This is an incredibly difficult time. You have grown up believing that honest people pay their debts. You consider yourself honest, but you can't pay your debts. Once the collection agencies get involved, things get nasty. Collection agencies try to make you feel like a bad person. It's their job to intimidate and shame you into paying the debt, no matter what.
Collection agencies are not in charge of deciding who is a good and bad person. You're not a bad person because someone on the other end of the phone says so. You are a good person with a debt problem. This could happen to anyone, and it does happen to a lot of people. Sometimes even huge corporations go bankrupt; it happens.
The focus now is on how you can get out of this situation. You may be able to get help from a credit counselor. This may be a good course for you, if you are having difficulty solving the problem on your own.
Before you sign up with a credit counseling firm, research the firm carefully. Some 'non-profit credit counseling' organizations are not what they seem. Make sure you're working with a real credit counseling firm, and that they have a good reputation. If your creditors won't work with them, they're not going to be able to help you.
The most important thing is to make sure the money you send goes to your creditors, and that your creditors agree to the plan your credit counselor puts together. If your creditors don't agree, you're still on the hook.
You should avoid, at all costs, 'credit settlement' firms. These companies collect payment from you, withhold it from your creditors, and then attempt to make a 'lump sum' settlement. The problem is that during the many months you're paying them, your creditors are not getting paid, and have not signed any agreement with the credit settlement firm. So you can be sued by your creditors and have your wages garnished, while the credit settlement firm enjoys the use of your money. Very few people find these firms useful in overcoming their debt problems.
A credit counselor can help you reach an agreement with your creditors about paying off your debts, and can help you keep that agreement. You pay the credit counseling firm, and they pay your creditors. Your creditors will agree to work with you because they believe they'll be paid, and you have a chance to get back on your feet.
If you're over your head in debt and can't see any way out, consider credit counseling. Find a good, solid organization with a great reputation, and ask them if they can help you. Understand that you will be able to pay off your debts with their help, but you will have to change your spending and debting habits to avoid falling back into the same situation later. If you're prepared to do that, credit counseling can help.
Commercial Credit Counseling Services
We all make mistakes; no one is perfect. However, we can learn to limit the number of mistakes that we make by listening to other people. Some of them can give us helpful advice, especially if they are professionals. Like credit counselors; America needs more of them to help keep our finances organized.
Speaking with a credit counselor is worth it however you chose to look at it. Sometimes it does not have to be because you do not have the right ideas. Sometimes it is simply because you want to know if you are right or wrong. Two heads are always better than one.
When you approach a creditor, do it with your DMP. That's your debt management plan. Now, in your own best interest, don't try to draw that up for yourself, make sure it is set up by a credit counselor or a whole group of them. So what, it costs you a few hundred bucks? But you could get millions worth of property in return.
When you obtain credit from anyone, you want fees and interest rates that pay you well. You however need to give the creditor something in return. That something needs to be a juicy debt management plan that they cannot fault. Now that is where you need credit counseling.
A debt management plan might be the end to all your credit worries. Actually, call that a visit to your credit counselor. They are the ones who will be getting the plan for you. And then you and your lender can become bosom friends.
You probably never thought that there was a difference between good debts and bad debts, right? As far as you are concerned, any kind of borrowing is bad, especially when you cannot pay it back with a straight face. That's because you haven't had credit counseling. Certainly when you do, you will think a lot differently and even see credit as a way to get rich in this modern day.
Do you know that you can be debt free within a period of 3 to 6 years? I'm certain this is a lot more attractive than the 20 years that normally is the trend? How to go about it is to get credit counseling, and a debt management plan that you can present to your bank. Often they respond by letting you pay larger sums and smaller interests.
Having learnt what you can from your credit counseling sessions, you are now prepared to face up to your creditors. You want to be certain you don't forget your debt management plan, because that is your ticket to a front row seat with financial emancipation. And when you have been able to do all that, your bank and you can become friends fast.
Both Brian Higdon & Don Pedro are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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