How to get out of debt from Consumer Credit Counseling Services.

The Consumer Credit Counseling Services organization provides a variety of suggestions for how to get out of debt. The tips are wide ranging and thousands of people have relied on them. Here are five of their most important.

First, and most critically, reduce expenses and free up money to pay down your credit card debt. If this is not done, then it is almost impossible to break the cycle. If, after doing this and trimming all the expenses you can, these are the options to reducing your credit card debts in as little time as possible.

1. Change how you pay down you debt

Consumer Credit Counseling Services says that the conventional wisdom of paying a little extra each month toward all the monthly bills on your credit card is wrong.

What they suggest people do instead is to pay extra on the credit card with the smallest balance. There should also be an emphasis given to a card with a higher interest rare, but CCS says that is not the deciding factor. They have observed and determined based on calculations that you'll get out of debt faster, because by paying off one account at a time, you now have one less minimum payment to make. Many people also experience a psychological benefit by getting one or more debts down to zero. Then, once one is paid off, you can keep rolling that money over onto the next smallest balance to pay that off.

2. Get out of debt yourself

It is never a bad idea to dial the toll-free number on the back of your credit card, and ask for help. This is a pro-active step to take. Be ready to negotiate your credit card bills. More.

Another option is you can contact directly the creditors that you owe money to and proceed make arrangements to make payments on your bills. At the same time this is done, you can ask to have your payments lowered.





Always keep in mind though that banks will put their best interests first, not yours, and banks will try to make as much as they can. So it is a good idea to talk to a credit counselor first, or explore other options such as debt management plans.

3. Use a Consumer Credit Counseling service

All Consumer Credit Counseling Services will provide their clients with free advice and offer workout programs. They will negotiate with banks and credit card issuers on your behalf. CCS will also help someone enter into a monthly budget. In general, the organizations will try to reduce your interest rates in exchange for fixed payments that are intended to eliminate your unpaid debt in a short period of time, say three to five years.

The disadvantages to using consumer credit counseling include the fact that they require people enrolled in the program to give up the use of all their credit cards, including those reserved just for emergencies. Another con is that the debt workout program may show up on your credit report.

4. Use a debt consolidation company or an attorney to provide assistance with debt.

Research the company and talk to many different companies to determine what they will do for you, and how much it will cost. If the company is run by an attorney, check with your state attorney’s office to see if licensed.

The services offered will vary by provider. However many of these companies will negotiate directly with your creditors to try to settle or eliminate your unpaid bills and debts.





5. File bankruptcy.

This is your option of last resort. It will make it very difficult, if not impossible, to get credit for the next several years. This means the person may not be able to buy a new car, get a house, and it can even hurt you when applying for a new job. Consumer Credit Counseling Services does have some tips on when to file and they give information on how to get help with bankruptcy. Learn the pros, cons, and the process to follow.

Use the bankruptcy option to eliminate your debt only if you have looked into all other options, and if you absolutely can't afford to pay back your bills and debts. This is always a last resort. It is for borrowers who don't see anything that may help you in the future.

Find a Consumer Credit Counseling Agency

There are several national non-profit agencies. Find information on them here. The fees involved to use them vary, and some low income families by be given free advice. In addition, many of the credit counseling agencies have offices located in your county, or maybe in the community next to you. See you can stop by and receive face to face assistance, and learn about your options.

Community action agencies may also offer some basic credit repair, budgeting and possibly even debt reduction services. Click here to find community action agencies in your area. Call them to understand what type of personal financial management services they may offer and learn about other debt reduction programs in your local community.







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