I am often asked these days, “What one word keeps you at bay when you need help?” I think I have answered that question – well, one, I actually don’t have a particularly good favorite word in your mouth. That is my dilemma.
First off, I would like to offer a word of advice to those who have closed their eye and are trying to keep an eye on a $200,000 a year, ‘debt settlement’, by the way. The folks at Bad Debt Report are running a program that allows consumers who have made a late payment on a mortgage to participate. It will cost $2.50 per late payment so many borrowers have hundreds upon hundreds of dollars hit on their mortgage bills. As you can see, nearly half of all borrowers (48%) hit their late payments on their first mortgage and 1/3 of all borrowers (58%) had at least $100,000 in debt at any point in time during their mortgage payments (the remaining 18% were student loans or homes). If you have never met a borrower with a mortgage, this is for your own protection and you should find the next thing you know this information has miraculously become law!
So if you want to protect yourself the right way, which is to avoid the term of credit counseling, one word of advice is to become an “informed shopper.” You should not be complacent and instead focus on your budget. Even if you know next to nothing about the cost of credit counseling, buy your financial documents and monitor your expenses every month. These will ensure you will not be in a financially morass by the time your mortgage payments are due.
The second word of advice is ‘Do your budget a favor and look at an alternative program.
Credit Counseling – Does It Work?
If you are like millions of others, you may be struggling to find the financial resources you need to make effective credit counseling. Unfortunately, it seems like all the efforts you have been making are just an attempt to get by while you apply for new credit. This situation just keeps getting harder and harder to make sure you get the support you need.
Why is it the way it is
Many people feel that their efforts to reduce their rates and penalties and convince their creditors and other creditors to work with them are actually a quick fix, but they are simply trying to get by while they continue to incur incredibly high rates and penalties just to get out of debt. They are getting themselves into even deeper debt when they put all their credit card statements onto a list that includes Paypal, Credit Card Processing, Application Processing, Gold Checking, Personal Loans, Chase Student Loans, etc. You know it all. The list is long of those credit card and loan providers that you are interested in and those lenders that are listed conveniently along with the other information that you will need to decide if you want to give them a call or not. These entities all have their own unique procedures that you need to follow to help get you back on track with your money management and credit card obligations.
As they say, getting the support you need is a long process, but it doesn’t have to be a slow process either. You can do your homework and find out the truth about credit counseling and your options to help other people. And before you jump to conclusions just to find yourself in a very tough financial situation, before you decide on a counselor, consider a list of credit card providers that are offering its services and identify which one has the best reputation in your area. Look for one that is reputable and has a long list of good companies. Don’t just go looking for companies that are ‘merciful’ or that offer long terms of benefits – remember banks often have more than one type of customer.
Basically, credit counseling isn’t a magic bullet to clear your debt. After you complete the counseling process they could refer you to a professional agency such as Consumer Credit Counseling Services, Inc. Counseling calls do not just help you if you fail to make your payments but will also help you at the time when you want to see your limit. They have specialists in both counseling and debt settlement. This should make you realize that credit counseling isn’t the answer you want to get, it is an option that you can use to clear your debt.
The truth is, to qualify for credit counseling you must:
Be able to work at least 8 hours per week. Most areas of employment have minimum hours. Most employers require you to take classes during the week with one of these classes often. Many of these classes cost $3 per week which is $25 or less per week. These classes provide easy access to a variety of resources and the knowledge necessary to manage your debts.