If you are struggling with credit cards and other unsecured debts and in need of relief, credit counseling is something that may allow you to get much needed debt relief-while regaining control of your finances. Consumer credit counseling has become more and more popular in recent years as credit card companies have extended "easy" high-interest rate revolving credit card offers to countless numbers of consumers who have quickly accepted these offers, then accumulate high credit card charges to the point that balances are unmanageable and debt relief is needed.
Credit Counseling-Debt Relief
If you are faced with debts that have gotten out of control and need to reduce interest rates, lower payments, or have late fees and penalties waived, a debt relief plan through a credit counseling agency may be just what you need to get back on track financially.
To see what debt relief could do for you, and how much you could save, answer a few simple questions online to begin your free debt relief savings quote at no obligation.
Types of Credit Counseling Services
While the credit and banking crisis of recent years in Texas and nationwide has greatly reduced the number of these easy-credit offers, the damage for many consumers has already been done and credit counseling services, non-profit credit counseling, and christian credit counseling services have all become more and more popular as way to pay off, consolidate, or reduce out-of-control debt to a manageable level.
It is important to note, that regardless of the type of credit counseling service that consumers use, the basic service being provided is quite similar-so the important thing is that you clearly understand the actual debt reduction or debt consolidation benefits provided via debt management plans. Once you clearly understand how much money you are likely to save, and how long your debt reduction program will last, you can then choose a credit counseling company that treats you with respect, has a strong Better Business Bureau (BBB) rating, and a track record of serving debt relief clients with honesty and integrity.
Consolidating Debt with Credit Counseling
Here's how consumer credit counseling agencies in Texas typically work to help consumers pay-off, consolidate, or reduce debts as quickly as possible. The credit counselor will provide a free debt relief consultation or analysis for consumers, either in person or over the phone. In the initial meeting, the credit counselor will ask the individual in debt for a list of unsecured debts, such as credit cards, store cards, gas cards, medical bills, cell phone bills, utilities-basically almost any debt that is not secured by real property, such as a home or car. Once the credit counselor has a good understanding of the individual's debt obligations, they will then access how much money that individual has coming in each month to meet those obligations.
Finally, with the necessary information at hand, the credit counselor can make proposals to each of the creditors requesting that they assist the consumer by reducing interest rates, waiving fees and penalties, lowering payment requirements, and even extending payment terms. Eventually, all creditors who accept these proposals are part of a debt management plan (DMP) that allows the debtor to make one, easier, more manageable payment each month to the credit counseling service who will then distribute those funds to each of the creditors.
Getting Out of Debt Faster
Since credit counseling debt management plans normally require the consumer to stop using credit cards and accumulating new credit cards, individuals, hopefully, are able to get out of debt faster by paying off their debt on a disciplined month-to-month program that is defined and predictable. And, since lower interest rates are normally in effect, more of the payment made each month goes to actually reduce or eliminate the debt. It is a sad fact of life that if people simple pay monthly minimums all of their lives, the true cost of credit is astronomical-often requiring an individual ten or twenty years to get off the debt treadmill. Credit counseling on the other hand through a workable debt management consolidation plan, and a little discipline, can often help a consumer become completely debt in as little as three to five years.
Freedom from Debt
The bottom line: Credit card debt counseling or consolidation is considered to be a very upstanding way to get out of debt or pay off debts at an accelerated rate. Essentially you are saying to the credit card companies, "I am in debt but want to get on a plan where I can pay back what I owe, just at reduced interest rates and a pace that I can afford each month."
If this sounds like a debt relief option you would like to consider, you can get a free debt relief analysis and savings quote at no obligation.