Although many measures can be taken by individuals to improve their credit score, renegotiate the terms of their existing debts, and otherwise improve their credit situation, not everyone is capable of doing this themselves. Some people lack either the time or the patience to do this and many others simply lack the knowledge to do so. This is where a credit counseling service can come be helpful.
Waiting until financial trouble is real and taking on additional expenses is impossible before seeking help is not the wisest course of action. It is much better to seek credit counseling as soon as it is clear that a persons debt load has become unmanageable. When people wait until they have missed payments, are already defaulting, or getting calls from collection agencies they have already missed out on some of the options that were available. It is a good idea to seek help and look at different options before finances get too out of hand.
A reliable credit counseling service will study out a clients entire financial situation to begin the process of creating a strategy for them. Services with a good reputation will create a unique strategy that will best utilize the clients resources to make their debt manageable again. Many counseling services will offer pre-designed service packages; debtors should be wary of these, as the package may not fit their particular situation and needs.
A reputable counseling service will sit down and talk with you for free or for a nominal fee. After this initial meeting, the client will be told what the company can do to improve the financial situation, how much the service will cost, and how payment will be made. Since a client has to provide so much private information about the financial life it is vital to choose a credit counseling service very carefully. It is recommended to find a local provider that is suggested by a non-creditor bank and not found online. The online world is full of dishonest people that will take advantage of those in need. Find an established local business with real experts to help your finances.
Since 2005, credit counseling has become a preliminary step to filing for bankruptcy. This change in the law has led credit counseling to become a factor in an individuals credit rating. Although credit counseling is not directly factored into the score, a notice that the person is in credit counseling will be appended to his credit report. This notice may negatively impact the clients ability to receive credit as the lender has no way of knowing if this measure is being taken in advance of filing for bankruptcy or not.
Since there are consequences for using a credit counseling service it should not be used lightly, or by people that are actually able to renegotiate loan terms or repair their own credit. It should be remembered that this is the last step before bankruptcy.
Waiting until financial trouble is real and taking on additional expenses is impossible before seeking help is not the wisest course of action. It is much better to seek credit counseling as soon as it is clear that a persons debt load has become unmanageable. When people wait until they have missed payments, are already defaulting, or getting calls from collection agencies they have already missed out on some of the options that were available. It is a good idea to seek help and look at different options before finances get too out of hand.
A reliable credit counseling service will study out a clients entire financial situation to begin the process of creating a strategy for them. Services with a good reputation will create a unique strategy that will best utilize the clients resources to make their debt manageable again. Many counseling services will offer pre-designed service packages; debtors should be wary of these, as the package may not fit their particular situation and needs.
A reputable counseling service will sit down and talk with you for free or for a nominal fee. After this initial meeting, the client will be told what the company can do to improve the financial situation, how much the service will cost, and how payment will be made. Since a client has to provide so much private information about the financial life it is vital to choose a credit counseling service very carefully. It is recommended to find a local provider that is suggested by a non-creditor bank and not found online. The online world is full of dishonest people that will take advantage of those in need. Find an established local business with real experts to help your finances.
Since 2005, credit counseling has become a preliminary step to filing for bankruptcy. This change in the law has led credit counseling to become a factor in an individuals credit rating. Although credit counseling is not directly factored into the score, a notice that the person is in credit counseling will be appended to his credit report. This notice may negatively impact the clients ability to receive credit as the lender has no way of knowing if this measure is being taken in advance of filing for bankruptcy or not.
Since there are consequences for using a credit counseling service it should not be used lightly, or by people that are actually able to renegotiate loan terms or repair their own credit. It should be remembered that this is the last step before bankruptcy.
About the Author:
Wendy Polisi is the founder of Credit Repair College and Finance the Dream. Finance the Dream is the nations leading provider of Rent to Own Homes,offering homes throughout the United States. For more information on fast credit repair please visit her at Credit Repair College.
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