Credit counseling is a professional counseling service that helps defaulters to repay back their debts. It also educates consumers about budgeting, credit and financial management.
With proper credit counseling:
✔ You can lower your monthly payments
✔ Reduce interest rates.
✔ Waive off late fees
✔ Eliminate calls from collection agencies
✔ Avoid bankruptcy
✔ Have one consolidated payment
✔ Become debt free
How does it work?
Once a defaulter approaches a credit counselor, he or she will examine your overall financial condition. Here is the list of items that are taken into account while assessing a person's financial status.
✔ Total amount of debt
✔ Total monthly income
✔ Minimum payments for credit cards
✔ Rates of interest on the amount of loan taken
✔Other financial obligation like child support,medical expense,insurance premium,utility and other bills.
After evaluating these aspects of your financial status,the counselor prepares a repayment plan. This plan should be in sync with your budget. Then the counselor sends the repayment plan to each of the creditors. After the creditors agree with the repayment as proposed by your counselor, you start making payments to the credit counseling agency. After you have made the payment, the credit counselor then distributes the payment in accordance with the repayment plan.
With proper credit counseling:✔ You can lower your monthly payments
✔ Reduce interest rates.
✔ Waive off late fees
✔ Eliminate calls from collection agencies
✔ Avoid bankruptcy
✔ Have one consolidated payment
✔ Become debt free
How does it work?
Once a defaulter approaches a credit counselor, he or she will examine your overall financial condition. Here is the list of items that are taken into account while assessing a person's financial status.
✔ Total amount of debt
✔ Total monthly income
✔ Minimum payments for credit cards
✔ Rates of interest on the amount of loan taken
✔Other financial obligation like child support,medical expense,insurance premium,utility and other bills.
After evaluating these aspects of your financial status,the counselor prepares a repayment plan. This plan should be in sync with your budget. Then the counselor sends the repayment plan to each of the creditors. After the creditors agree with the repayment as proposed by your counselor, you start making payments to the credit counseling agency. After you have made the payment, the credit counselor then distributes the payment in accordance with the repayment plan.
