subject: Learning About Credit Counseling As A Debt Relief Option [print this page] More people are turning to credit counseling when they cannot find a way out to their debts or they can't manage their finances. This is only one of the few ways available for you to get help in facing your money problem. Credit analysts or specialist can give a range of plans for managing debts and provide effective educational financial advices. If you follow these advices by heart and you are committed to do what you have to, you will be relieved from your unpaid dues.
Debt relief solutions which are non profit oriented is one of the best help you can seek for money matters. The two common debt relief method used are debt settlement and debt consolidation but with many financial cases a lot of people are facing, it is up with the individual to decide which settlement program to choose that they feel comfortable with.
Credit counseling involves several steps and the following will give you an overview what to undertake in case you choose to go through this type of credit relief solution.
The credit counseling team will sum up your monthly income and monthly expenses to help you determine where to limit your spending and how to plan it. If the problem is complex and there is no way to resolve it, the debt counseling team will advise you to take a debt management course.
After assessment of the consumer's account, they will be asked to deposit a certain amount as their monthly payment based on the amount of their debts. Counselors will also ask consumers to close their credit card accounts and other credit accounts if the consumer agrees with the conditions specified by the counselors.
The counseling team will reach out to the creditors through proposal asking them to lower interest rates, however the acceptance of the offer is upon the creditor's discretion and they cannot be forced to accept the proposal.
The consumer then makes monthly payment to the counseling institution and they will be distributing the collected money to each creditor and they only keep a very low percentage as their service fee.
It will take 4 to 5 years normally for the counseling program to complete. It takes a hard work and commitment to go through and make it with this type of debt settlement program.
It's a good idea to consider cheaper solutions to aid your financial problem especially if one finds it hard to pay their dues regularly.
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