Tuesday, April 1, 2008

Consumer Credit Counseling Services

Consumer Credit Counseling Services
By Neil D'silva

What are the functions of Consumer Credit Counseling Services?

Contrary to what most people think, or want to think, about consumer credit counseling services, these services are not just about mere counseling for your financial credit problems. They are much more than that.

The following is a list of all the services that the consumer credit counselors will provide to you:-

· Of course, the first service is counseling itself. They will listen to your financial problem carefully. When you are speaking all these things out, you are yourself realizing the extent of the problem you are in. Anyways, the credit counseling services will try their best to counsel you verbally about your financial problems at the outset.

· The next step is to train you in financial management. The credit counseling services will sit with you and discuss how you can better manage your finances. They will prepare a budget for you and your family so that you can make the best use o the income you are getting and efficiently manage the payments you need to make.

· Most importantly, they will tell you of schemes in detail, such as the debt consolidating and debt refinancing plans by which you can solve all your credit problems. Debt consolidation means clumping all your individuals into a single loan which you can pay with greater ease. While, debt refinancing means getting your existing loan renewed through another lender at a cheaper rate of interest. The consumer credit counseling service will coach you in these plans, and will help you implement them too.

Why choose Consumer Credit Counseling Services?

It is very difficult for people who are deep in debt to manage their finances properly. Sometimes, these people might have the financial capacity to come out of their debts, but because they are not managing their loans properly, they are not able to solve the situation. This is where the consumer credit counseling services help. They will actually sit and discuss the problem with you and will tell you of ways by which you can be debt-free.

Most people when they approach consumer credit counseling services, they do not even know what debt consolidation or debt refinancing means. Even if they know about them, they have most likely a very hazy idea about it. It is the job of the counselor to make people aware of these viable solutions to their problems.

Credit counselors also become important when a person is to file for bankruptcy. In fact, the American law has made it compulsory for people to enroll into the programs of the credit counselors before their bankruptcy so that they can seek knowledge of how to avoid this sticky scenario the next time round.

Thus the consumer credit counseling services are not all out there to make a fast buck. Most of them have genuine intentions and a noble way of doing business.

Which Consumer Credit Counseling Services to avoid?

Many credit counseling services are nothing but scams, and you need to avoid them like the plague. Avoid all companies that are not registered with the government. Their programs have no value at all in the courts. Do not go for any consumer credit counseling services who want to push a particular policy of theirs. You must make sure that they are understanding your problem first, and working with you to find a solution for it.

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