Posts Tagged Credit Counseling
What is the best credit counseling company?
Posted by admin in Personal Finance on February 4, 2011
Mark’s Mine asked:
What is considered by consumers to be the best non for profit credit counseling firm?
Erin
What is considered by consumers to be the best non for profit credit counseling firm?
Erin
How to Use Credit Counseling For Effective Credit Repair
Michael Demarkks asked:
The skill of financial management and budgeting is quite complicated. As with any activity, certain folks are more proficient in this than other people. It is common for everyone to be in debt at some period during their lives. For example, most adults have credit card bills, loans, mortgages, or other financial obligations. If you handle them well, you will be rewarded with an excellent credit score. This will enable you to continue to obtain credit later on. However, if you do not manage successfully, you’ll be hindered with a weak score, effectively depriving you of numerous financial opportunities later on. Improving your record will require you to gradually rebuild your rating. To achieve this goal, it is best to go to a credit counselor for assistance.
Credit counseling is usually provided by non-profit organizations. However, it is important not to mistake them for credit repair companies operating on a for-profit basis. For your own good, it is recommended that you steer away from those. For-profit companies, most notably those that publicize themselves on the internet, have a negative reputation for being nothing more than frauds. Even if this isn’t the case, they probably won’t do anything that you couldn’t have done on your own anyway. For example, they might instruct you to acquire a copy of your credit report and dispute the negative information on it. Even worse, they might encourage something unlawful, such as using another address in order to obtain a “new” rating.
Unlike for-profit companies which have their own financial agenda, non-profit counseling agencies give you advice. Rebuilding your credit rating is a lengthy process that demands a great deal of patience and discipline. You must recognize this so you don’t try to take the easy way out or you will only hurt yourself in the end. Instead of taking the seemingly more convenient path, a counselor will assist you with making tough decisions and long term plans so you will be able to improve your credit effectively.
Nearly all high-quality counseling organizations offer resources such as financial advice, classes, and educational materials. Counselors use their expertise to teach you how to make a budget plan and stay with it, which greatly improves your credit record in the long run. Additionally, they may also provide individualized counseling sessions tailored to your needs. These sessions allow you to carefully scrutinize your choices and learn to make smart financial choices based on your own particular circumstances.
Unlike credit counseling organizations which provide individualized services, credit repair companies simply prescribe an impersonal, one-size-fits-all formula for every customer. Any company promising something like that without even bothering to learn anything about your individual situation is deceitful and does not have your best interests in mind. Legitimate credit counselors deliver the individualized services that for-profit companies try to get out of.
The best advantage of choosing a credit counseling agency rather than a repair company is that your results will be longer-term. Instead of paying for a quick fix that’s devoid of any educational meaning, you’ll gain knowledge and learn useful financial skills such as effective budget management and smarter spending habits that you will be able to use for the rest of your life.
Warren
The skill of financial management and budgeting is quite complicated. As with any activity, certain folks are more proficient in this than other people. It is common for everyone to be in debt at some period during their lives. For example, most adults have credit card bills, loans, mortgages, or other financial obligations. If you handle them well, you will be rewarded with an excellent credit score. This will enable you to continue to obtain credit later on. However, if you do not manage successfully, you’ll be hindered with a weak score, effectively depriving you of numerous financial opportunities later on. Improving your record will require you to gradually rebuild your rating. To achieve this goal, it is best to go to a credit counselor for assistance.
Credit counseling is usually provided by non-profit organizations. However, it is important not to mistake them for credit repair companies operating on a for-profit basis. For your own good, it is recommended that you steer away from those. For-profit companies, most notably those that publicize themselves on the internet, have a negative reputation for being nothing more than frauds. Even if this isn’t the case, they probably won’t do anything that you couldn’t have done on your own anyway. For example, they might instruct you to acquire a copy of your credit report and dispute the negative information on it. Even worse, they might encourage something unlawful, such as using another address in order to obtain a “new” rating.
