What to do if I can’t find credit counselor?

You can manage excessive debt by consolidating the debt to one bulk of loan in the lower rate. Tax laws give benefit for people that have own equity by take home equity loan to consolidate credit card balances, auto loans, and other personal debt. Your payment tends to be decreased, because you have to pay just the monthly interest to stay on. Unfortunately after consolidating, many people think them safe for their debt and take more credit card debt, and they are facing a lot of bills again. This is the worst cycle.

In other way, you can talk to a credit counselor. Legitimate credit counseling agencies charge you a fee, but they won’t guarantee about eliminating on your record. They will help you build a payment schedule with your credit card company and provide some tools that can gathering information of your debt and track your spending in the future. These companies can negotiate with your creditors for reduce your payments and lower interest rates. The process is you pay a monthly to the counseling agency and then they distribute the money to your creditors. Some of the 1,300 Consumer Credit Counseling Service Centers charge a nominal start-up or monthly fee for their services, while others receive a portion of the debtor’s payments to creditors as compensation for their services.

To find a good credit counselor, you can see National Foundation for Credit Counseling website (www.nfcc.org) or the Association of Independent Consumer Credit Counseling Agencies website (www.aiccca.org). Make sure you have understanding of any fees involved, check with your local Better Business Bureau to determine whether the agency you choose has a good customer service record.

Do your best for find credit counselor that suitable for you.

Debt settlement and Debt Negotiation Company. This article will tell you

These companies will tell you that they do a difficult thing than debt consolidation companies. The debt settlement/debt negotiation companies charge fees for their services. And some of them will do nothing and run away from you.

The three methods that debt settlement/debt negotiation companies use are:
1. They require your monthly payments to debt negotiation companies. Then they don’t pass your money to Credit Card Company but they just put money to some kind of an account.
2. When your account is going to be charged by Credit Card Company. They will withdraw the money in ‘some kind of account’ and negotiate for settle your debt.
3. They claim that you will eliminate your credit card debt in six months or less and your credit score will not be lower.

I think it a smooth process likely to be best .But there are some problems here.

First of all, the credit card company may not accept negotiation. What little total of your minimum payments is less than 10% of your debt? Some credit card companies would rather take the tax write off then take so little money. In this case, the debt negotiation company takes their fee, credit rating is declined, and your money isn’t worth for this process! So you should avoid debt consolidation, debt settlement and debt negotiation organizations at all costs. You can get the same service, for less money and less hassle, at your local CCCS. CCCS is a member of the National Foundation for Credit Counseling, offers person-to-person counseling, and includes important budget counseling that will help prevent future problems.

Debt Relief Company. This article will tell you

Similar to typical Consumer Credit Counseling Services, debt relief companies offer advice of your credit card debt and your income, and plan your payment schedule that suite to you. They also negotiate with your credit card company for lower interest rates and minimum payments. Some of them call you the fees which they called ‘Donation’.

As with a Credit Counseling Services payment plan, you make one payment a month to the debt-relief corporation. One method some debt counseling services use to collect “donations’ is to keep the first month’s payment as a fee. So, your first payment is swallowed whole by the company, and you missed your first month’s payment on your new plan. Also, when you make your second payment, the debt-relief agency may not forward your money on to your credit card company for tip to 90 days. What happens in the time? Your creditors are harassing you at an ever-increasing pace and your credit, if it wasn’t in good shape before, is now completely trashed.

Why you should avoid profit credit consultant?

The first I suggested that you have to avoid the profit advisor. Many of credit advisor are scammed and cheated you. They come in three basic types:

1. Companies that provide a series of seminars that run $100 or more, that told you secret debt elimination.
2. Debt-restructuring companies that charge as much as $2,500 to take over the servicing of your debts.
3. Bankruptcy lawyers who run those tasteful television ads with the blinking graphics saying, “Stop the debt collectors in their tracks!”

The seminar is always told you that they have a secret to eliminate credit card debt but their secrets still basic following.
1. Stop charging and start paying cash.
2. Consolidate your debts to the credit card with the lowest interest rate.
3. Pay more than the monthly minimum on your cards.
4. Try to negotiate a lower interest rate with the credit-card company.
5. Consider a low-interest home equity loan to pay off the high-interest credit card.

You pay $100 for seminar but you receive about $30. The first two: you have to pay cash for reduce your debt, and you should consolidate your debt into the lowest rate. Don’t forget that credit-card companies often charge a fee for consolidation service that can be up to 6 percent of the balance that you will consolidate. You must consider both the lower interest rate benefit and consolidation fee. If not economical, you should don’t do it. I suggested that you should keep only one credit card for your convenience that you don’t carry cash too much when shopping, but don’t use in amount greater than your ability to pay, I usually use checking account that I don’t pay more amount of checking account I have.

The third is paying more than the minimum – that is basic technique more payment, lower cost. But the problem is you don’t have enough money to do so. The next method ‘negotiate lower interest rate’ sometimes works but subject to your credit card companies. The last is try home equity loans which lower rate and tax-deductible. This way also breaks your investment strategies because your homes as asset that will generate future cash flow but you use your asset to financing your credit card debt.

The second type of profit advisor is Private debt-restructuring companies that you pay to take over the whole process of paying off your creditors. They usually take a portion of interest saving that they can reduce as a fee; for the typical debtor, the fee will exceed $1,000 and may be as high as $2,500. This restructuring process can do by yourself and don’t pay more money to credit consultant. Moreover, some credit repair company is scammed which you should avoid.
The last type is the bankruptcy lawyer. I believe that you ever seen them in TV advertising, a smiling bankruptcy lawyer told you to hurry up and declare bankruptcy before the law changes and it becomes too late! So avoid all of these profit advisor type.