Drowning in a sea of debt? Before you end up under water, you must try your level best to get hold of a life preserver. The life preserver in several cases is the right credit counselor or firm. Seeking credit counseling is a smart move if you want to get your finances back on track. So what is credit counseling and who can avail it? What does it do? To guide you through the choppy waters of your debts, we have picked the basics of credit counseling and give them to you here in today’s article.
Understand the basics of credit counseling
If you are hearing the term, credit counseling then you must check out https://doylesalewski.ca, which contains a simple guide that helps you understand the nuances of credit counseling. According to a survey taken by creditworthy.com, the majority of people who managed to clear off their debts were able to do so with the help of a credit counselor.
With the help of your credit counselor, you can enroll in a debt management plan. These plans help you clear off all your debts and emerge debt free with regular payments to all your creditors. The biggest advantage of a debt management plan is that while you are on the plan, you credit card companies won’t report you as delinquent, even though you have a hefty debt. Though there is some cost associated with a debt management plan, it is minimal when compared to huge unpaid debts.
Do your homework
Check out the rating of credit counseling companies before you choose one. Also, ensure that the companies have the right accreditation. Also, it pays to check out whether any complaints have been registered against the company. If you find the company failing to meet any of these criterion, then stay clear of such companies.
Credit Counseling doesn’t cost you a Penny
Most credit counseling companies provide their initial consultation for free. If a counselor or firm demands that you pay the money upfront or asks for all your personal information on the first meeting, then be wary of such firms.
Take a Hard-Look at your Finances
Before you meet up with your credit counselor you have to gather up all your bills, expenses and income. This information is essential for your counselor to chart out solutions for your debt. You must make sure that you don’t skip any of your debts however small they may be.
Your Credit Counselor must make you feel comfortable
Just because you have chosen a counselor, it doesn’t mean that you have no other option. If you aren’t comfortable with your counselor, you can ask for another counselor in the firm or you can even switch firms. It’s difficult to reveal all the details of one’s personal finances to another person. So make sure that the person you are working with puts you at ease.
Above all, control your Spending
All the time and effort you put into clearing your debts will be of no use, if you return back to your old spendthrift ways.
Always remember that while it’s easy to pile on debts, it’s very difficult to get rid of them completely.