Unlike for-profit companies which have their own financial agenda, non-profit counseling agencies give you advice. Rebuilding your credit rating is a lengthy process that demands a great deal of patience and discipline. You must recognize this so you don’t try to take the easy way out or you will only hurt yourself in the end. Instead of taking the seemingly more convenient path, a counselor will assist you with making tough decisions and long term plans so you will be able to improve your credit effectively.
Nearly all high-quality counseling organizations offer resources such as financial advice, classes, and educational materials. Counselors use their expertise to teach you how to make a budget plan and stay with it, which greatly improves your credit record in the long run. Additionally, they may also provide individualized counseling sessions tailored to your needs. These sessions allow you to carefully scrutinize your choices and learn to make smart financial choices based on your own particular circumstances.
Unlike credit counseling organizations which provide individualized services, credit repair companies simply prescribe an impersonal, one-size-fits-all formula for every customer. Any company promising something like that without even bothering to learn anything about your individual situation is deceitful and does not have your best interests in mind. Legitimate credit counselors deliver the individualized services that for-profit companies try to get out of.
The best advantage of choosing a credit counseling agency rather than a repair company is that your results will be longer-term. Instead of paying for a quick fix that’s devoid of any educational meaning, you’ll gain knowledge and learn useful financial skills such as effective budget management and smarter spending habits that you will be able to use for the rest of your life.
Warren
Credit Counseling – Effect on Credit Score
Seamus McKenzie asked:
With the financial downturn, more and more people are seeking out help when it comes to managing their finances and paying their bills. One option that has helped numerous people is credit counseling. Credit counseling can be useful to help individuals and couples sort out their finances and set up a workable budget. Credit counselors are also available to assist individuals in negotiating with current creditors for lower interest rates, reductions in fees and even to settle debt.
Some people are afraid to seek out credit counseling assistance because they are worried that it will affect their credit score. This however, is not necessarily the case. Receiving the counseling in and of itself does not affect your credit. It is true that most people who enter into credit counseling do see a drop in their credit score. This can be for various reasons.
First, when people seek out credit counseling they usually do so because they have found themselves unable to pay their bills. In these circumstances it is almost always the case that payments have already been missed and that the individual has delinquent accounts. The credit counseling does not affect their credit score but the delinquent accounts certainly do affect it.
Many times after individuals have had a credit counseling appointment, they will enter into a debt re-payment plan. These plans are usually consolidated debt lumped into one monthly payment. Often they have negotiated interest rates.These plans generally do not affect your credit score, however other types of negotiated payments can.
If the credit counselor was able to settle some of your debt, another words gotten the debtor of your accounts to agree to take less than what is owed, this will impact your credit score. The creditor will most likely report to the credit agencies that your debt was settled for less than what was owed or not paid as agreed. When this happens you will see a decrease in your credit score, due to the settled debt, not the debt counseling.
Keep in mind that entering into one of these programs, rather than letting your debts continue to go unpaid or delinquent is a wise choice. While they will affect your credit score, the impact is much less than having delinquent accounts. As long as you make all of your payments and do not get yourself into more debt, your credit score will begin to climb again.
Leonard
With the financial downturn, more and more people are seeking out help when it comes to managing their finances and paying their bills. One option that has helped numerous people is credit counseling. Credit counseling can be useful to help individuals and couples sort out their finances and set up a workable budget. Credit counselors are also available to assist individuals in negotiating with current creditors for lower interest rates, reductions in fees and even to settle debt.
Some people are afraid to seek out credit counseling assistance because they are worried that it will affect their credit score. This however, is not necessarily the case. Receiving the counseling in and of itself does not affect your credit. It is true that most people who enter into credit counseling do see a drop in their credit score. This can be for various reasons.
First, when people seek out credit counseling they usually do so because they have found themselves unable to pay their bills. In these circumstances it is almost always the case that payments have already been missed and that the individual has delinquent accounts. The credit counseling does not affect their credit score but the delinquent accounts certainly do affect it.
