Get debt help from a credit counseling agency.

If you are looking for an alternative to a debt settlement plan, credit-counseling agencies and debt-management plans (DMP) are other options to consider. A credit counseling agency can definitely guide you through the process of a DMP, which can provide you with help for your medical and credit card debts. Credit-counseling agencies offer a variety of services, including they can review a consumers finance options and also provide education on managing debt. In addition they can also set up debt- management plans that will work with a creditor to reduce and eliminate late charges and also lower the interest rates on your debts while the consumer continues to pays a balance in full over an extended period of time. The fees you pay a credit counseling agency are also reasonable. Startup fees shouldn’t exceed $50, and any monthly fees you may need to pay them should be about $25, according to statistics from the credit-counseling foundation.

 

 

 

What other services do credit counseling agencies provide?

Some of the other services that are provided by a credit counseling agency that can help you get out of debt include:

• They will provide tailored budgeting and money management advice for your personal situation to help you prevent future debt problems and eliminate your current debt.
   
• They will negotiate with your creditors on your behalf to get them to reduce or eliminate late fees and charges. During the negotiations they will also have your creditor extend the term of your loans and debts, and they will try to get you to pay a lower interest rate.
   
• A credit counseling agency will review your entire financial situation, and if your debt is burdensome enough, the credit counselor will work with you and encourage you to enter into a debt repayment plan that will require you to pay a set amount to the counseling agency each month. They will then take this monthly payment and pay it directly to your creditors.

In addition, the foundation strongly recommends that consumers select certified credit counselors and even consider using a nonprofit counseling agency that may be affiliated with groups, such as the foundation, with the highest ethical and financial standards.

If someone can’t afford these fees, the credit-counseling foundation says that bankruptcy may be a better option for consumers who can’t afford to pay for debt management or debt settlement. Unfortunately there are some people who just really need to go to the bankruptcy process and they should not pay out all of their remaining savings and pay some of these fees to these third parties.