Swamped By Bad Credit? Get Help Now!
Unfortunately a few bad apples have given debt counseling a bad name. First of all, do you know what debt counseling is? Do you know who debt counseling is for? In piling up a mountain of debt you probably have made horrible decisions trying to shield yourself from the harassment of perpetual phone calls from debt collectors and in vain attempts to take the debt pressure off.Looking for a quick way out, many people decide to file for bankruptcy or apply for consolidation loans in their efforts to minimize their debt. Neither choice may be the right one for you at this point. But how will you know? If this is an emergency or a chronic sitaution you find yourself in debt counseling may be your answer.
Frankly, the right time for some legitimate debt counseling is now. Why wait? Debt counseling can help you with a logical approach to the management of your current debt. Professional counselors work on an individual basis so that you can create a repayment plan that makes sense in your own situation. The plan is communicated to each of your creditors and each of them will be paid a percentage of the amount of the debt owed over a finite period. A debt counselor also will teach you how to manage debt and how to establish a reasonable budget for you to live with. In other words, you will have a disciplined approach to looking after your own finances and you will learn to control the spending habits that got you in to this mess in the first place.
Rather than taking some of the more radical debt solutions available like bankruptcy, debt counseling will not only deal with discharging existing debt but the good debt counselor will define a complete set of life changes in order to achieve and then maintain your financial stability in the future. Determining whether or not you need debt counseling starts with a complete down to earth appraisal of your current finances. The counselor will show you how to create a budget and how to relate your bills to your income. Part of the work is to prepare a list of what you owe to every creditor including all credit cards as well as the rate of interest you are paying on each. You'll need all the credit card statements you can lay your hands on plus any other debt notices, etc.for both secured (mortgage/home equity) and unsecured (credit card)loans.
Once you have assembled all the data on the current state of your financial affairs, ask yourself these questions:
Do you have many credit cards?
Have you made a habit of applying for cards every time offered?
Heve you then run those same cards up to the their limit?
How many of your cards are near or at limit?
Can you only afford to make the minimum payments on your credit cards each month?
Have you made at least the minimum payments each month?
Have you made any payments over the minimum in recent months?
Do your average bills add up to more than your monthly income?
Have you been frequently late with credit card payments?
Are creditors calling you frequently?
Have you developed a plan for dealing with your debt?
If your savings are nil or very low, your credit card debt is out of line with your income and you are finding it difficult to make payments on time, then yes, you do need debt counseling. Finding the right debt counselor is the next step and that's a subject for another time.
Related Tags: credit cards, debt counseling
Ken Mackenzie is a well known financial consultant whose advice and tips for dealing with bad credit problems can be found at http://www.badcreditovercome.com Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are