Many times after individuals have had a credit counseling appointment, they will enter into a debt re-payment plan. These plans are usually consolidated debt lumped into one monthly payment. Often they have negotiated interest rates.These plans generally do not affect your credit score, however other types of negotiated payments can.
If the credit counselor was able to settle some of your debt, another words gotten the debtor of your accounts to agree to take less than what is owed, this will impact your credit score. The creditor will most likely report to the credit agencies that your debt was settled for less than what was owed or not paid as agreed. When this happens you will see a decrease in your credit score, due to the settled debt, not the debt counseling.
Keep in mind that entering into one of these programs, rather than letting your debts continue to go unpaid or delinquent is a wise choice. While they will affect your credit score, the impact is much less than having delinquent accounts. As long as you make all of your payments and do not get yourself into more debt, your credit score will begin to climb again.
Leonard
When you want credit counseling who can help you?What company does this?
Posted by admin in Personal Finance on January 20, 2011
Credit Counseling – Do Debt Settlement Companies Honestly Help Consumers?
Matt Rayan asked:
In this century, many people want to use credit cards for shopping and paying bills but they fall in great difficulty when they cannot afford high amount of debts, which they have withdrawn from their credit cards. The rich people, who have high status, can easily pay their credit card amounts but those people, who are not rich, cannot pay their amount of debts. So, they have to search for the ways, from which they can get relieve from their outstanding amount of debts. Thus, many credit cards settlement companies are available for all the credit card debtors.
In these days, some settlement companies are offering their best services such as credit counseling, to all those debtors who have large amount of debts. These companies are specially working to give relieve in the outstanding amount of debts. But, the point is that do the debt settlement companies honestly help the consumers. We have a perfect answer that if the debt Settlement Company is well established, then it will provide the best services to all the people. You have to be sure while choosing this company that the settlement company. The reliable company provides full information and all contact details because if they do not provide all the necessary things, then it might be a fraud company. Beware of these types of companies because these companies only want money from all debtors. This act of these companies destruct the economical and personal life of the people who want to get relieve from their high amount of debts. These settlement companies do not help the consumers honestly. But those companies, who are popular and well-known, help all the consumers to eliminate their high amount of debts.
Credit counseling is the best service which is given by the credit settlement company. In this process, many professional people give advice to the debtors like how to choose any honest company and how to take the services of reduction on in the debt amount. In credit counseling, the debtors can get benefits in their debts because the credit Settlement Companies really help the consumers by giving reductions in the debtor’s whole amount.
If you are also suffering from the credit card debts and you want to get relieve, then you should avail the service of the credit counseling because some settlement companies truly help those consumers who under huge amount of debts.
Angela
In this century, many people want to use credit cards for shopping and paying bills but they fall in great difficulty when they cannot afford high amount of debts, which they have withdrawn from their credit cards. The rich people, who have high status, can easily pay their credit card amounts but those people, who are not rich, cannot pay their amount of debts. So, they have to search for the ways, from which they can get relieve from their outstanding amount of debts. Thus, many credit cards settlement companies are available for all the credit card debtors.
In these days, some settlement companies are offering their best services such as credit counseling, to all those debtors who have large amount of debts. These companies are specially working to give relieve in the outstanding amount of debts. But, the point is that do the debt settlement companies honestly help the consumers. We have a perfect answer that if the debt Settlement Company is well established, then it will provide the best services to all the people. You have to be sure while choosing this company that the settlement company. The reliable company provides full information and all contact details because if they do not provide all the necessary things, then it might be a fraud company. Beware of these types of companies because these companies only want money from all debtors. This act of these companies destruct the economical and personal life of the people who want to get relieve from their high amount of debts. These settlement companies do not help the consumers honestly. But those companies, who are popular and well-known, help all the consumers to eliminate their high amount of debts.
