What is Financial Counseling All About?
Many people who are suffering from extreme financial difficulties due to debt have successfully made use of financial coaching and counseling services. If you work with a credit counseling service you will have your own financial coach who will help you to get out from under your debt.
If you are sick and tired of debt collectors bothering you as well as terrified of the collection agency letters you keep receiving, then financial counseling just could be for you. Montana and federal law is on your side. You have the advantage of the Fair Debt Collection Practices Act and the laws of Montana to protect you from unfair practices.
There is a right way and a wrong way to deal with financial coaches though. First of all, you need to be able to tell the good from the bad. Not all of these services are reputable. Millions of people have been fooled by debt consolidation scams, don’t you let yourself become one of these victims.
Any offer that attempts to offer you an overnight solution should be thrown out immediately. There is no quick fix for bad credit. It is going to take some time before you are back on top. You should look for trustworthy credit repair services that have been accredited by Consumer Credit Financial Coaching.
Once you have found a reliable service you will have to make an appointment so that you can counsel with them. The coach will need documentation of each one of your debts, you need to show the financial coach everything because that is the only way they will be able to work out a solid debt reduction plan for you.
Now it depends on the debt counselor. You will then let your creditors know what is what and explain to them that you are having problems and they are working with you to fix it. They will help you work with the lenders to come up with a plan that you can live with, one that comes with smaller payments and lower interest rates.
If you want, some financial counseling services will allow you to send them a lump sum payment that they will make sure gets to the creditors each month. This is referred to as a debt management system. While this is a handy tool, these services have been known to be late occasionally with the payments and this is something that you want to avoid. Late or missed payments will do even more damage to your credit report. What you need to do to avoid this problem is really check out the service and find out what dates they plan on mailing out any payments.
A credit counseling service that is running a scam will ask you for huge fees up front before they do anything at all whereas a reputable company will only charge you about 14 bucks a month. That is one of the best ways to tell the true services from the greedy scammers.
While dealing with credit counselors may not be perfect, if you are in serious trouble due to your debt and you just can’t deal with it anymore, it might just save your life.
Credit Repair Through Credit Counseling
By managing these debts properly, you will maintain a good credit rating which will allow you to continue to receive credit in the future. If you fail to make timely payments towards your loans – or worse, you let them go in default – you will find yourself stuck with a poor credit rating, which will rob you of many economic opportunities. In order engage in credit repair, you must slowly build your credit rating back up again.
In general, credit counseling is performed by non-profit or for profit agencies, and is not to be confused with for-profit credit repair companies. In the past credit repair companies had a reputation for being scams, especially those ones who advertise quick fixes.
In contrast, a financial coaching or counseling service, like OperationCare.com, will provide advice and in a context that precludes a profit motive. This is the most effective and most intelligent way to carry out credit repair. To deny that rebuilding your credit rating will be a long process requiring time and discipline is to do yourself a disservice, and a credit counselor will help you make the long term plans and decisions you need to in order to engage in effective credit repair.
Most good financial coaching organizations will provide you with advice and workshops, as well as educational materials. They will help you learn to both make and stick to a budget, which over the long term will be extremely beneficial to your credit score. They will also be able to provide you with one-on-one counseling, so you can examine and learn to make good economic decisions based on your particular credit experience.
The problem with some credit repair firms – and the main reason some are suspicious of them – is that they propose a quick, one size fits all solution. Anybody who claims they can quickly repair your credit without knowing anything about the situation is not being truthful. A financial counselor can be crucial in providing exactly the kind of attention that a few credit repair companies won’t provide.
Most importantly, in Hingham if you engage in credit repair by utilizing a counselor, your solutions will be more long term, because you will be learning how to manage your budget more effectively, and making permanent changes to your spending habits. This is far preferable to paying a credit repair company that promises a quick solution that is of no educational value to you.
When you are ready to obtain the counseling you need to repair your credit and improve your credit report call Operation Care, Inc. at 844-CARE-866 or 844-227-3866.