If you are looking for debt relief options, credit counselling services can help. Credit counsellors work with consumers to establish a clear picture of their current financial situation and discuss goals moving forward. Credit counselling sessions can take place over the phone, online, or in person. During an initial consultation, the consumer will need to provide basic financial information to the credit counsellor, including pay stubs and credit card statements. Counsellors can also help consumers put together a monthly budget. Once enrolled in a debt management plan, a credit counsellor will contact your creditors and arrange for a monthly payment that works with your budget. Throughout the process, your credit counsellor will contact your creditors and negotiate with them for a reduced interest rate and lower monthly payments. Once the plan is underway, you will pay a minimal monthly fee to the credit counsellor. The fees are based on the total amount of debt and your personal financial situation. You can get more details here on debt management When choosing a credit counselling agency, it's important to research the credentials of the company. Look for the National Foundation for Credit Counselling (NFCC), which holds regular audits of its members. In addition to conducting regular audits, NFCC also offers educational workshops and reading materials to consumers. If you're interested in using a credit counselling service, make sure to find one that is accredited by a national association. If you're in Quebec, credit counselling services are offered through the Association Cooperatives d'Economie familiale (ACEF). Consumer credit counseling is 100% voluntary. While most counselors tell you to include all of your credit card balances, you may want to leave out any unused cards. This way, you'll be able to add them back later. While enrolled in a debt management plan, the accounts will be frozen during the enrollment period. And most credit counseling agencies offer follow-up sessions. If you choose to enroll in a debt management plan, be sure to consider the length of the program. Most debt management plans last between 36 and 60 months. The ACCC recommends choosing a nonprofit credit counselling agency. This agency only contacts individuals who request them. Choosing a nonprofit agency is an excellent choice as they're not paid for their services and have high standards. You can also find a nonprofit credit counselling agency that offers free educational materials. And if you're looking for debt relief, make sure it's accredited by the Association for Financial Counselling and Planning Education (AFCPE). You can learn more here on debt mananagement. Once a credit counsellor has mapped out a repayment plan for you, they'll negotiate a debt management plan with your creditors. This plan will consolidate all of your debts into one manageable payment that you can afford. Credit counsellors also work with your creditors to eliminate fees, lower interest rates, and extend payment dates. Once the debt management plan has been approved, the credit counsellor will work with you to create a budget and payment schedule that you can manage. Here is a post with a general information about this topic, check it out: https://en.wikipedia.org/wiki/Strategic_bankruptcy.
0 Comments
Leave a Reply. |