How To Get Debt Free With Credit Counseling

When you find yourself swimming in debt, it can be hard to know who to trust and where to turn.  With so many companies offering so many different programs to help you eliminate your debt, how will you know which one to work with?

Start by conducting a search for Consumer Credit Counselors that are accredited by the National Foundation for Credit Counseling.  This foundation has high standards and values for the companies that they work with.  Credit counseling really is a generic term that describes the services provided by a wide variety of companies that vary from region to region.  By looking for a company accredited by the National Foundation for Credit Counseling, you not only narrow your search, you can be assured you are working with the best kind of credit counseling company and someone you can trust.

The credit counselor should go over the program with you.  The programs are designed to help you manage your money, get you on a budget, and help you to prepare a plan for getting out of debt and staying out of debt in the future.  You can help this process by having a list of your debts and bills ready.

This list should include:

• The name of the creditor
• The total amount you owe
• The interest rate for each credit card or line of credit The monthly payment amount
• Include a list of your regular bills as well – including your phone, utilities and an estimate of your monthly groceries, etc.
• You will also need to know your monthly income

All of this information will help the counselor to get a good view of your overall financial situation.  They will then make their recommendation as to what kind of debt management program you should enroll in.  Usually, you make a monthly lump sum payment directly to the debt management program and they, in turn, pay your creditors for you.

It works this way because the credit counseling program managers are usually able to get your interest rates reduced and fees waived for you.  They agree to handle the collection of the payments and get the monies to the creditors on time, acting as go between for you and the companies you owe money to.  These programs usually last for 36-60 months before your debts are fully paid.

Because you do not have to deal with your many creditors yourself, it can feel like a great weight has been lifted off you.  When you follow the advice of the credit counseling company, stick to the budget that you created together and enroll in a debt management program, you are well on your way to living a debt free life!

Warning: Do not apply for or accept any new credit cards while in a debt management program. You could jeopardize your ability to become debt-free and finally live without all that stress.