Credit counseling is the best service which is given by the credit settlement company. In this process, many professional people give advice to the debtors like how to choose any honest company and how to take the services of reduction on in the debt amount. In credit counseling, the debtors can get benefits in their debts because the credit Settlement Companies really help the consumers by giving reductions in the debtor’s whole amount.
If you are also suffering from the credit card debts and you want to get relieve, then you should avail the service of the credit counseling because some settlement companies truly help those consumers who under huge amount of debts.
Angela
How can i get a loan while in credit counseling?
Posted by admin in Personal Finance on January 3, 2011
*Wi!df!ow~r* asked:
All of the loan companies I have called say that they can’t do a loan if it shows credit counseling program on my credit report.
Jimmy
All of the loan companies I have called say that they can’t do a loan if it shows credit counseling program on my credit report.
Jimmy
Does Credit Counseling Hurt My Credit Rating?
Jeremy P Stanfords asked:
Counseling Carries No Penalty
For many borrowers, credit counseling is simply a matter of getting good advice. They acquire skills they may never have learned such as how to set up a budget. Many young adults find themselves on their own with few money management skills. Our parents took care of things and we never had to balance a checkbook or calculate the cost of borrowing. A few early mistakes can lead to serious problems later in life.
These borrowers can turn their finances around on their own without negotiating with their creditors or changing their debts. In these cases, credit counseling carries no penalty. Counseling is done in confidence and lenders will never find out their customers have sought help. For this reason consumers should never be afraid to seek counseling.
Debt Changes Have Some Effect on Credit
The next step in credit counseling is negotiation. The counselor may advise the borrower how to discuss debt changes with the lender or, in most cases, will act as an intermediary to help the borrower negotiate a fair settlement. How much the affects a person’s credit depends on how severe the changes are made and how the lender reports it.
Many lenders view credit counseling as a positive step. They are willing to make small changes to a person’s debt without filing a negative report with credit agencies. New government programs exist to help borrowers without penalizing lenders and these can have little or no effect on a person’s credit rating.
Other changes may have more serious effects. Significant changes to a debt may hurt a person’s credit score and personal bankruptcy is a serious black mark on a credit history. However even these changes will have a net positive effect as the consumer gets finances under control and becomes a better borrower in the future.
The Worst Choice is Ignoring the Situation
Debt problems won’t go away. Consumers who keep letting things slide from month to month are just making things worse. Lenders will not give up. Collection agencies can garnish wages or seize personal assets if the debts become bad enough. A repossessed vehicle could prevent a person from getting to work, leading to job loss and more severe debt problems.
Credit counseling is always a positive move. Even if it leads to debt changes that have a small negative effect on a person’s credit score, these negatives are far less than the mounting problems of disregarded debt.
It may feel like you have no choice, but there are many options for struggling consumers. Talk to a credit counselor and find solutions for your debt problems.
Charlotte
Counseling Carries No Penalty
For many borrowers, credit counseling is simply a matter of getting good advice. They acquire skills they may never have learned such as how to set up a budget. Many young adults find themselves on their own with few money management skills. Our parents took care of things and we never had to balance a checkbook or calculate the cost of borrowing. A few early mistakes can lead to serious problems later in life.
These borrowers can turn their finances around on their own without negotiating with their creditors or changing their debts. In these cases, credit counseling carries no penalty. Counseling is done in confidence and lenders will never find out their customers have sought help. For this reason consumers should never be afraid to seek counseling.
Debt Changes Have Some Effect on Credit
The next step in credit counseling is negotiation. The counselor may advise the borrower how to discuss debt changes with the lender or, in most cases, will act as an intermediary to help the borrower negotiate a fair settlement. How much the affects a person’s credit depends on how severe the changes are made and how the lender reports it.
Many lenders view credit counseling as a positive step. They are willing to make small changes to a person’s debt without filing a negative report with credit agencies. New government programs exist to help borrowers without penalizing lenders and these can have little or no effect on a person’s credit rating.
