Debt Management and Debt Consolidation Part 10
by Clifton

During this last chapter, you will know whether do you need any credit counseling or debt consolidation program. Before you pick up the phone and start ringing your credit counselor, you got to try it yourself first. Try talking to your creditors, negotiate with them for a lower interest rate, or allow you to stop paying them for a couple of months. Talk to them at a humble and polite manner, after all you are the one in debt, you can try telling them that your last straw is to declare a bankcrupt. It is worth a try, as some of your creditors may lend you a helping hand by making an appointment to see their credit counselor. If you don't try, you have a 100% failing rate, if you try, at least you have a 50% of success.

If all things fail, remember that they don't create a prison cell for bankcruptcies! In everything there is always a way out. But before you start to see the light at the end of the tunnel, you have to know it is not easy to fight a multi-million dollar opponent, that is your creditor, you just got to take everything in bite size.

If you ever need to see a credit counselor, you have to know what is their scope of work and how they are able to help. Sometimes, they will just tell you the things that I have told you in all the previous chapters. Some good ones will have special designed tools to help you budget or they may even stand in between your creditors and you to negotiate a better deal for you. So if you think that credit counselors are doing that all for free, you are wrong. Credit counselors charges a fee for their work and the time they educate you. But a big portion of the money will come from your creditors, as your creditors will receive nothing if you declare a bankcrupt, your creditors will shave off some of the money you owe and give it to the credit counselor as a way to thank them.

So shopping for a good credit counselor is very important, if you are not careful, they may destroy your credit rating. Don't believe me, let me show you an example. So you sign up for a credit counselor and thought that you are on your way to get out of debt. After paying the fees charged by the credit counselors, you have to pay them monthly payments as deviced by their budget machine. The credit counselors will hold your money without telling you, they will use your miney to roll or invest. Until your creditors start calling for payments then they start paying. Eventually, you will get out of debt as promised but your credit rating will be destroyed by all the late payments. Of course not all credit counselors operate in such a way, there are good ones too. The example above only serve as a caution to you.

I hope this few chapters have helped you in anyway, if you have any queries or am really looking for a credit counselor, there are some good recommended ones on the advertising page, just click on them and it will lead you to their page. Hope you have a successful life and all the best in defeating your debts.

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