The Ins and Outs of Getting Counseling for Debt Consolidation (cont.)
Contributed by Melanie Vannuys
When you choose a company or counselor to work with, they will work with your creditors on your behalf to negotiate pay-off amounts, interest rates, and establish priorities. The plan will be something that both you and your creditors can live with. Sometimes the credit counselor will even get your creditors to waive late and over limit fees to help lower your balances.
Once all of the legwork is done, and you and the creditors agree to all of the terms, you will then make one payment to the credit counseling company, who in turn disburses the funds to each of your creditors. Pretty simple, huh?
Are All Debt Consolidation Counseling Services Reputable?
Sadly, no. There are some companies out there who will try and take you for granted. The industry is scattered with unscrupulous people who want nothing more than to take your hard-earned money and head for the hills.
The best way to avoid being taken advantage of during your search is to limit your search to companies that are accredited through the Association of Independent Consumer Credit Counseling Agencies and/or the National Foundation for Credit Counseling. The companies who are affiliated with either of these two agencies are likely to charge you a nominal fee and give you the advice and support you need.
