Debt Clear Direct

by Center for American Progress

Finding an Accredited Debt Consolidation Credit Counseling Agency

Your financial integrity is extremely valuable and if you need help getting back on track the best people to go to for debt consolidation credit counseling is a professional, accredited agency. There are so many options that you can take to sort out your debts that it may seem overwhelming and a debt consolidation credit counseling service can help you to decide which is the best route for you to take.

A debt consolidation credit counseling agency will go through your financial situation and work with you, and your creditors, to create a repayment plan that you can keep to until your debts are paid off. There are literally hundreds of debt consolidation credit counseling agencies and it is important to choose the best one for you. One of the major factors that you should consider when searching for the best debt consolidation credit counseling agency to suit your needs is to check if they are accredited to a third party organization. Accreditation means that the services of the debt consolidation credit counseling agency are endorsed by another organization that confirms their high standards.

There are a number of organizations that a debt consolidation credit counseling agency can be accredited by but the most well known is the Council on Accreditation of Services for Families and Children, Inc. (COA). This guarantees that the debt consolidation credit counseling agency will adhere to high standards of service delivery, counselor certification, fiscal integrity, and volunteer Board governance. The COA does not give accreditation to every debt consolidation credit counseling agency and they only give their seal of approval to those debt consolidation credit counseling agencies who meet their exacting standards are given their seal of approval.

Many debt consolidation credit counseling agencies are members of the National Foundation for Credit Counseling. Debt consolidation credit counseling agents who are NFCC-certified have undergone a rigorous training and testing program.

To receive accreditation the debt consolidation credit counseling agency must comply with several service-specific quality standards such as:

Annual audits of operating and trust accounts
The debt consolidation credit counseling agency meets all consumer disclosure requirements as set forth by the Federal Trade Commission
Funds are disbursed daily and funds are disbursed immediately in emergencies
Each consumer receives an assessment of how he/she came to be in financial difficulty, a comprehensive financial plan, and a written plan of action
Clients receive (at minimum) a quarterly statement

In addition, the COA has their own standards for service delivery & quality that a debt consolidation credit counseling agency must meet for them to be accredited which are:

Meeting the needs of cultural/ethnic population groups in the communities they serve
Fair and equitable treatment of creditors
Minimum fee structures for consumers
Presentation of educational programs
Counselors who are NFCC-certified
Having a branch counseling network in place for support their clients

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• The Secret of Debt Consolidation Credit Counseling
• How Consumer Credit Counseling Works?
• Getting a Credit Counseling Service – 5 Most Important Questions to Ask

by jajacks62

What Is Credit Counseling?

Credit counseling is a good resort to manage various debts properly. Generally credit counseling is a professional counseling, provided by various organizations to help borrowers for repaying their debts properly. With the help of these organizations, people can manage their debts and lessen their burden.

Credit counseling helps people to overcome their debts burden. Their counseling enables borrowers to pay off their debts with smaller, monthly repayment that is convenient for everyone to pay. Especially credit counseling is required for those who are confused with various debts and different lenders.

These days, credit counseling services are easily available. Many companies provide this service. One can find out this service from his local communities and over the internet. For providing credit counseling service, some companies may charge fees or some organizations do not charge fees for their services. To manage debt problem properly, it is important to find a proper credit counseling service.

However, credit counseling is the best option for borrowers to prevent all sorts of debt damages. The way a credit counselor works is as follows:

At first, a counselor evaluates a borrower’s condition and on the basis of that he makes a plan. And this plan helps the borrower to pay off his bills. Sometimes, legitimate counseling service can convince creditors to take less than borrowed amount and arrange a longer repayment period.

In case of credit counseling, most of the time borrowers do not need to pay their bills directly. But, instead of that, in every month they make only payment to the credit counseling service and that amount is distributed among their creditors in accordance with the agreements they have arranged. All together, their arrangement will help borrowers to lessen their loan load and manage their debt properly.

As it is mentioned before that choosing a right credit counseling company is also important. With help of an unprofessional credit counseling company, a borrower can more get into debts, instead of coming out of it. Even more, such kind of unprofessional companies can misguide borrowers too. Therefore, individuals are advised to choose a credit counseling company wisely. In that case, one can take help of local associations of credit counseling companies. By making some efforts borrowers can make this service remunerative for themselves. Borrowers should check the reputation of various companies, duration of their service, and if possible they can try to get the opinion of their previous clients. At the same time, borrowers should bear in mind that at the time appointment with credit counseling company, it is better to present as much of their documentation and paperwork as possible, like proof of their expenditure, their income, the verification of their debts etc.

Credit counselling is offering borrowers a service that will help them to eliminate all confusion and complication regarding various debts and creditors. To manage debts properly and prevent monthly budget from unnecessary loan load, the necessity of credit counseling is unavoidable.

Related Posts:

• What is Credit Counseling?
• How Do Lenders View Credit Counseling Services?

by savedarfurcoalition

Free Debt Relief Online

Free Debt relief Online is an innovative solution for consumers struggling with heavy debts and need relief from the stress caused by this. Free Debt Relief Online uses a debt negotiation program with your creditors to lower your debts. Our goal is to save your most possible money and to get you debt free in the shortest amount of time.

We may be able to help you save more money than simple Credit Counseling service providers while protecting you from the harsh impacts of bankruptcy. We think we have the best solution for most consumers with serious debt concerns.

We are specialized in helping people all over the country. We regularly with intense work with creditors to resolve your outstanding debts, and thus we have created a favorable impression in debt relief services. Our unique Free Debt relief Online program takes all of your current debts and converts them into one easy-to-manage, affordable monthly payment.

