While millions of Americans continue to face crippling debt problems, there is a growing movement among individuals and corporations to “debt counseling” programs to help people in difficult financial situations. The credit repair process is no longer limited to financial institutions or insurance companies. Recent legal rulings are encouraging individuals and businesses to undertake an array of debt reduction measures and to incorporate counseling into their business processes.
It is important to remember that the credit repair process itself cannot bring about permanent reduction in debts. Rather, individuals and businesses using credit repair techniques and strategies can seek the help of professional debt attorneys and learn the hard way how to best avoid falling victim to scams, misstatements and unfair practice.
Debt counseling represents a series of steps individuals take to help eliminate their credit card debt. It is imperative to remember, however, that while counseling for a credit card debt is helpful, it is only a start. Once this process is complete the process of getting out of debt will quickly become difficult. Individuals should work toward establishing a better credit, establishing a debt-free life, and easing the stress off individuals that come to them as potential creditors.
Several critical differences between personal finance and financial management are clearly visible in differences between these two categories of debt reduction – a debt counselor, an adviser, an attorney or both.
As a debt counselor, you will need to develop a clear and convincing picture of your financial situation. Do not be a game master trying to figure out a way to get out of bad credit card debt. By first developing a clean picture of your financial situation you will be much more likely to get results and even to succeed in creating a better outcome for your creditors. As a debt counselor, you will need to be patient and act on it instead of waiting until after it has already been paid off. By building good financial habits a good strategy against credit repair may become your only option to successfully convince creditors to give you a lower interest rate, or even until your credit rating is back up and rolling.
Let’s face it – just like every other day, countless people take breaks to enjoy themselves while they are suffering from another financial headache. Are they really as needy as we once thought? Is all financial success – achieving financial peace – a temporary respite from the constant pursuit of your financial needs?
Individuals are not created equal. If you find yourself wandering into financial trouble for no apparent reason and because you’re trying to escape the pressure of keeping your credit card debt under control, you’re in for a rude surprise. Perhaps you’ve made the decision to ‘put your foot down and go somewhere.’ Do you understand ‘everyday’ I’m not alone – there are millions of Americans who are struggling with financial difficulty?
In many ways, the question becomes ‘why should I fight to survive’, but one side may argue that on their own they can afford to lose money by negotiating lower interest rates – but in many cases the agreement means you’re forced into paying your credit card debt at an interest rate of less than 20 percent. Why? Because banks charge high interest as well as high fees to keep you’re eligible for credit. Why? Because that’s when you see your higher rates and deposits start getting eaten up by creditors.
There may be some ‘middle class’ individuals who make the mistake of looking like the ‘middle classes’ and come to the credit repair clinics for nothing more than an invitation to ‘fight the good fight’. But that’s not true. If you’re a poor child who drowned a few pennies trying to make ends meet, what benefit could the clinics offer you? They’re a place to put your bank account up for a check rather than send you $25,000 worth of worthless bills. Should you really want a clinic offering you bills, fees or assistance in getting those bills delivered? Don’t get me wrong; it’s a great program and part of the American economy, but your credit card debt should never be the focus of your educational program. You ought to learn to read the clinic brochures and other promotional material before getting involved in debt reduction tactics, because it’s not just about financial issues – talking to your bank or your insurance company for a month won’t do. If you’re stuck in the cycle of credit repair education for 21 years, having a credit card in the first place is far more dangerous than learning that a $25,000 bill should be paid off in 12 months.
Because your current situation is not easy – because you’re trapped under a mountain of hefty down payment, creditors do not automatically pay you off. They’ll always count on you to pay it back at some later date. By taking control of your financial situation’at least with respect to your bills’ you can make your situation worse over time, because they’ll be forced to do the work for you.