Questions to Ask a Credit Counseling Service about Debt Relief
Debt relief is a topic on a lot of consumers' minds these days, and with good reason. American credit card debt in 2001 was $692 billion, triple the amount from 1989. In that same time period, the average credit card increase for a middle-class family was 75%. The amounts were even higher for low-income families and senior citizens. At one time, such a high amount of credit card debt would seem frivolous as buyers spent money they didn't have on luxury items such as electronics or jewelry. Today, however, in less stable economic times and a poor job market, more people are turning to credit cards as a way to extend their income. More and more debt is being rung up for everyday items such as groceries and medical bills. How can people get real help with debt relief?
Credit counseling services were originally established by credit card companies who wanted to get at least some of their money back before a client decided to declare bankruptcy. While that may seem shady to some people, for others it is a legitimate way to pay the debt they owe.
When seeking debt relief, however, be wary and be an informed consumer. Do your research before signing on with any one service. Here are some questions to ask:
* How much does it cost? Many less-than-reputable services charge hundreds of dollars to start up, money that doesn't go to any of your creditors.
* Does the service notify credit bureaus about your enrollment in their program? Some do and some don't. Creditors may still elect to put a bad mark on your credit report, but the agency you are looking at for debt relief shouldn't.
* What services are offered? Do they offer a range of solutions from trouble-shooting before finances are a big problem to debt management. Beware of companies promising too quick a solution or promising to "fix" your credit report.
* What are the benefits of belonging to one particular group over another? For example, some services offer newsletters and budgeting tips, all to help you become more stable when your debt is paid off.
* Are they a member of the Better Business Bureau? If that is not advertised, check them out with BBB first.
With time, patience and diligence, you can become debt free.
Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt consolidation, credit counseling, repair and free debt relief information that you can research in your pajamas on his website.
MORE RESOURCES:
 |
|
|
RELATED ARTICLES
Debt
We all know about debt. If you don't have too much as an individual you can increase the quality of your life, but with more than you can handle it can make your life a nightmare.
Credit Repair? Its All Up to You
Log onto to a search engine such as google.com and type in the term credit repair.
What is Debt Settlement and How Does it Work?
Debt settlement involves negotiating with a creditor or creditors to pay off a percentage of your total debts at an agreed upon settlement amount. Often, people choose to utilize the services of a debt settlement company rather than attempting to do it on their own.
New Bankruptcy Law Will Not Protect You from Identity Theft
Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy Abuse Prevention and Consumer Protection Act was designed to eliminate "bankruptcy of convenience." The perceived problem is that many compulsive gamblers, shoppers and drug users often run up huge debts on easily available credit cards with no intention of paying their bills.
Deal with All Your Debts with Care!
Lots of people take a large ammount of loans and suddenly they discovered that they're in debt and life seems pretty gloomy for them, in this situation please don't despair. Most people have been there and know just how easily it can creep up on us.
Corporate Debt Management - Perspective on the Why
Entrepreneurs have a tough time in their formative years. They try too many things to get a foothold on this competitive business climate, and that too they try them too soon.
Taking The Plunge Into Bankruptcy
Bankruptcy is one of the most difficult things a person has to do. The decision to file bankruptcy is a hard one.
Debt Management - Is It the Right Choice For You?
Debt Management plans offer credit counseling clients a different and new approach to tackle their finances. Finding out if a debt management plan is right for you can take some time.
The Debt Free Lifestyle
Many people have been taught that you cannot get ahead without debt. We are also inundated with advertising telling us we can have anything we want.
The Bankruptcy Code Acknowledges the Validity of the Homestead Exemption
Many times the subject of bankruptcy seems baffling in its complexity. Actually the basic principals of bankruptcy are fairly simple even though the federal statuses on bankruptcy are extensive.
What Is A Chapter 13 Bankruptcy?
Many consumers that are bogged down in debt frequently turn to bankruptcy as a form of restoring their financial status back to a zero balance. Unfortunately many of these same consumers are confused when it comes to the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy.
Solutions to Single Mothers in Debt
As a single mother, lets admit it, times get tough. You are fortunate enough to have your children that mean the world to you, but it doesn't come cheap.
Bankruptcy: What the New Law Means to You
On April 20 of this year, President Bush signed a bankruptcy reform law. When this law goes into effect in October of this year, it will be much more difficult for Americans to use Chapter 7 bankruptcy to get a fresh start on their financial lives.
How to Protect Yourself: Debt Collections
So you are getting collection calls? You're desk is full of unpaid bills. You dread answering the phone.
How To Get Out Of Debt
If you have found yourself in a position where you are in serious debt and cannot think of a way out of the situation, then take a few minutes to read these few tips. Some may seem obvious but do put them into practise as they will help.
Drowning in Debt? Tips and Tricks for Getting Out of Hot Water with Creditors
Do you, like millions of other Americans, feel like you're sinking in an ocean of credit card debt? Well, fear not--there are many options for reducing your debt way before you have to be concerned about receiving notices or daunting telephone calls from debt collectors. The important thing to remember is to be proactive in handling your credit card debt.
Do It Yourself Debt Relief
With mounting bills and unforeseen hardships, you may be considering some form of debt relief. There are many options to help you, but the best may actually be you helping yourself.
Turning Bad Debts into Good Debts through Investing Fundamentals
If you've ever earned enough money to put some aside, like most people you've probably invested it with an eye toward security - since, perhaps, you can't imagine yourself ever getting rich."Most people dream of becoming rich, but it isn't their first choice," Rich Dad said.
How Do I Lower My Debt Burdens?
How do I lower my debts?There are several ways of improving your credit status. If you have decided upon taking up firm steps to decrease your debts, then you may consider these few ways for dealing with the situation.
Individual Voluntary Arrangements- A New Alternative to Bankruptcy
This May, the Department of Trade and Industry in the UK found that there were 10,091 bankruptcies in the first quarter of 2005. This represents an increase of 24.
|