Consolidated Credit Counseling
- What is consolidated credit counseling?
- How to choose the good one?
By Roy Wallace
Many credit counseling organizations provide valuable advice, education and assistance, but consumers need to be aware of the "quick fixes" offered by some organizations. Consumers can help protect themselves from deceptive credit counseling practices by knowing how to choose a credit counselor. If we are having a difficult time of repaying our debts, a counseling agency may be able to work out a Debt Management Plan for us. Credit counseling agencies negotiate special programs with creditors that are not available to the general public.
These are the important guidelines for choosing credit counseling agencies:
- A certified counselor will do your budget, including your expenses and income.
- They will figure out the total amount of debt you owe and arrive at a figure you can pay each month toward that debt while satisfying your creditors' requirements.
- Once all parties agree on the monthly amount required to liquidate your debts, you send that amount to the counseling agency each month. They distribute the funds to your creditors, who have agreed to accept a lower interest rate (and perhaps a lower monthly payment).
- The greatest savings you will see by using a credit counseling agency is that they can get creditors to lower or eliminate interest as well as other finance charges, late payments, and other penalties.
- Since most non-profit counseling agencies have to charge a start-up and monthly maintenance fee, find out up front what the cost will be and make sure they put it in writing.
Their mission is to help families in financial crisis and solve money management problems through education and professional counseling.
By utilizing educational programs, professional counseling and money management instructions, Consolidated Credit establishes a customized program that fits your needs.
When you contact Consolidated Credit, you will be working with a highly trained counselor who will begin the process of freeing you from your financial misfortunes, regardless of your circumstances. This is a confidential exchange and you can expect to be treated with the utmost care and respect. We are here to provide you with a plan and a chance to become debt free.
Consolidated Credit is a member of the Better Business Bureau, the United States Chamber of Commerce, the Greater Fort Lauderdale Chamber of Commerce, the Association of Independent Consumer Credit Counseling Agencies, and the American Collection Association.
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Bankruptcy In Credit Counseling Organization
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Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order.
The credit counseling services check out whether debtors can pay at least 60% or more of their debts so that they don't have to file bankruptcy. Moreover, those opting for bankruptcy will have to go through a Means Test which can determine the type of bankruptcy that he should file. When you qualify through the Means Test, the court appoints a bankruptcy trustee to supervise the payment of your debts. Usually payments towards secured debts like mortgages are given priority over unsecured debts during a bankruptcy case. Otherwise the lender may take away the property acting as collateral for the secured debt.
The Bankruptcy proceeding has two aims. They are :
- To free the individual from the pressures of creditors (people they owe money to) to enable him or her to make a fresh start.
- To ensure that all assets (such as property and investments) are distributed fairly among the creditors.
The primary advantage of bankruptcy is that for the person involved, bankruptcy provides relative peace of mind and possible automatic discharge after one year
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For more credit counseling information, please visit our website http://www.aboutcreditcounseling.net
