Credit Counseling ? Signs That You May Need Help - Debt-Relief

Credit Counseling - Signs That You May Need Help

Credit counseling is a viable option for those who are feeling the stress
of being overwhelmed by debt. Credit counseling primarily offers
assistance with working out a credit and debt repayment plan for an
individual to gain control of their finances by creating a structured
budget for an individual to follow. Credit counseling offers an individual
the option to repay their debts, if needed, through a credit counseling
debt repayment program. This is where the credit counseling organization
becomes in contact with an individuals creditor to ask for lowered
interest rates and for the credit provider to stop any late and over the
limit fees that may be attached to a particular credit card. Credit
counseling organizations that provide a no charge credit and money
management education program for an individual typically have the
individual consumer's best interest on their mind.

Credit counseling may be needed if the following signs are present:

1. Are you using more and more of your income to pay your debts?
This becomes a problem if you are at the point where the money going out
is less than or nearly less than the money coming in. Credit counseling
would be a wise choice. Speaking to a credit counseling organization at
this point can help because in a counseling session you may find that by
sticking to a sound budget you may be able to avoid additional help. The
best part is the counseling sessions should be at no charge, make sure of
that before speaking to an agency.

2. Do you make only the minimum payments due on your loans and credit
cards each month?
Look at your budget, that is review what dollars are coming in and how
those dollars are going out. You may find that by tweaking your budget you
may be able to avoid credit counseling by implementing a plan of savings
through following your own plan. This should allow you to free up more
money to be more aggressive in repaying your debt. Credit counseling may
be needed if you have reviewed your budget and can't find additional funds
to pay more than the minimum amounts to your credit cards. Paying only the
minimum to your credit cards will only prolong the length of time needed
to repay your debt. Some credit cards may charge such a high interest rate
that it could take years upon years to pay off with minimum payments.

3. Are you near, at, or over the credit limit on your credit cards?
Once a credit card is nearing it's available balance or even worse if the
credit card is over it's credit limit it is time to take aggressive action
to pay down the balance. If this is a situation you are finding yourself
in try finding additional dollars to bring your balances down. It is
recommended that when doping this you do not open another credit account
or take a consolidation loan to repay these accounts as more often than
not taking a loan to pay a loan will result in more debt being owed. If
you can't find the dollars to apply towards the credit cards try speaking
to a credit counseling organization. They may be able to lay out a plan
for you to repay the debt on your own, or through their own credit
counseling services.

4. Are you paying your bills with money intended for other things?
If you find yourself "robbing Peter to pay Paul" with your credit cards it
may be acceptable if you are replacing the dollars that are going to
unnecessary items such as cable TV., cell phone payments?etc. Just as long
as those accounts have been paid and you are not accruing any more fees
from them. However if you find yourself using dollars that are intended
for necessary items such as a car payment, a house loan, food, etc. then
you are most likely in a situation where credit counseling is an option
you may need to look into. Look at speaking to a certified credit
counselor that will offer a solution to your financial needs. Getting out
of the red is very important, the sooner you take action the better.

5. Are you borrowing money or using credit cards to pay for things you
used to buy with cash?
This can be very problematic when you are utilizing your credit to
purchase things like groceries, fuel or other disposable goods. If you are
currently in the act of doing this review your finances to determine if
you can avoid making these purchases with your credit. If this can't be
avoided try speaking to a credit counseling organization. They should be
able to give you the tools needed to avoid this costly practice.

6. Do you often pay your bills late?
There are a few reasons on why an individual may frequently pay their
bills after the due date. One of the main reasons is that there isn't a
budget in place to follow, therefore rendering the payments of the debt to
the instance of when a person gets paid. If a payment is due on the 25th
and a individual is paid on the 30th this typically develops into a past
due payment. This is due to the fact that the majority of people live from
one paycheck to the next. Creating a savings account and a budget plan
will resolve this issue for the most part. Paying bills late on a regular
basis may also be attributed to an individual being upside down with their
debts, meaning that there is more money going out regularly than coming
in. Once this point is reached it may be time to speak to a credit
counseling organization. It is urgent to seek help at this point in order
to order to avoid long lasting damage to your credit.

Regardless of your situation it is important to seek help when feeling the
pinch of being upside down or behind with your finances. Taking measures
early will result in less dollars that go out in the long run. Taking
action early will also result in a lesser need of bankruptcy which has
long lasting negative impact on your credit worthiness.

Rick Munster lives in Boise, ID where he works as the Media Planner for
Debt Reduction Services, http://www.debtreductionservices.com. When he's
not busy working with the media he enjoys writing, or getting away to do a
little fishing.

