8 Things to Know About Credit Counselling
When you are short of money, but you wanted to buy something, you apply for credit cards and use them to obtain it. But when credits takeover your life, it can be a mess. This is where consumer credit counselling can help you. They will help you overcome your fears of being buried in debt, and they will give you the inside scoop on what you need to know about working with credit counselors. But first, let us know more about credit counselling and what can they do for you.
Here is a list of things you should know about credit counselling:
1. You must understand credit counselling
First of all, credit counselling helps you lift the burden of a credit card debt. You can enter a debt management plan so you can work with your counselor to resolve your financial problems on your own. There are reliable best management companies that can consolidate your credit card payments and reduce the cards interest rates, making financial obligations easier to tackle.
2. You don’t need to pay for credit counselling
Agencies that are affiliated with foundations on credit counseling provides services with no cost, except for debt management fees. But in some cases, some credit counseling organizations charge high fees, and they may hide it while some urge their clients to make voluntary contributions which can cause more debts.
3. Be suspicious of for-profit debt settlement business
There are for-profit businesses that essentially pose as a credit counseling specialist, but all they want you to do is to cough up cash for their debt settlement service. There are companies that promise to erase bad credit, create a new credit identity, or even remove bankruptcies. But beware, most of these companies are scams and should be avoided.
4. Examine your finances
Before going on a confidential session with your credit counselor, gather up your credit card bills, details about your household expenses, and income. These will be used as an information for your credit counselor to figure out solutions to your debt problems.
5. You should feel comfortable with your credit counselor
If there is a counselor assigned to you and you don’t feel at ease with them, you don’t have to remain with them. You can look for a new one. Find a counselor that will make you feel that there’s still hope and give you support. If you are still not satisfied, you can find another credit counseling agency like Doyle Salewski Inc. Firms that will listen to your concerns and provide ways to improve your financial situation.
6. Stick to the plan
Credit counselors can help you get out of your financial hole, but it only works when you follow the plan that your counselor has given to you. If you are given a debt management program, it is more successful with the budget advice that is given by your counselor. Follow their advice and make timely payments so that you are on your road on being debt-free.
7. You need to be patient
You need to devote three to five years to wipe your credit card debt. With Canadian debt counselling services, bankruptcy will stay on your credit record for seven or 10 years depending on the type of bankruptcy.
8. Control your spending
It is easier to get into credit than going out of it. All of these debt counselling services won’t be helpful if you return to your old spending habits. All you need is a realistic process of proper managing credit.
Make sure that the credit counselors that you are working with are all accredited and certified. Their consumer credit services should also be reliable and easy to follow so that you will know what to do in times that you needed help the most.