Credit and debt counseling is a process offering
education to consumers about how to avoid incurring debts that
cannot be repaid. In the late 1980s and early 1990s, the number
of credit and debt counseling agencies in America increased significantly.
Credit and Debt Counseling Info & Advice:
- Credit counselors refer to the terms dictated by the creditors
to determine payments or interest reductions offered to consumers
in a debt management plan.
- Only time, a conscious effort, and a personal debt repayment
plan will improve your credit report.
- Your credit card balances have a direct impact on your credit
score.
- If you’re not disciplined enough to create a workable
budget and stick to it, work out a repayment plan with your creditors,
or keep track of mounting bills, consider contacting a credit
counseling organization.
- Debt counselors should be certified and trained in the areas
of consumer credit, money and debt management, and budgeting.
- RESEARCH so that you understand consumer credit counseling
and debt consolidation credit counseling.
- Use low-interest credit cards for bill consolidation for
credit repair and avoid bankruptcy using proven, debt management
techniques.
- If you are considering filing for bankruptcy, you should
know about one major change to the bankruptcy laws: As of October
17, 2005, you must get credit counseling from a government-approved
organization within six months before you file for bankruptcy
relief.
- Dispute negative items on your credit report directly with
the Original Creditors.
- As a smart credit card user, you know that higher interest
rates mean you'll end up paying more in finance charges if
you don't pay your balance in full every month.
- By law, credit repair organizations must give you a copy
of the “Consumer Credit File Rights Under State and Federal
Law” before you sign a contract.
- After the information provider receives notice of a dispute
from the consumer reporting company, it must investigate, review
the relevant information, and report the results back to the
consumer reporting company.
- A good credit score is vital if you want ever plan to buy
a house, buy a car, get a job, or even get a cell phone.
- When negative information in your report is accurate, only
the passage of time can assure its removal.
- The goal of debt settlement is to obtain the lowest possible
monthly payment by getting you debt free in the shortest time
possible; a far better alternative than bankruptcy.
RESOURCES: Credit and Debt Counseling
FTC Bureau
of Consumer Protection - Consumer Information: Credit & Loans
Credit Report
and Score Information from Experian.com
TransUnion
- Check Your Credit Report and Credit Score Online, Instantly
and Securely
Equifax
Products: Credit Reports, Credit Scores & Identity Theft
Protection
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Personal Finance
Money Tip: Avoid debt to the extent possible. Student loans
and mortgages can be "good debt", but even then, make paying
them off a priority. |
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