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How Does Credit Counseling Work?

April 24, 2009 by DebtGenius2 Comments Tweet this post

If your debts are out of control, credit counseling could be a great solution for you. Credit counseling services can be set up quickly so that:

• You can stop collection calls

• You can ease the financial stress in your life

• You can work toward getting back on track

Financial stress can take a toll on every aspect of your life. There are a lot of reasons people seek the assistance of a credit counselling service that can help them with debt counselling and assist in relieving the pressure while creating a workable plan.

What does a credit counselling service do?

Credit counsellors look at your entire financial situation and then they propose a plan with your creditors. Very often they’ll be able to get your interest and / or late fees dramatically reduced (or sometimes eliminated altogether) and the counsellor and your creditor will come to an agreement on a monthly payment amount.

Each month, you’ll pay the credit counselling service a single payment and they will pay your creditors with that money. Some services take a small administrative fee from that amount.

How will credit counseling impact my credit rating?

While credit counselling does show up on your credit report, it doesn’t create as negative of an impact as a revolving bad debt or constant late payments being reported. As long as you’re able to keep making payments on time each month, your debts will shrink and you can get back on your financial feet.

Of course you’re not going to look to obtain new credit while you’re in a debt repayment plan with a credit counsellor and when all is said and done, you should be debt-free.

ClearupmyDebtNow.com has a national group of Credit Counseling firms standing by to assist you. Fill out our form today to receive free information on how this program may work for you.

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