Choose our services now if you are struggling with heavy debt amount and lot of stress. We can serve you in a better and different way and make you free from all of your debts and stress.

The Total Amount of your Unsecured Debt must be At Least ,000, and the balance for Each Individual Creditor must be At Least ,000. Unsecured debt includes: Credit Card Debt Oil/Gas Credit Cards Medical/Hospital Bills Personal Loans (unsecured) Department Store Credit Cards Local Merchants The following are NOT eligible: Past Due Rent Past Due Utility Bills Student Loans Secured Loans Mortgage Payments Income Tax Car Payments

Payments

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by pennstatelive

Free Online Credit Counseling ? Who Does it Benefit Most?

Who needs online credit counseling the most?

Very few Americans have no form of debt. Whether it is a home mortgage, credit card, car loan, or student loan, Americans generally carry some sort of debt. With all the talk about credit counseling, there are lots of people wondering if credit counseling online is for them. If you are one of these people trying to figure this out, there are a number of things to consider.

You don’t need online credit counseling if

Generally, if you are able to pay your bills, and pay them on-time, you do not need credit counseling. There can be exceptions to this, but in general, credit counseling is for people who cannot pay their bills. If you can pay your bills, but you are unhappy with your interest rate, sometimes you can negotiate your interest rate by yourself. If this doesn’t work, it might be possible to roll your debt onto another credit card or a loan with a lower interest rate. If these options are no possible, then having a credit counseling service negotiate for you might be worth consideration.

You are a great candidate for credit counseling if

On the other hand, if you have trouble making the minimum payments on your debt, then free online credit counseling might be for you. These companies help you consolidate your debt, so you’re only sending out one payment a month. The credit counseling company will then distribute out the payment you sent them to your debtors. Working through a free online credit counseling firm can give you extra leverage when trying to get your interest rates lowered.

Note that credit counseling companies will not take on all debts regardless of amount. There are some situations where bankruptcy can be a better solution than debt consolidation. Also, be wary of consolidation programs which have a payment schedule longer than five years. Often times if it will take longer than five years to complete the payment schedule on consolidated debt, it is better to declare bankruptcy.

Contact a Free Online Credit Counseling Service Today!

If it sounds like free consumer credit counseling online is a good fit for you, you can look through the National Foundation for Credit Counseling to find a reputable credit counseling service. Don’t wait, every day that passes could be a day when you start paying down your debt.

Find More Credit Counseling Articles

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• Getting a Credit Counseling Service – 5 Most Important Questions to Ask

by Jimmy MacDonald

How Do Lenders View Credit Counseling Services?

Typically consumers that have overwhelming debt have two options, either enter into a Consumer Credit Counseling Program or declare Bankruptcy. While the two options may have a lot of similarities, most will opt to enrolling into a Consumer Credit Counseling program for such reasons as it is more cost effective and easier to implement.

Many credit card companies and creditors realize that it would be more beneficial to actually work with debtors and make affordable payment arrangements than to pursue typical collection activities. Instead they work with each of the individual’s creditors to come to some agreement that will result into a reduced single payment plan, a consolidation of their debt, and or a reduction of interest rates and late fees – thus making it possible for the debtor to repay his or her debts over a period of 3 – 5 years. Once enrolled, the debtor will make a single payment to the consumer credit counseling service, and then the counseling service will make all the payments to the creditors.

One of the advantages of credit counseling services is to educate their client about debt management and budgeting.

The main disadvantage of enrolling into consumer credit counseling services is that many creditors will make a notation on the debtor’s credit report indicating that the debt is being managed by consumer credit counseling agency.

Another major issue that a client may experience is, even though they are making their monthly payments to the credit counseling service on time, the credit counseling service doesnt make the payments to the creditors on time. Now this will reflect on the clients credit report as late payments.

And to add fuel to the fire, it is not uncommon for the credit counseling service to make the payments on time, while the creditors are not accepting the reduced payment amounts. This, too, would negatively affect the consumer’s credit report.

However, if you are in the market to purchase a home or refinance, it is important to find a mortgage expert that specializes in helping individuals that have been enrolled or that are currently enrolled in consumer credit counseling services. The lender will request from the credit counseling agency a copy of the agreement which will indicating the date the consumer entered into the program, all the creditors involved, and the payment history of the consumer’s payments. From this information, the lender will then determine if the client qualifies for a mortgage loan. FHA LENDERS understand that if the consumer has been making their payments on time to the consumer credit counseling agency, but the creditors have been getting their payments late, then that’s not the fault of the consumer and shouldn’t penalize them from purchasing a home or refinancing their home.

It is important to note that many lenders view credit counseling services as similar to a Chapter 13 bankruptcy, because both can entail a payment plan and re-negotiation of debt payments. (And, in fact, some people who are using a credit counseling service do end up filing bankruptcy because they still don’t have the income or money management skills to handle the payments.) So, in some cases use of such a service can be a negative.

However, many FHA Lenders recognize that if a person is attempting to handle debt responsibly by enrolling in these types of services, then that person probably takes their financial commitments seriously. In general, in order to get a mortgage the borrower must have a 12-month history of paying on time and a letter from the counseling service stating that purchasing a home or refinancing will not interfere with the repayment plan. Thanks to FHA Loans, consumer credit counseling services will not restrict the borrower from obtaining a low interest rate mortgage loan.

You’ve seen the ads: credit counseling companies say they can help by getting your payments and interest rates lowered. Others claim they can get your debts wiped out entirely by settling them for pennies on the dollar. Money reporter Stacy Johnson takes an inside look at these companies.

More Credit Counseling Articles

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