MORE RESOURCES:
RELATED ARTICLES
New Bankruptcy Law - Targeting the Wrong People?
Last April, President Bush enthusiastically signed into law the
oddly-named Bankruptcy Abuse and Consumer Protection Act. This bill,
representing the biggest overhaul of bankruptcy law in twenty-five years,
was written in order to discourage "bankruptcy of convenience.
Dont Drown Your Debts, Manage Them!
Are you among the millions of people who have found themselves unable to
make even the minimum payments on credit cards and other unsecured debts?
If so, there is relief in sight. It is no longer necessary to keep paying
constantly but never really make any progress towards reducing or
eliminating your debts.
Bankruptcy Reform
There are some new bankruptcy laws going into effect before long and many
think they are much needed. Of course, that depends on which side of the
bankruptcy you are a part of.
Debt Settlement
What is debt settlement?Debt Settlement is a process to settle your debts
with the creditors. With debt settlement, a third party or you yourself
negotiate with your creditors to come up with a reduced debt that you
agree to pay.
Bankruptcy - Your Fresh Start
Most American consumers are living too close to the edge. They are
carrying too much credit card and mortgage debt and have too little in the
way of savings.
Debt Elimination 1
If you have multiple debts, you may well be wishing you had a debt
elimination wand to wave and make all the debts disappear. You would
probably wish even harder for that magic wand if you were falling behind
with, or at least struggling hard to keep up with, the monthly payments on
those debts.
Get Debt Free
If you once have been caught in the debt trap, how do you come out of it
and be debt free? We are different and each of us has our own lifestyle
and our own financial state, so the way to debt elimination is different
from person to person. One plan will be good for some, but not for others.
Is Debt Negotiation Bad?
Educating yourself about the ins and outs of debt negotiation is a good
first step. Please note that the term 'debt negotiation' is also known as
debt arbitration or debt settlement.
Bankruptcy - Is It The Right Choice For You?
Bankruptcy is one of the tougher choices we as adults face in today's
society where it is the norm to be in debt, albeit some more so than
others. Credit card offers materialize whether you are looking for credit
or not.
Is Filing for Bankruptcy an Option for You?
Bankruptcy laws give debtors a way to resolve debt by dividing their
assets among their various creditors and in some cases will allow debtors
to be freed of outstanding debts that cannot be paid, even after the
division of assets. For individuals who find themselves unable to pay
their debts, bankruptcy can be a viable option.
Life After Debt - Strategies for Dealing with Problem Debt
Honorably and ethically rid yourself of burdensome debts using the little
known Negotiation Strategy, without having to experience the loss of
control and privacy associated with filing for bankruptcy, consolidation,
or credit counseling.The inability to reduce debt and saving money are the
two biggest obstacles preventing Americans from living financially sound
lives.
Debt Elimination
If you're reading this article right now I'm sure that you are looking for
a debt elimination system that will help you get out from under you
personal mountain of debt. Hopefully you're not looking for the magic pill
that will suddenly dissolve your debt problem.
Is Independence Overrated?
Happy Independence Day from The Money Motivator!If you don't celebrate
"The 4th of July" like we do in the United States, today still presents
you with an awesome opportunity to examine your independence.Independence
means the quality or state of being dependent.
How to Deal with Bill Collectors
So you've screwed up. You're drowning in debt.
Is My Credit Card Debt A Problem?
For most Americans, credit card debt is a dangerous and growing problem.
The average American family has more than $8000.
Your Secret Weapon... A Budget
For many, the word 'budget' immediately sends shivers down the spine. Why
in the world would anyone need or want to budget their money?First off,
budgeting your money does NOT mean you are poor, or are in need of
financial assistance.
Bankruptcy - Bankruptcy Myths
Bankruptcy has long been a big question mark in the eyes of the consumer.
After all they don't teach us about bankruptcy in school.
Learn How to Get out of Debt
Debt is becoming number one problem in the United States Today. The
average American family has at least $8,000 in credit card debt and most
college students who just graduate from college have $3,000 to $5,000
credit card debt in their first year after college.
Credit Card Debt Freedom is Possible
Credit card debt have you drowning financially? You're not alone. The
average American household carries $9,205 in credit card debt, according
to CardWeb, an online industry tracker.
Free Quick and Easy Money Saving Tips - Part 2
Although many consumers would argue differently saving money doesn't have
to be difficult. In fact by making just a few changes in your normal
lifestyle you can find ways to free up extra cash that can be put to
better use in a savings account or an investment account.

--
http://venteinternet.blogspot.com |
http://pusatinternetmarketing.blogspot.com |
http://webandblogdesign.blogspot.com