A Debt Management Consultant is Often a Credit Counselor
The path to a debt free life can be difficult to follow, but debt management consultants can make finding and sticking to the best path for your situation easier to accomplish.
A Debt Collection Lawsuit Can Protect your Rights
Collection agencies trample on your rights so frequently that they expect to get away with it. A lawsuit can stop them dead in their tracks.
Credit card debt settlement lies and consequences
Some companies may give you false information.
Avoid Payday Loans: Some Alternatives
Payday loans, short-term, high-interest loans actually are high cost and only worsen the effects of the paycheck-to-paycheck lifestyle in the long run. 
How Can Students Establish Good Credit?
Two of the best ways for students to establish credit are to either get a secured credit card, or become an authorized user.
Debt consolidation in California begins with accredited firms
Here are three accredited names to start your search.
In-State vs. Out-of-State Tuition
The cost difference for in and out-of- state tuition is immense, more than double the price.
What Your Credit Score Really Means
Although your credit score is not what defines you as a person, it can most likely be what defines you as a borrower. Lenders use credit scores to predict repayment rates based on past performance.
Reputable Credit Counseling Agencies in Des Moines, Iowa
These agencies are accredited and are members of NFCC or AICCCA.
A Bad Debt Consolidation Remortgage Might Work When Other Borrowing is Cut
Are you willing to risk your home to reduce interest on unsecured debt?

Call us now

1-800-838-0861

How Does Credit Counseling Work?
Credit counseling was created by credit card companies in 1951. The purpose of credit counseling was to provide debtors with an advocate that would facilitate their repayment to their credit card companies.

In short, creditors know that you need some help sometimes. They just don't want to be the only one to lower your payments and reduce your interest rates. After all, why should their competitors continue to charge full price if they are willing to give you a break?

Credit counseling combines the financial education and budget counseling provided by financial counselors with the benefits and structure of a debt management program. The result is a tailored solution to help you, the debtor be able to afford your monthly credit card payments while being able to realistically repay the debt within a three to five year period.

To see how this works, imagine how much of your minimum payment actually goes towards the principal balance. Out of a $30 minimum payment, $20 or more can be due in finance charges, leaving about ten bucks to go towards reducing your balance.

That same account may reduce your monthly payment to around $24 through a debt management program, thereby making it easier for you to pay. At the same time, since credit card issuers frequently reduce interest when you are on the program, your finance charges might drop to $8, freeing up $16 to go towards the principal. So even with a lower payment, much more of each payment goes towards reducing the balance. The longer you are on the program, the lower your finance charges and higher your principal payments.

While most major credit card issuers participate in debt management programs, not all creditors do. For example, if you allow an account to go into default, the lender may transfer the account to a collection agency. Collection agencies do not provide benefits through credit counseling. If you are behind on your payments, it is important to seek assistance before the accounts charge off.

The benefits of credit counseling are real. Remember that your card companies are not evil. They are simply trying to maximize profits. Credit counseling is a part of that plan, since your creditors must help you avoid default if they want to protect their bottom line.
Current Rating: 0 (0 ratings)
Share:   Add to Twitter   Add to Facebook   Add to Terchnorati   Add to Google Bookmarks   Add to Digg   Add to Reddit   Add to Delicious
Defeat Your Credit Card Debt Today!
 

() -


*Please input the following code to safely submit your information.
 Security code