Is Credit Counseling the Answer to Your Debt Problems?

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<h1>Is Credit Counseling the Answer to Your Debt Problems?</h1><strong> Author: <a href='http://www.articleseen.com/profile_Mr William Hauselberg.aspx'>Mr William Hauselberg</a></strong><br /><p>Like many Americans, you may currently find yourself in debt. Credit cards, student loans, car loans, mortgages and more may have you stressed out each month. Many people even find themselves doing the "bill dance." That is, they are strapped for cash and each month they skip one –or even two bills in order to pay others. This "bill dance" leads to even more stress and even more debt. You may be convinced that you'll never pull yourself out of this endless, vicious cycle. But there is help. Many consumers have turned to nonprofit credit counseling to help get their debt under control, learn how to budget and keep their finances on track. Credit counseling can help solve two problems – managing your current debt and helping you understand how to avoid more debt in the future. In fact, many nonprofit organizations offer free financial counseling to those in debt, which means that you don't have to shell out any more money to help get your situation under control What is Credit Counseling? Credit counseling is different depending upon the individual agency, but most organizations will look at your credit report, look at your monthly bills and ask you what your monthly income is. A counselor will help you to understand the difference you have between the money coming in versus going out. They'll work with you to budget your money and they'll also work with your creditors. They can negotiate lower payments, or even settlements as part of a debt management plan. If necessary, they can roll all of your debt into one manageable monthly payment. You pay the agency and they distribute the money to the creditors. Sometimes, after a session with a credit counselor you may discover that you don't need a plan like that. Each situation is unique and a good agency will treat you like an individual. Effectiveness of Credit Counseling You might be asking yourself, "does credit counseling work?" Once you enter a debt management plan and begin paying off your debt, you'll probably feel some relief from beginning to solve your problems. While credit counseling won't stop you from getting into future debt (only you can do that) it, it can help solve your current debt problems. Credit Counseling and Bankruptcy Notice that the government's answer to, "Does credit counseling work?" is "yes." If you want to file for bankruptcy, you must attend a credit counseling session first. This session works just like any other credit counseling session. The counselor will look at your situation and advise you as to your best options. If bankruptcy is the best choice, he will advise you to file. Otherwise, he may encourage you to enroll in a debt management plan to help take care of your debt. </p><strong>About the Author:</strong><br />The author has an immense knowledge on <a rel="nofollow" href="http://www.advantageccs.org">free financial counseling</a>. Know more about <a rel="nofollow" href="http://www.advantageccs.org/counseling.html">does credit counseling work</a> related info in his website. <p> Article Source: <a href='http://www.articleseen.com/Article_Is-Credit-Counseling-the-Answer-to-Your-Debt-Problems_239444.aspx'> http://www.articleseen.com/Article_Is Credit Counseling the Answer to Your Debt Problems?_239444.aspx</a></p>

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Keywords : free financial counseling, does credit counseling work,

Category : Finance : Finance