Credit Counseling-Part 2

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I believe consumer credit counseling is a good way to pay down your debt. Right now there are a lot of different agencies that offer nonprofit credit counseling. You must be sure that the credit counseling company that you select is reputable and secondly, many people confuse nonprofit with no charge and that is not the case. Your credit counseling company may not have to make a profit, but they do have to pay the people that work there.

I did my credit counseling online and I almost wish I had done it face-to-face. I think I would have to been more accountable. I had checked into face-to-face credit counseling and they required me to make a budget (something that was not required online). Don’t get me wrong, the tools are all there, but nobody asks to see how you have used them or if you have used them.

The other thing that is a no-no is opening new credit. I didn’t follow that rule either and it was actually easy to get more credit. But, debt counseling agencies have that rule for a reason and it is not so that you can keep charging. If you have not made late payments, prior to enrolling in credit counseling, your credit record will not be impacted significantly. Chances are that it will increase as your debt decreases. There are actually credit card companies that will extend you credit after you complete the program. Some creditors look on the situation as you taking the appropriate steps to correct a problem.

If you think you are in the situation where credit counseling will help you, do it before things get out of control. The sooner the better.

Tags: consumer credit counseling, credit counseling, debt counseling, debt management program, debt management