecting consumer with little to no relief or, worse yet, even farther in the financial hole than they were when they started.  Many consumers get caught in these traps because they fail to educate themselves regarding normal debt reduction practices and decide to sign on with the first consumer debt counseling agency that comes along.

Debt Councelling Info is an informational site dedicated to gathering and presenting credit debt counseling information in one location, thus saving it’s visitors time while helping them to avoid the mistakes that may land them in the middle of a scam.  It is designed to educate visitors by giving brief explanations of debt reduction options, so they will be able to shop around for the right agency, ask all of the right questions and make informed decisions about how to proceed with reducing their debt.

The best part of Debt Counselling Info is that it is 100% free.  No visitor will pay a dime for any of the information found here.  This site merely pools as much information as possible into one location so our readers won’t have to spend a lot of time scouring the internet.  The ideas are presented in a series of articles designed to enlighten and arm the consumer with some of the basic knowledge necessary to ask the right questions and move forward.

The following articles address important topics and information we have found on line regarding debt settlement counseling, debt consolidation counseling and some very important information about the kinds of ‘debt relief’ scams that exist and how to avoid the traps set by the con artists behind them.

Please peruse the following articles before you continue on with your journey towards debt reduction.  We hope the ideas here will save you some time and headaches.

If you are looking for more information on debt consolidation counseling, you’ll want to read this article. Specifically we’ll discuss the benefits and drawbacks of debt counseling as well as provide you with a list of questions to ask any counseling agency you are considering working with. By the end of this article you’ll have a better understanding of debt counseling and will be able to determine if the benefits outweigh the drawbacks in your situation.

Benefits of Consumer Debt Counseling

If you find yourself with more credit card debt than you can handle, consumer debt counseling may be able to help you. Here are a few of the benefits.

• The primary service that these counseling agencies provide is to negotiate with the credit card agencies on your behalf. The goal of the negotiations is to get you a lower interest rate and, if you owe any late fees, get them waived.

• The consumer debt counseling agency will use the savings they have negotiated to consolidate all of your payments into one lower payment. Generally you make this payment to the debt counseling service and they disburse the payment for you.

Drawbacks of Debt Consolidation Counseling

While debt counseling can be a huge benefit, there are a few drawbacks to be aware of.

• In many cases, when you enter into debt consolidation credit counseling, the cards you consolidate will be closed. If you think you will need access to the credit available on your cards, think carefully before beginning counseling.

• Your credit report will note that you are in credit counseling for each card you consolidate. This notation will significantly impact your credit score in a negative way and will remain on your report for as long as you are in the program. Depending on how much you owe, this can be several years.

• It can take over 30 days for your first payment to the debt counselling agency to be processed, which means in your first month you may need to pay the agency PLUS your credit cards. Be sure to investigate this if you cannot afford a double payment.

Questions to Ask Before Beginning Debt Counselling

Before beginning any debt counselling service, speak to a representative of the agency and be sure to ask the following questions. A wise idea is to get the answers to these questions in writing, and be sure to read the fine print of any agreement you sign.

1. Are there any fees involved?
2. When I make my first payment, how soon will it be forwarded on to my credit cards?
3. Will my credit card payment due dates be adjusted to coincide with my payments to the credit counseling agency? Will this happen automatically or do I need to call each credit card to make the change?
4. How does your agency make its money? Is any of the income that the debt counseling agency brings in coming from the credit card companies?
5. How will entering into your debt consolidation credit counseling impact my credit?

Conclusion

Credit counseling can help negotiate your interest rates to more affordable levels, and even possibly eliminate late fees. However, credit counselling will also negatively impact your credit report and may require a double payment in the first month. Before you enter into debt counseling, ask yourself if the benefits outweigh the drawbacks.