Posts Tagged ‘Consumer credit counseling services’

Three Things You Must Know About Consumer Credit Counseling Services

If your personal debt is growing fast, where you owe different amount of money to multiple creditors, you must be having great difficulty in managing your finances. Consumer credit counseling services can help you in these situations. Through their , they can show you the way on how to get your finances back on track. However, you have to be very careful while you use these services. Following are the three things that you need to keep in mind.

Unfair Business Practices

It is very important for you to keep in mind that not all agencies are genuine ones. There are several unscrupulous companies also available out there. That is the reason you are strongly recommended to check with the local consumer protection agencies or the Better Business Bureau (BBB) and find out if the service you are considering signing up for is reputable. You can check the background records of the companies through BBB to ensure that they are legitimate and genuine. You must be wary of those that have lots of complaints against them. If a counselor is forcing you to make decision, it should be taken as an alert sign. For example, you need to make sure that your creditors have approved the proposed debt management program before you start making the payment toward the same. Always remember, fair business practices mean the entire process must be completely transparent.

The Cost Of Additional Services

When you enroll in a debt management plan (DMP), you may be asked to pay certain fees. For example, you may be charged an initiation fee for opening your account. Besides that, most agencies also charge a certain amount of money per month as administration fee. The monthly fee is usually around 10% of the total debt, but as per laws applicable in these cases, no agency can charge you more than $50 per month for consumer credit counseling services.

Hidden Costs Involved With A Non-Profit Agency

Many counseling agencies advertise themselves as non-profit organizations. But, it is important for you to keep in mind that just because they have a “non-profit” logo with their company, it does not mean that all their services are free. The term non-profit means the agency is not making any profit by offering these services; they may still charge fees in terms of administration or processing charges. This way, the services offered by non-profit organizations may also turn out to be very expensive, something that you may not be able to afford. In fact, as per the U.S. Federal Trade Commission (FTC), just having the “non-profit” tag does not even make a company legitimate. Therefore, you are strongly recommended to do a thorough background check before you sign up for just any debt management program.

Overall, when it comes to making the best use of the legitimate and result-oriented consumer credit counseling services, your awareness plays the key role. If you keep in mind the above three things, you will definitely be able to make an informed decision.

Custom Search

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?