Debt Consolidation

Custom Search

Debt Consolidation
Debt Relief
Debt Consolidation and
UK Debt When
Bankruptcy - The
Debt is The
Credit Repair -
Craving For Financial
Learn The Five
Learn The 15
4 Simple Ways
Use A Debt
You Can Make
The Debt Free
Tips To Take
Stop Debt Collectors
How to Get
Reducing Debt Before
Debt Recovery Can
What Are The
Purchase Your Future
Debt Relief with
Drowning in Debt?
What the Mail
Five Major Ways
Free Quick and
Free Quick and
Creating A Realistic
Hide That Car!
Dealing with 'Thing'itis
Should You Invest
The 5 Secrets
Mr. Cheapie's Frugal
Start Small and
Debt Collectors; And
Bankruptcy, Is It
Top Ten Reasons
Debt Consolidation
Debt Relief
Do You Need A Debt Counselor?
by Roger Sorensen
Last year nearly 1.5 million consumers turned to the bankruptcy court system to seek relief from their debts. Much of that debt was consumer debt racked up on credit cards. Medical bills were the second largest cause of debt.Along with t

Last year nearly 1.5 million consumers turned to the bankruptcy court system to seek relief from their debts. Much of that debt was consumer debt racked up on credit cards. Medical bills were the second largest cause of debt.

Along with the rise of bankruptcy cases there is a veritable explosion of nonprofit credit counseling agencies seeking to "assist" consumers with their debt management. Unfortunately, the name does not always describe the company these days.

Some state regulators and even the IRS are starting to investigate these counseling companies for fraud and other corporate no-no's.

Example 1: Nonprofit company A is hooked up with for-profit company AA. When a client comes to company A, they pay a "voluntary" fee and then are set up with company AA which makes them a debt consolidation loan. Ergo, no counseling took place, lifestyles did not change, and the consumer will be back in credit card trouble again within a few short years.

Example 2: Nonprofit company C sets up an easy-once-a-month repayment plan for the client. The fee for this plan can range from a small "contribution" to equal to one months repayment amount. Then the company fails to pay the bills on time, or at all, and the client winds up with a worse credit history.

What can you do to protect yourself from these for-profit nonprofits?

Call the Better Business Bureau and see if the credit counseling agency has any complaints lodged against it. Also check out the website for National Association of State Charities Officials and find the state agency charged with oversight of charitable groups in your area. Are there any complaints on record?

Don't rush and fail to read your contract and make sure you understand every word. If you don't understand what the contract says, don't sign it.

Get all oral promises in writing, avoid outrageous claims and don't believe claims that creditors settle for less than the full amount owed. Many creditors are requiring more stringent scrutiny of debtors before even reducing interest.

Watch the hustle about "voluntary fees". Either a fee is required, or not. Pay attention to the monthly service charges for the DMP - debt management program. If the non-profit company requires an upfront fee equal to one month's repayment, go somewhere else.

After you do sign up for a DMP, check with your creditors on a regular basis to make sure the company is doing what they promised and paying your bills on time. Even if you are with a debt management program, when the creditor doesn't receive their money, the damage is done to your credit report.

Hopefully, the IRS will soon weed out the bad companies from the legitimate counselors. The time estimate is from a year to more than five, and that's if the companies have not met the letter of the law and are blatantly breaking a law. Until the bad apples are shut down you have to do your homework and find a good counseling organization that will help you set up a budget to ensure that you can afford the repayment program.

When looking for a debt counseling company, I recommend that you go online to, and type in Consumer Credit Counseling Service (CCCS) plus your state or city. This will help you narrow your search down to the members of the Consumer Credit Counseling Service in your locality. Also, you can look at which is the website for the National Federation of Consumer Counselors, many of whom operate under the label of Consumer Credit Counseling Service. This label is a term used only be accredited agencies who are true non-profit agencies legitimately operating for the good of the debt burdened public.

One final word of warning, if it sounds too good to be true, it probably is. When you seek a consumer counselor to help you set up a debt management program, don't sign anything unless they actually counsel you and help you set up a budget you can live on and still make the monthly payments to pay off your debts.

Roger Sorensen

America's Financial Guide can be found at ==> Subscribe to Money Basics via - Are you ready for financial freedom?

The site is not responsible for any content in it. E-mail: alldir[at]gmx[dot]com
debt consolidation, home loan, mortgage, debt free, debt help, refinance, equity loan, unsecured, secured debt, bankruptcy, credit card , bad credit, payday, cash advance, cash settlement, line of credit, student loan, interest rate, borrow money, car loan, adverse credit, compensation, quote, credit score, consolidate debt Balance of Winona township Graceville Nelliston village Trenton West Point Moore Station Boggs township Bryan township Wellsville borough Greenville Burtchville township Creston village Fitzhugh town Balance of Oxford township Wills Point Fairfield town Balance of Athens township Linn township Mayfield Pound Ridge town Sherman township Hocking County Baldwin Park Nokay Lake township Turtle Creek borough Odum Telfair County Oak Park town Yankton County Bucyrus USA UK Australia Canada Wake Island Uruguay French Southern and Antarctic Lands Jamaica Papua New Guinea Anguilla Guinea-Bissau Laos Indonesia Spain Kincardineshire Monmouthshire Denbighshire Merioneth Carmarthenshire Kent Sussex Sutherland Monmouthshire Renfrewshire District of Columbia (DC) Delaware (DE) Mississippi (MS) Tennessee (TN) Montana (MT) Maine (ME) Washington (WA) Nebraska (NE) Virgin Islands (VI) Florida (FL) Puerto Rico (PR) Delaware (DE) Texas (TX) Oregon (OR) Federated States of Micronesia (FM) New Mexico (NM) Indiana (IN) Nebraska (NE) Vermont (VT) Federated States of Micronesia (FM)