Are you falling behind on your bills due to loss of job or unforeseen circumstances? Credit and debt counseling can help you break free of robbing Peter to pay Paul.
But how do you get help with your debt?
You can find a credit and debt counselor in your telephone directory or by an Internet search. Check with the Better Business Bureau ( www.bbb.org) to see if any complaints have been filed with the company you have selected. When you locate a credit and debt counseling service in your area, call to make an appointment. Seek out not-for-profit credit and debt counseling, such as the Consumer Credit Agency, which charges no fee. This organization charges the companies that you owe to assist them with unpaid debt.
A credit and debt counseling worker will work one on one with you to find the help you need.
Repayment plans usually only cover unsecured debt (store credit cards, your doctor or dentist, etc.) You may or may not wish to include secured debt (your monthly
mortgage) in your repayment plan. You will need to bring copies of all the bills you would like to have on the repayment plan.
Your counselor will determine a monthly payment agreeable to both you and your creditors. Sometimes additional fees, such as late charges, can be waived. In other situations, some creditors may offer a zero interest pay back option.
Here some additional facts that you should be aware of:
A debt repayment plan does not eliminate your credit history. Under the Fair Credit Reporting Act, accurate information about your credit history can stay on file for seven years. Your repayment account may be recorded by certain creditors. That doesn’t necessarily mean that you can kiss your good credit wishes good-bye. Paying your debts on time will establish a new pattern to your history, and will enable you to obtain credit in the future.
Once you have a repayment plan established, consider cutting your budget to prevent future debt worries. First, review your checkbook register to see where the money went. Make a list of all bills that you owe. Be sure to incorporate your new repayment plan into the list. Categorize your checkbook entries into the other major areas of your life, such as groceries, entertainment, savings, lunches, etc. Determine how you could save money on these items. For example: use coupons and be aware of grocery store specials. Buying items in bulk can save you money on cost per pound. The average American spends at least $5-$6 a day for lunch. If you have two family members in the work force, do the math, if two people buy lunch every day, 5 days a week, you would be spending $60 a week for lunch, or $240 a month. Renting movies can be cheaper than a night at the theater when you consider the cost of tickets, popcorn, drinks, and other snacks.
With the help of your credit and debt counselor, you can learn other ways to save money and maintain a good credit standard.
By R. S. Wagner