For a person or company that is deep in debt, on of their options is to turn to credit counseling. While such counseling, offered by various companies, does not include a loan, they are able to work directly with your lender consolidate all of your debts into one easy monthly payment.
This form of debt management is a must for small companies that are in danger of declaring bankruptcy. Individual debtors can also avail themselves of this counseling. If you realize that 40% or more of your income post-tax is going towards debts, this is a definite indication of the need for help with debt control.
The counselors who are employed by these companies are trained professionals. They will analyze your situation and see where you can make adjustments in your income or spending. They will also do their best to negotiate lower interest rates or a longer term with your creditors.
These companies can help to keep collectors from harassing you. One of the worst experiences that could be had is having to deal with such agents. You will also learn, with their help, you to better budget your money. Most importantly you will receive help with regards to keeping a tight reign on your spending.
There are two main types of credit counseling companies. Some are large, money-making oriented companies that charge dearly for their services, which are generally of very high quality. The second type of company is the more socially oriented one, usually non-profit organizations.
You will be aided by the services of these companies as they work directly with your lenders, enthusiastically helping you establish a plan to eliminate your debt.
While both companies have their pros and cons, each individual must make their own decision after some careful research. Check to see what the Better Business Bureau Office in your area has to say about the company. Look into how the company makes payments to the lender. If they do so on a weekly basis, you will avoid late fees and receive lower interest rates. If a company fails to do the latter, avoid them at all cost.
Make sure that the company you choose to do business is stable. You want to make sure that it won't go bankrupt after taking your money.
Are debt consolidation non profit services the best way to handle consolidation? Maybe, but not always. Get the full story on the Inside Debt Consolidation website.
Article Source: http://EzineArticles.com/?expert=W._M._Blake
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