Other changes may have more serious effects. Significant changes to a debt may hurt a person’s credit score and personal bankruptcy is a serious black mark on a credit history. However even these changes will have a net positive effect as the consumer gets finances under control and becomes a better borrower in the future.
The Worst Choice is Ignoring the Situation
Debt problems won’t go away. Consumers who keep letting things slide from month to month are just making things worse. Lenders will not give up. Collection agencies can garnish wages or seize personal assets if the debts become bad enough. A repossessed vehicle could prevent a person from getting to work, leading to job loss and more severe debt problems.
Credit counseling is always a positive move. Even if it leads to debt changes that have a small negative effect on a person’s credit score, these negatives are far less than the mounting problems of disregarded debt.
It may feel like you have no choice, but there are many options for struggling consumers. Talk to a credit counselor and find solutions for your debt problems.
Charlotte
10 Signs You May Need Credit Counseling
Jeremy Zongker asked:
Debt management programs can be of real help for people that discover they cannot face their debts. At first, they will attempt to solve the situation all by themselves by cutting down on spending and keeping a close eye on accounts. If this doesn’t work then it is time to ask for help from a financial expert. The sooner you admit you need help from an expert, the better will be for your future. The best time to seek the advice of an expert is before the appearance of most of the important 10 signs you may need credit counseling. You should already be worried when one or two signs appear. Of course that there are not only 10 signs you may need credit counseling but, these 10, are the most important. When you see more than a few of 10 signs at the same time, know that the situation is bad and getting into a debt management program could be the right solution for you.
There are not a fixed number of signs that can tell you your debts are slowly killing your financial life, but in the following lines we will try to present the most important 10 signs you may need credit counseling. The most important sign is loosing your job or the possibility to loose it. The first thing you think of when you loose a job is how you will pay all your bills. In such a situation it is best not to loose your cool. You may think you just need to start looking for a new job and the bad situation will be solved. In case your next job does not come in the near future, the best thing for your financial situation would be to ask the advice of a credit counselor; even for the most desperate situations he will certainly have a solution. You should also be worried when your credit card balances are increasing while your monthly income is decreasing. This would mean that, in short time, you’ll not be able to pay your monthly minimum payments. This is another sign that you need credit counseling; if paying the minimum amounts required on your accounts is a situation that lasts a short period of time, and then the problem is not that bad. But if the situation repeats itself over and over again, this is a sure sign you may need credit counseling.
When you discover that you have more credit cards then you need, know that this is one of the 10 signs you may need credit counseling. You have more cards then you need because you’re trying to pay an existing card with the cash advances obtained from other new cards. Another situation that could indicate you need the advice of an expert is when you’re constantly charging monthly more than you pay. If this is the first sign of financial trouble many people will try to work it out on their own by working overtime or taking a part time job. As we said before, if the situation is for a short period of time and you manage to get out of trouble all is fine but if it continues for a longer period this is another sign that you may need credit counseling. Also, if you start getting letters or phone calls about late bill payments, you should be worried at once.
These 10 signs you may need credit counseling do not appear all at once; in time, one after the other, they will eventually appear. But it is mostly important to recognize them all, admit you have a problem and ask for help. There are situation in which the signs mentioned before appear at a certain moment but the person in trouble cannot see them or refuses to see them. More than that, people in financial trouble don’t know how much they owe and don’t want to find out. This is another sign that financial counseling is needed. The situation could get worse in case all this financial problems are not made known to the spouse as well. And, sometimes, when trying to hide such a bad situation, people in trouble are using their savings to pay off the monthly bills.
The best advice for people that are experiencing this kind of trouble is to not let all the signs accumulate. When few of them appear and repeat themselves for a longer period of time, wise people should ask for advice from a financial expert that will surely have few options to get them out of debts.
