Debt Consolidation -- Choose Your Credit Counselor Carefully
Recently passed by Congress, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 will require people who are filing for bankruptcy to first undergo mandatory credit counseling.
This is probably not a bad idea; after all, many people with problem debt could probably benefit from credit counseling. A good credit counselor can assist clients with problem debts in establishing a repayment schedule, creating a personal budget, and learning how to avoid debt and credit problems in the future.
The problem is that with the estimated one and a half million additional people seeking credit counseling each year, there will undoubtedly be more credit "counselors" entering the market, and many of them are only interested in reaping huge profits at the expense of their clients. There are already a number of credit counseling firms working in the marketplace that advertise themselves as "nonprofit", when they actually are closely tied to for-profit debt consolidation firms. These agencies will strongly encourage their clients to consolidate debt through their partner company, and the result may be a long term loan for the client that doesn't help them at all, but reaps huge profits for the consolidation firm. How can someone who is genuinely seeking legitimate, helpful credit counseling choose a counseling agency wisely?
*Counselors should listen. If they start pitching a solution to you during the first fifteen minutes you are there, you should be suspicious. A credit counselor should be gathering information about you in order to determine how best to help you. They can't possibly know how to help if they don't understand your problem. Unless, of course, they don't care about your problem and only want to sell generic "solutions."
*Watch out for firms that want excessive fees up front. Be particularly wary of nonprofit agencies that ask for fees or "voluntary contributions" or nonprofit agencies that tell you that they cannot help you if you do not pay a fee upfront.
*Sometimes, bankruptcy is unavoidable. Watch out if the agency doesn't mention bankruptcy at all, or if they change the subject if you bring up the topic. Debt consoldators cannot make any money on bankruptcy cases, but sometimes, that's your only option.
*Shop around. Talk to several different agencies and compare what they tell you. Any agency that differs dramatically from what the other agencies are telling you should probably be avoided.
*Check with your local Better Business Bureau, and ask if they've had any complaints about the agency.
*Watch out for firms that offer quick solutions to your problems. You didn't get into financial trouble overnight, and you won't get out of financial trouble overnight. Any competent debt or credit counselor will know this and will undoubtedly tell you that working your way out of debt takes time.
*See if the agency belongs to the National Foundation for Credit Counseling or Association of Independent Consumer Credit Counseling Agencies. Many do.
By taking a few simple precautions before agreeing to work with a credit counselor, you may save yourself a lot of grief and a lot of money later.
Charles T. Essmeier, Jr. is the owner of Retro Marketing, a firm which operates several informational Websites, including http://www.End-Your-Debt.com/ a Website devoted to information regarding credit counseling and debt consolidation.
Related Articles:
Bad Credit Loans and Achieving your Dream Home
For most middle class families today, owning their own home is the biggest priority in their lives. It?s their dream to someday be in a home which they can truly call their own. But alas not everyone will be able to realize this dream. This is mainly due to months or even years of neglecting their credit rating making getting finance for mortgages next to impossible.
MWB Business Exchange Reports City Looking to Flexible Leases Post Credit-Crunch
MWB Business Exchange report that banks and financial services companies in London have made clear moves towards flexible serviced office space to manage property risks, a trend expected to continue in the post credit-crunch environment.
Extending Consumer Credit Requires Compliance With Federal Laws
It is important for any prospective business purchaser to perform due diligence in researching a potential target business. Some of the documents you will need to collect and review in your analysis of whether a particular business would be a good acquisition include the following types of documents.
How To Plan A Baby Shower Without Breaking The Bank
Everyone feels happy and joyous when a close friend or relative announces that she is expecting a baby. Even though somewhere in the world, a baby is born literally every second, the fact that someone you know is expecting a child is very special news. For some expectant women this may be the most exciting thing that is ever going to happen to them. Some people spend years trying to fall pregnant so the occasion for them can be overwhelmingly emotional. Whatever the circumstances this news is a great reason for a celebration and this is usually in the form of a baby shower.
Home Loans – Repair Your Credit Before You Buy
Before you take out a home loan or make any major purchase, you should be aware that any prospective lender will want to take a look at your credit report. Your credit report is a record of all of your past financial dealings, and any loans, credit cards, judgements, bankruptcies or other major financial transactions are listed there.
Bank Of America - Make-A-Wish Visa Credit Card Is A Boon All The Way
The Bank of America is well known for its financial products and services around the world. Bank of America - Make-A-Wish Visa credit card is one such financial-service from the Bank with a philanthropic angle to it.
How A Cash Back Credit Card Works
Over the years, credit cards have become popular over time due to new rewards, new perks, and more benefits. With the future looking even brighter, people are loving credit cards more and more. One of the more popular types of credit cards today are cash back credit cards. Unlike a regular credit card, a cash back credit card will enable you to get cash back on all of your purchases.
Managing Credit Cards Effectively
Credit cards are almost a necessity in today?s society. It has become harder and harder to get through life without plastic. If you want to make purchases over the Internet, guarantee a hotel room, or perform a wide variety of other financial transactions, a credit card is essential. And, the truth is, credit cards can be a valuable financial tool, provided you manage them effectively.
Real Estate Using No Money Down and Bad Credit
First let just say that you can get into real estate even with poor or bad credit and no money.
