Credit Counseling
If you tried debt management on your own and were not disciplined enough to stick a workable budget
or were not able to come to new repayment terms with your creditors, maybe you should consider a credit counseling service. Many
creditors are willing to accept reduced payments if you enter into a debt repayment plan with a credit couseling service. When
you work with a credit service you send money each month to the credit counseling service. This money is used
to pay your creditors according to the new payment schedule made by the counselor. Also as part of the repayment plan you
have to agree not to apply for any additional credit while you are in the program.
These repayment plans requires you
to make regular on time payments and could take 48 months complete. Ask your credit counseling service for an estimate of the time
it will take you to complete the plan.
While some credit counseling services charge little or nothing others may charge a huge monthly fee that could add up quite a
bit over time over time. There are some credit counseling services that are funded by contributions from creditors. It is important
to remember that while debt repayment plan can eliminate stress that comes from dealing with creditors and overdue bills it does
not mean you can forget about your debts. You still have to pay any creditors whose debts are not included in the plan.
Also remember to review monthly statements from your creditors to make sure your payments have been received by the service. Just
because you made an agreement with a credit counselor,and they are making your payments, does not mean that you are not liable if
the service is not making the payment. Be sure to use an established well trusted counseling service to avoid any pitfalls.
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