Francisco
Debt management programs can be of real help for people that discover they cannot face their debts. At first, they will attempt to solve the situation all by themselves by cutting down on spending and keeping a close eye on accounts. If this doesn’t work then it is time to ask for help from a financial expert. The sooner you admit you need help from an expert, the better will be for your future. The best time to seek the advice of an expert is before the appearance of most of the important 10 signs you may need credit counseling. You should already be worried when one or two signs appear. Of course that there are not only 10 signs you may need credit counseling but, these 10, are the most important. When you see more than a few of 10 signs at the same time, know that the situation is bad and getting into a debt management program could be the right solution for you.
There are not a fixed number of signs that can tell you your debts are slowly killing your financial life, but in the following lines we will try to present the most important 10 signs you may need credit counseling. The most important sign is loosing your job or the possibility to loose it. The first thing you think of when you loose a job is how you will pay all your bills. In such a situation it is best not to loose your cool. You may think you just need to start looking for a new job and the bad situation will be solved. In case your next job does not come in the near future, the best thing for your financial situation would be to ask the advice of a credit counselor; even for the most desperate situations he will certainly have a solution. You should also be worried when your credit card balances are increasing while your monthly income is decreasing. This would mean that, in short time, you’ll not be able to pay your monthly minimum payments. This is another sign that you need credit counseling; if paying the minimum amounts required on your accounts is a situation that lasts a short period of time, and then the problem is not that bad. But if the situation repeats itself over and over again, this is a sure sign you may need credit counseling.
When you discover that you have more credit cards then you need, know that this is one of the 10 signs you may need credit counseling. You have more cards then you need because you’re trying to pay an existing card with the cash advances obtained from other new cards. Another situation that could indicate you need the advice of an expert is when you’re constantly charging monthly more than you pay. If this is the first sign of financial trouble many people will try to work it out on their own by working overtime or taking a part time job. As we said before, if the situation is for a short period of time and you manage to get out of trouble all is fine but if it continues for a longer period this is another sign that you may need credit counseling. Also, if you start getting letters or phone calls about late bill payments, you should be worried at once.
These 10 signs you may need credit counseling do not appear all at once; in time, one after the other, they will eventually appear. But it is mostly important to recognize them all, admit you have a problem and ask for help. There are situation in which the signs mentioned before appear at a certain moment but the person in trouble cannot see them or refuses to see them. More than that, people in financial trouble don’t know how much they owe and don’t want to find out. This is another sign that financial counseling is needed. The situation could get worse in case all this financial problems are not made known to the spouse as well. And, sometimes, when trying to hide such a bad situation, people in trouble are using their savings to pay off the monthly bills.
The best advice for people that are experiencing this kind of trouble is to not let all the signs accumulate. When few of them appear and repeat themselves for a longer period of time, wise people should ask for advice from a financial expert that will surely have few options to get them out of debts.
Francisco
How will my credit be negatively affected if I use Non-Profit Cons Credit Counseling to help me with 1 Bill?
asked:
Until losing my job I never was late on bills but 1 company (Home Depot) will not work with me on their Extremely High monthly finance charges & extremely High Interest Rates. With the help of the non-profit Cons Credit Counseling Service I will pay it off sooner so in effect won’t that balance out any negative marks that going through them may cause?
Scott
Until losing my job I never was late on bills but 1 company (Home Depot) will not work with me on their Extremely High monthly finance charges & extremely High Interest Rates. With the help of the non-profit Cons Credit Counseling Service I will pay it off sooner so in effect won’t that balance out any negative marks that going through them may cause?
Scott
Credit counseling?
BNW88 asked:
My debt is getting out of control and I need to do something about it. I’m considering giong to a credit counselor but am afraid they are all sheisters. Can anybody recommend a place to research them?
Maria
My debt is getting out of control and I need to do something about it. I’m considering giong to a credit counselor but am afraid they are all sheisters. Can anybody recommend a place to research them?
Maria