Consumer Credit Counseling Services can help protect your credit score by assisting in devising a plan that helps you pay it all back on time and avoid filing for bankruptcy. Staying on top of your monthly bills and properly managing your budget makes the difference between ruining your credit and building positive credit history. Finding a quality credit counseling agency can help you achieve the financial freedom you deserve.
An Inside Look at How CCCS Can Help Someone Solve Their Debt Problems and Get Back On Their Feet
Credit card debt is one of the biggest issues here in America. Too many people have debt piling up. Too many people continue to make the same mistakes over and over again. Some people get out of debt and stay out. Some people get out of debt and go right back in. It all depends on a person’s eagerness to get out of debt and their personality. There are many people who work with money for a living and still wind up in debt.
However, there is hope! The first thing to do is for a person to identify where their debt problems are coming from and put a stop to it ASAP. The next step is for them to call a Consumer Credit Counseling agency. Many have used CCCS agencies in the past and their history with their clientele speaks volumes.
An Overview of CCCS Agencies –
They are usually a non-profit organization. The first thing they will do is go over a person’s financial situation. See what the person owes, how much, and to whom. Their credit counseling staff will identify the core issues and help set a person on a direct path to getting out of debt.
Part of this path may include a Debt Management Program. This Debt Management Program identifies which financial obligations need to be tackled first and then work their way back from there. It reduces interest rates, waives late or over-the-limit fees, and gets the creditors off your back.
They will also give you a household budget to follow, a payment plan that fits in with your situation, and some financial tips to help you keep on track. Their clients are not obligated to follow their tips. However, it is advised that they do so because it will help them get out of debt faster.
Some Benefits of Working With CCCS –
There is only one payment to make each month and it’s paid to the credit counseling agency. It is designed to work with a person’s budget and keep the creditors off the person’s back. How much a person pays depends greatly on how much a person owes and also to whom they owe. Some owe very little. Some owe a whole lot.
The budget works within a person’s means. This realistic budget teaches that when someone cannot afford something, then they should not be buying it. It is designed to keep all of your household expenses including unsecured debt paid down and get it all paid off, maybe even have some money left over.
Through CCCS a person is going to have lower interest rates and usually, any late or over-limit fees are waived. When creditors and credit card companies do not have their money on time, they tend to raise the rates and they report any late payments to the credit bureaus.
Coming Into Credit Counseling Prepared –
Prior to meeting with a credit counselor, you should prepare for the appointment by gathering all of your pertinent financial information. At a minimum, you will need your monthly income details for at least the last three months (pay stubs), copies of any bills or debt that is owed, and a detailed account of your typical spending habits. This information is vital to preparing a thorough financial plan and budget.
When you meet with the credit counselor be certain to ask for all of the repayment options available to you. While a reputable counselor should provide this information without your prompting, it’s always a good idea to just get this information up front. Before you agree to have any particular credit counseling service handle your debt management, get these details in writing to protect you from unexpected surprises down the road.
Picking the Best Choice for You –
While the services the credit counselor offers you will help you get out of debt, not all types of debt repayment plans will have a positive effect on your credit score. As each option is presented to you, ask what the repercussions to your credit score will be. Consider the time it will take to fully repay each debt with each plan offered to you before you make your choice.
Bankruptcy and Debt Settlement will have the most negative and detrimental effect on your credit score. While a debt management program may show up on your credit report, your credit is usually not negatively affected. If your credit score should drop a little it will easily be raised back up again when you start making your monthly payments to the credit counseling agency and they, in turn, pay your creditors on time. This will improve your credit score over time.
Ultimately, choosing the debt repayment plan that will do the least amount of damage to your credit with the fastest pay off time is the ideal solution to choose. It is also important to understand what the best plan will cost you. If the interest rate on the repayment is high, always try to choose a plan that will allow you to pay a bit more than the monthly payment so that you can shave off some of the interest. By paying a little more than your required payment each month you can often save thousands of dollars in interest costs alone.
Consumer Credit Counseling Services and Advantage CCS can help you avoid the negative marks on your credit while helping you regain control over your financial life. To learn more about Consumer Credit Counseling Services and to contact a certified credit counselor today, click here. The call is always 100% free and completely confidential. We’re here to help you and we’ve been helping consumers since 1968!