Where can I find some debt advice?
Some may need credit and debt counseling. Here is some cool advice you can use to aid you in your debt situation. I can't imagine that credit counseling is a new phenomenon!
Don't get discouraged! Why not get help before it gets worse.
See if you can visualize this setting in the old West. Some gnarled, bow-legged cowboy comes into a saloon and sidles up to the counter, ordering his normal brew.
He tells the bald and plump bartender that he is up to his stirrups in debt and doesn't know what to do about it! The bartender leans confidingly toward the cowboy and suggests that...he sell his saddle!
What kind of silly suggestion is that? Without a saddle, he can't make a living! Believe it or not, in today's society, when you seek credit and debt counseling, you often get suggestions just as nonsensical!
Don't get overwhelmed like this woman with her head on a pile of bills. Lift your head up and take action right away.
You might even be pressured by unethical individuals to donate "voluntarily" to their "nonprofit" organization in order to utilize their services. I guess the idea is that you will get out of debt by paying them money which you could have used to pay your debts! Be on the lookout for these types of companies!
On the flip side, there are many for profit and nonprofit debt and credit counseling companies that are legitimate and helpful. Do your homework by researching these organizations and asking for referrals.
For profit companies will charge a fee for their services. Good debt management and credit counseling services will take the time to review your finances and debts with you. They will help you prepare a budget (Scary thought!) and explain the necessity to stick to it!
Therefore, a reasonable budget and your new resolve will keep you in line and keep you from having to sell your saddle in the future.
However, what about the debt you have accumulated to date? How does that "go away"? Well, your credit counseling and debt management company will include in your budget the payment of your outstanding debt and, in time and with regular payments, it will "go away". The representative/bartender from your consumer credit and debt counseling company may suggest a debt management plan (DMP).
A DMP is a negotiated agreement between you and your bartender (Oh, sorry, I meant your debt and credit counseling service!) where it is agreed that this service company will attempt to negotiate some changes to help you. You agree to pay your unsecured debt (credit cards, student loans, etc.) on time without using or requesting additional credit.
Not requesting additional credit is important! Remember you are seeking help to get out of debt. So these companies want to see that you are serious and won't make it worse.
Here are some things these services may be able to do for you:
If your debt management and credit counseling company suggests a DMP, they will require you to deposit each month an amount which represents the monthly payment of all your unsecured debt.
They will then pay all of your monthly unsecured debt payments from this deposit. This is how the already accrued debt "goes away"! And, the budget is intended to keep you from being in debt again!
One young couple I knew, found themselves in need of such a service. Shortly after they were married, they accumulated so much debt they were unable to function on their current incomes. They enlisted the help of a credit and debt counseling service.
The company really did wonders for them! Once the negotiations were done, the couple were actually able to live on what they made each month. But, they had a temptation to go borrow again! Having this agreement in place prevented them from taking that step!
Now they have their own home and are being more cautious about using credit! Seeking help was embarrassing for them but it was truly worth it!
Have a Question is a good way to ask any questions you may have. So go ahead...pick my braid!
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