What is Financial Counseling All About?
Many people who are suffering from extreme financial troubles 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 debt counselor who will help you to get out from under your financial debt.
If you are sick and tired of bill collectors calling you in addition to terrified of the collection agency letters you keep receiving, then financial coaching just could be for you. Indiana and federal law is on your side. You have the advantage of the Fair Debt Collection Practices Act and the laws of Indiana to protect you from unfair practices.
There is a right way and a wrong way to deal with credit counselors though. Of all, you need to be able to tell the good from the bad. Not all of these services are reputable. Countless people have been taken in by scams, don’t you let yourself turn into one of these victims.
There is no over night fix for bad credit. You want to look for reliable financial counselors that have been accredited by Consumer Credit Counseling Services.
Once you have found a really good service you will need 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 counselor every detail because that is the only way they will be able to work out a solid debt snowball plan for you.
Now it is up to the credit counselor. You will then let your creditors know what is happening and explain to them that you are having problems and they are working with you to fix it. They will help you deal with the lenders to find up with a plan that you can cope with, one that comes with smaller payments and lower interest rates.
If you want, most credit counseling services will allow you to send them a lump sum payment that they will make sure gets to the creditors each month. Late or missed payments will do even more damage to your credit report.
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, financial coaching is performed by non-profit or commercial agencies, and is not to be confused with for-profit credit repair companies. Previously credit repair companies had a reputation for being scams, especially those who advertise band aid solutions. Unfortunately, there is no overnight repair for your credit score. You can’t even do it in 30 days; like less reputable companies advertise.
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 debt counseling 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 companies – and the main reason many are suspicious of them – is that they propose a quick, one size fits all solution. Anyone who claims they can quickly fix your credit without knowing anything about the situation is not being truthful. A financial coach could be crucial in providing exactly the kind of particular attention that some credit repair providers won’t provide.
Most importantly, in Palmer if you accomplish credit repair using 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 receive the counseling you need, to repair your credit and improve your FICO score call Operation Care, Inc. at 844-CARE-866 or 844-227-3866.