If you are having debt consolidation issues and need debt help or some type of free, non-profit or regular credit counseling assistance, there are several steps you should take:
Step 1: Gathering all Your Financial Information
Before contacting a Credit Counselor, gather all your financial paperwork (monthly statements, payments due, interest rates, etc.). Also don’t worry if you can’t find some documents. Once you contact the Credit Counselor, he/she will inform you of any extra paperwork that might be needed to begin the process
Step 2: Analyzing Your Financial Situation
Once you’ve called the Counselor, he/she will ask you several questions so as to fully understand your financial status. Some facts taken into account when examining a consumer’s finances include:
• Your income
• Other financial responsibilities
• Interest rates for each loan
• Total amount of money you owe to your creditors
• Minimum monthly credit card payments
Step 3: Creating A Repayment Plan
After you have gone over your finances, the Credit Counselor will prepare a repayment plan that suits your needs and your budget as much as possible. The plan is then sent to your creditors. Your creditors will get back to your Counselor either approving or rejecting the offer.It’s almost as if the credit counselor is acting as an attorney in a credit matter.
Step 4: Paying the Certified Credit Counseling Company
If the creditors approve of the repayment plan your Credit Counselor proposed, you’ll be able to begin making payments to the Counseling Company. How does it work? Following the guidelines for your repayment plan, your Counselor will distribute each payment to your different creditors accordingly.
Next is to find a reputable Credit Counselor or Credit Counseling Company
The first step to financial freedom is knowledge, but fully comprehending your finances isn’t simple, especially once they get out of hand. This is why a Counselor could be very helpful in this matter. However, you must make sure he/she is a reputable professional working for a legitimate company. Of coarse you want to make sure your finances are in good hands.A great idea is to check with the BBB and make sure that have a strong background in the industry.
A great option is contacting a company such as Community Credit Counseling Corp. Community Credit Counseling Corp or www.commcredit.org staff of highly trained Certified Credit Counselors will be more than happy to answer any additional questions you may have. Give them a call and ask about how they can help you with debt consolidation, credit counseling, etc.
I wish you the best!