If you want to have some help to fix or repair your bad debt you can consider taking the help from non profit credit counseling services. As per the report from national foundation for credit counseling nearly 8 million people were came to fix their credit in the last few years. So you don’t need to feel like you are standing alone in these criteria.
Here are some 6 ways which states how a professional from non profit credit counseling can help you to sort out your problem.
- Upfront free credit counseling service
When you approach non profit credit counseling they will offer you a free counseling session up to 90 min for free. In this time they will review and analyze your debt situation, your present financial position. In this session the first question you can expect is what actually brings you here? Further they will talk about your long term and short term goals. This talk will help you to think beyond your current overwhelming debt situation.
2. Financial Reality
Credit counselor will review your income and expenses. They will have a close insight into your debt and the type of interest you are paying on it. Late fees & over the limit penalties you are paying on your debt until now will be also be reviewed. Depending on the detailed analysis they will find out is it enough to change your spending habit or you need to enroll yourself with the debt management programs
3. Creation of new spending plan
One of the crucial thing what a credit canceller can do to you is making a new spending plans for you and let you know how you need to cut your expenses to bring everything under your control. If you don’t adhere to the new budget plan then it will become very difficult to get rid of from your deb
4. Secured and unsecured debt
A good no profit credit counselor review your both unsecured and secured debt. They will make sure whether your all basic needs are met every day and you are living your life comfortably when paying your debt. Finally they will design a perfect plan to deal with your credit card debt and all other unsecured debts.
5. Debt management programs recommendation
This plan will not be recommended for everyone. Some can manage their debt by just doing some alterations in their life style. For those who can’t repay their debt in this way, non profit credit counselors do some arrangements by speaking with the creditor. They will negotiate on the interest rates and term of loan so that you can come out of debt in 3 to 5 years depending on your financial situation.
There are so many who got relieved from the debt by enrolling in such plans.
Mostly what this plan will do is
- Lowering your interest rates
- Creating a 3 to 5 year of loan repay plan
- Negotiate with your creditor to stop imposing you over the limit fees, late payment fees and annual fees.
- Freezing your credit cards until your credit card balances are get paid off.
6. Bankruptcy considerations
According to the national foundation for credit counseling, nearly 10% of the credit counseling clients need to consider for the bankruptcy. When you approach a non profit credit counseling or some other consumer credit counselling service the will make you know whether you are the one in that 10%. As per consumer protection law, creditor cannot file a bankruptcy against you until you enroll yourself with any licensed credit-counseling agency.