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Best Credit Counseling

Bad credit? No Credit? A credit counselor can help you work on your credit score and credit report. You want to get the best credit counseling available. Keep reading to learn about finding the best credit counseling and if you really need credit counseling.

Many people find, at some point, that they are having trouble making their debt payments. In such cases, it be helpful to to turn to someone professional in order to help alleviate some of the problems. Indeed, the right kind of help can be priceless in terms of getting you back on your feet. But you need to be careful. The credit counseling industry is worth close to $7 billion -- and rising. There are plenty of credit counseling services that do not offer the most efficient debt management solution. The worst are credit counselors that are no such thing; these unscrupulous scammers will simply take your money and disappear. You need to be careful.

Finding the best credit counseling

One of the most reputable organizations for credit counseling is the National Foundation for Credit Counseling. This body has a list of approved credit counselors is most areas. Officially, they are known as Consumer Credit Counseling Services. If you look for the official designation, you are more likely to get the best credit counseling. If you are concerned about a counselor, make sure that you double check with the National Foundation for Credit Counseling.

Lexington Law is a well known credit repair service that can provide you with counseling and help you determine the best way for you to fix and/or build your credit.

Credit counselors help you mainly by negotiating lower interest rates with your creditors. They also help you set up payment plans with your creditors -- payment plans that are manageable. Often, you can find credit counseling services that actually make payments on your behalf. You send one larger payment, and the credit counseling service takes care of making your credit payments. The lower rates mean that more of your payments are going to principal, helping you get rid of debt faster. It is also worth noting that these services can make your payments more manageable, since credit counselors can set you up on a payment plan that you can afford. Eventually, as you pay down debt and make your payments on time, your credit score should increase.

Understand that credit counseling is not the same as debt negotiation. In debt negotiation, you stop making your payments while the company negotiates a lower total payoff amount with your creditors. This can be very damaging to your credit score. You should make sure that you are not dealing with debt negotiation in these cases.

Do you really need credit counseling?

Credit counseling has become so lucrative that some credit counseling agencies may try to court those who are not in real trouble. They target people who may be upset about their interest rates or have some other problem. If you are not having problems with meeting your obligations, using credit counseling can damage your credit score. You can actually call the credit card company yourself to ask for a lower interest rate. Here are some of the indications that you might need credit counseling:

  • You can't seem to reduce your debt, no matter how hard you try.
  • You find it difficult to make all of your minimum payments.
  • You are regularly late in making payments on your bills.
  • Creditors and collection agencies are calling you.
  • You have been unable to work out a payment plan or lower interest with your creditors.
  • You feel overwhelmed by your debt and do not know where to start.

If you feel as though credit counseling can benefit you, make sure you shop around. Check with the Better Business Bureau and the National Foundation for Credit Counseling. Also, find out what sort of fees you will be paying, and whether there are up front costs for your credit counseling services. It is important that you do your homework before committing to a program. You will be giving these people your money, as well as your personal information.

Finally, remember that if it sounds too good to be true, there is probably an issue.

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