Credit Counseling-take Charge Of Your Finances

Credit counseling is the process by which consumers are made aware of the consequences that they may face should they mismanage their finances. The main objective of credit counseling is to help out consumers get out of debt through reduced rate of interest and careful budgeting. Rate of interest is reduced by negotiating with the creditors.

Credit counseling is offered by companies as an efficient tool for financial planning. An efficient credit counselor will assess the current financial situation of a debtor and work out for the best possible solution for debt reduction.

The following instances may drive you to opt for credit counseling-
It has been observed in majority of the cases that under the following circumstances, consumers choose a credit counseling session.

A debtor has decided to file for bankruptcy and wants to give it a last try to repair his financial condition.

If a debtor has fallen behind by a couple of payments and is seeking a way to regularize them can opt for credit counseling.

If a debtor has been making regular payments and has not defaulted but fears that a credit crunch may result in near future, may also take advice from a credit counselor.

Fees charged for credit counseling-
Usually, the fees charged by a credit counseling company depend mainly on the income of the consumer. Fees comprise a monthly fees as well as a start up fees. As per industry standards, the fees charged by a credit counseling company cannot exceed 20% of the monthly income of the consumer.

The credit counseling industry is booming-
The credit counseling industry is currently a USD$7 billion industry. Over the years, the industry has grown by leaps and bounds. Earlier, there used to be very few credit counseling companies offering quality services to the people. With increase in the number of the credit counselors, fraudulent activities have also become rampant.

Credit counseling has earned some unfavorable judgment-
Reports have suggested that there are many companies who fly-by-night and leave individuals lamenting. In fact, the FTC or the Federal Trade Commission has received innumerable complaints against such fraudulent companies. These may be regarded as some of the reasons why not all consumers rely on credit counseling. There have been many instances when consumers either had to drop out of credit counseling sessions or were cheated off their money.

About the Author:
Jason Holmes is an author of repute. His works include articles like debt consolidation, debt settlement, debt calculator, credit counseling, debt free, Fingerhut credit and various other topics. He also writes for the Debt Consolidation Care Community.

Article Originally Published On: http://www.articlesnatch.com

Tags: Credit counseling

, credit counselor

Related....

Videos...

Recent Debt-Relief Articles

Five Keys To Understanding The Fair Debt Collection Practices Act By: Sergei Lemberg | May 22nd 2012 - Most people understand that they have consumer rights, but not many understand their rights under the Fair Debt Collection Practices Act. Here are five keys to understanding your rights under the FDCPA.

Fair debt collection practices act

debt collection

fdcpa

Debt Collection Harassment By: TonyVictor | May 22nd 2012 - The debt collection industry has only one goal: to make money. The problem with this mantra is simple when money is the bottom line, companies sometimes act outside the law. As consumer advocates, we see it all the time. That is why there is the ...

debt collector laws

debt collection harassment

Scottish Government Launching New Trust Deed Legislation By: Ian Jamieson | May 15th 2012 - Using the current media on the Greece euro situation getting worse as well as a double dip downturn well on-going, it's feared that we may possibly not be acquiring out from the dirt so fast.

A Historical Perspective On The Debt Crisis By: coleyghenderson | May 14th 2012 - In recent years debt problems taken center stage. As nations have to restructure their debt and gigantic international corporations hang on the verge of collapse, it is becoming increasingly common for individuals to face home foreclosure, an individua ...

individual voluntary arrangement

Thedebtlady.com: Why Don"��t I Have Any Money? By: Jerri Simpson | May 12th 2012 - Why dont I have any money? This is one of the most common questions I hear when Im dealing with consumers who have a lot of credit card debt. They often attribute it to the economy, to the banking debacle, or to that pesky national debt.

Debt Relief Best Method To Deal With Financial Crisis By: Craigz Zimmerman | May 9th 2012 - In order to get an IRS tax relief in United States debtors usually wants to go for Offer in Compromise (OIC). In order to pay less than what they owe, people prefer to avail debt relief services.

tax relief

debt relief

Thedebtlady.com: Never Worry About Money Again! By: Jerri Simpson | May 7th 2012 - Summary:
Do you ever worry about money? Do you worry about what could happen if you buy this or dont pay that, worry about how much its going to cost, or maybe even where its going to come from? Youre not alone.

Become Debt Free By: kevin | May 4th 2012 - Becoming debt free is not a decision that is taken one night and completed the next night. It is a process which takes a lot of time and effort on the part of the person who has the debt and also the people around them as well.

debt

debt free

Debt Collector Threats: Understand The Law By: Sergei Lemberg | Apr 27th 2012 - While some states have debt collection statutes, the most important law you need to know about is the federal Fair Debt Collection Practices Act (FDCPA). The Act outlines tactics and behaviors that are unacceptable when it comes to bill collecting, and ...

Debt collector

debt collection

fdcpa

The Relevance Of Keyman Insurance By: craz5kvbau | Apr 21st 2012 - Key man policies really should be taken out with the consent of the person who will be coated by the key man insurance coverage policy. It shouldn't be observed as a negative, but exhibiting you truly value the contributions the personal can make to th ...

key man insurance

keyman insurance

Comments

Still can't find what you are looking for? Search for it!

Site Navigation: