Consumer Credit Counseling And Its Benefits For The Person In Debt

Oct. 25, 2012 - PRLog -- If you are falling behind your monthly payment dues, then you might probably need a good non profit credit counseling agency to help you in the proper management of your finances or lack of it.

Get Started With Credit Counseling:

http://www.debtrelief.bz/

Getting help through consumer credit counseling will put your financial status on a debt management program. Though you might think this will give you a bad credit reputation, then you'd better think again. This is actually better than declaring bankruptcy, though the difference is very little.

If you are in a debt management program you cannot also apply for another loan. That will be better because you will never be able to pay another loan anyway.

In a debt consolidation advice program, a counselor will work with you in deciding on how much you can really pay for your monthly bills. Your counselor will then get in touch with your creditors to work out a debt management plan that will fit with your capacity to pay. One advantage of this plan is the new payment schedule will often times include a lower interest rate, thus giving you the chance to lower your monthly payments.

Get Started With Credit Counseling:

http://www.debtrelief.bz/credit_card_debt_relief_counseli...

In consumer debt credit consolidation, your debts are being consolidated in one file and your counselor will handle all the dealings with your creditor. You will not have to prepare separate checks for each of your creditors, you juts need to give the total amount of your monthly payments to your counselors and your counselor will pay off your creditors.

One important point to watch out for in bill consolidation is how your credit accounts are being reported on your credit sheets. Though you are making your monthly payments on time, you are not actually paying as was originally planned so, this might give a negative impact your credit score.

There are also some financial institutions that may include comments on your credit statement that specify that you are in a debt management program. And you should be aware that as long as you are under this program you will not be able to apply for a credit card or use your existing one.

In the long run this could be good for you as you wouldn't want to add the hassles of paying credit card dues to your monthly payment dues. Not being able to use a credit card is not a bad thing, this will teach you to manage your cash better so that when the time comes that you have somehow managed to clear all your debts and you are able o apply for a credit card; you will have the knowledge to use them properly and responsibly.

National Debt Relief Program offers a free debt analysis which can be taken advantage of at their website:

http://debtrelief.bz/