Credit Consolidation Services

There are Credit Consolidation Services available and it’s just a matter of finding one that meets certain criteria...

You know something is wrong when you can’t sleep at night because you are worried about how you are going to pay your bills. There will always be times throughout life when being in debt is a struggle, but when it becomes an overnight battle, it’s time to get some help.

Before you do anything, get yourself organized. You will want to gather all your debt and all your income so that you know exactly where you stand. If you have so many unsecured debts that you are unable to keep track of all of them or even make your monthly minimum payments, it is probably time to consolidate that debt. There are credit consolidation services available and it’s just a matter of finding one that meets certain criteria.

The first thing you should do is make an appointment with a credit counseling company. When you are setting up an appointment, there are a few things you need to find out before you finalize a date and time. You should always ask them up front:

• If credit counseling is free
• Are they affiliated with any National Organizations
• What other services do they offer
• What are the fees for those services

If your initial appointment is not free, don’t set it up. Any reputable credit counseling organization will never charge for the counseling side of their services. Once you determine that there is no charge for counseling find out what national organizations they are affiliated with. You will want them to at least be members of:

• National Association of Certified Credit Counselors (NACCC)
• Association of Independent Consumer Credit Counseling Agencies (AICCCA)
• Better Business Bureau (BBB)

Many consumers aren’t aware of the fact that changes in bankruptcy legislation that went into effect in 2005 opened the door for a whole new breed of credit counseling and debt solution companies. The Federal Government mandated that individuals seeking to file bankruptcy under any Chapter must undergo credit counseling within 180 days prior to filing. As a result, a multitude of credit counseling companies popped up virtually overnight. Not all of them are ethical businesses so it is in your best interest to make sure they are affiliated with one or more of the above organizations.

When you ask them about what services they offer, find out if they have credit consolidation services. If they are affiliated with reputable national organizations and offer consolidation counseling and services, then you could probably feel safe setting that appointment.

Your counselor will give you an accurate assessment of just where you stand financially. What he/she will probably do is suggest that you consolidate your credit card bills in order to make one monthly payment. Remember, there is a fee for this service so make sure you understand what you will be paying up front. Also make sure the consolidation company is going to pay your creditors each month from the very beginning and not take their percentage or fees up front.

Professional credit services are able to negotiate with your creditors and can often get your debt reduced. Many creditors will lower interest rates or write-off late fees in order to get paid. Good debt negotiators should be able to get significant savings for you. This is what their fee should be based on.

Once you contract the services of a debt consolidation company you will be paying one monthly payment directly to that company and you will not have to struggle with trying to keep track of all those bills that have been keeping you awake at night. The only thing you will need to do is make that one monthly payment on time and you will be on your way to finally getting a good night’s sleep free from worry.