Rules of Debit and Credit
What are The Debit and Credit Rules
Credit Counseling services require a fee and have no more power than you do. Create a simple budget. Organize and prioritize your debts then call each creditor to discuss a new payment plan.
When using a Credit Counseling service, the chances of a negative impact on your credit report is higher than if you called the creditors and handled it yourself. If your jurisdiction requires licensing for credit counseling agencies, there may be exemptions.
For example, some states do not require non-profit agencies to be licensed, and some do not require licensing of agencies that perform only free services. If you find that an agency is not licensed, ask the regulatory agency if there are applicable exemptions to licensing.
Do your own research. There are a lot of options (i.e. debt management, consolidation, and debt negotiation) for people with debt problems.
If you take time to learn more about these options you’ll benefit more from your counseling and you’ll be able to make informed decisions about your counselor’s recommendations. You can never know too much, but if you know too little, you’re just asking to get ripped off.
You can also be your own credit counselor. Once you make the decision to be debt-free and live on a cash basis, cut and throw away your credit cards, then call each of your credit card companies and negotiate a settlement.
Pay off the amounts you negotiated, and enjoy your freedom. If you have a Significant Other, support each other in this endeavor and you’ll both reap the benefits.
Credit counseling can work wonders to help you get out of debt, but it’s not effortless. Your counselor can help you make a budget and work out a payment plan, but it’s up to you to follow through.
If you decide to go it alone be aware that most creditors will be interested in getting their principal back. That is, they want the money from the cost of the original purchase.
If you explain that you are willing to pay off the principle in fixed amounts and that you may have to declare bankruptcy if you have to pay finance fees the creditor may be willing to wipe any interest.
You must be willing to stick to a payment plan to make this option work. If you break the agreement the creditor will no doubt reinstate all interest charges and possible late fees,etc.