Consumer Credit Counseling Do I need it To Help Manage My Debt?Put simply, it is is professional advice, with the ultimate goal of helping you, the consumer, understand your finances and assess your debt situation. Many credit counselors can do the following: 1. Analyze your financial situation in detail, including credit card debt, student loans, etc. 2. Help you develop a payment plan for your debt, based on your income. 3. Help you to negotiate a lower interest rate with your creditorsthe people or organizations you owe money to.
Usually, the agency you are working with will establish a Debt Management Plan. With this plan, you will often make one monthly payment to the Agency. They will then pay your payments to the creditors. You are typically unable to charge any more on your accounts while you are involved in the Debt Management Plan. The benefits of a counseling agency are as follows: 1. They can help you avoid bankruptcy. 2. It is convenient, and ensures your payments are made on time to your creditors. 3. They can reduce your interest rates, from 20-50%. 4. They can consolidate all your debt payments into one monthly bill. 
When shopping for an agency, remember you should not have to pay a fee just to find out about the company and what they offer. Also, look for a counseling agency that is a member of either the NFCC (National Foundation For Credit Counseling) or the AADMO (American Association of Debt Management Organizations). Stay away from any company that will not give you a straight answer about what they charge or what they can do for you. Consider Home Equity Loans for Debt Consolidation
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