Credit Counseling Services

Welcome to our Credit Counseling Services mini website. Here you find a discussion about credit counseling services, and from this discussion you will be able decide if a credit counseling service is a viable option for you. Here you will also find a directory source when seeking credit counseling services, videos about credit counseling, a chat room about credit counseling and related topics, and current news about the credit counseling service industry. Here we also provide book store consisting of publications only about debt management. Given your financial situation, should you seek the services of credit counseling? Here we will attempt to answer this question.

What is a credit counseling service? A credit counseling service basically consists of two parts. One part involves educating the individual in terms of proper financial management principles, with the goal being to prevent the incurring of unmanageable future debt. This educational component of a credit counseling service is very important, because without it, an individual who is not educated in proper financial principles will continue those deleterious financial habits which brought them to their current unmanageable level of debt. The other part of a credit counseling service involves active involvement of the company in terms of negotiating with creditors basically to reduce interest, fees, and payments, with the objective being to set up a Debt Management Plan (DMP) which is acceptable to the debtor, and concomitantly acceptable to the creditors.

When seeking a credit counseling service, it is very important that the company you select is one which provides both sides of the coin of credit counseling. Education for the client and the development of a DMP. The development of a DMP may also involve the consolidation of payments into one manageable payment. A good credit counseling service will provide this debt consolidation component as needed by the client. DMPs with a concomitant debt consolidation are particularly beneficial for the individual who has incurred unmanageable credit card debt. Credit card debt, and any other unsecure debt are served well by a DMP.

When should you seek a credit counseling service? It is important to note that some people are so far in debt that a credit counseling service may not help. Remember that a creditor will only allow a certain degree of reduction in the amount paid to them per month. The following are good reasons for seeking the services of a credit counselor:

• In terms of credit cards, even the minimum payment is to much for you to pay per month.
• If you are consistently late paying one or more bills.
• Continuous daily calls from creditors and or collection agencies.
• Your own negotiations with a creditor have not yielded an acceptable repayment plan.

If one or more of the above apply to you, you should seek a credit counseling service. The next question is, how do you select a viable credit counseling service, one which does not have a shady past and one that can truly meet your needs? It is important to remember that there are at the worst, credit counseling services which are out right scams, and some which operate on the edge of the law. There are over 1,000 companies in the United States which provide credit counseling service. The demand for these services is very high. Especially in the present time where subprime lending by mortgage companies have put many people across the United States in a deleterious financial situation. Given the high demand for credit counseling, you will find unscrupulous operators who prefer to do business with the individual who is in desperate need of a credit counseling service.

When selecting a credit counseling service, make sure they are a member of The Association of Independent Consumer Credit Counseling Agencies (AICCCA). The Association fulfills its mission by establishing a consensus among consumer professionals regarding service standards. This agency lays down specific industry standards, and the credit counseling service company must meet these standards in order to become a member. The application process for membership into the AICCCA is extensive, and involves several steps including a provisional initial membership determined by a committee, and a 90 day proof of standards by documentation, followed by possible full membership. Given the high standards required by the AICCCA, you can be assured that any credit counseling service which meets these high standards would be a viable choice when selecting a credit counseling service.

To find a credit counseling service which complies with the AICCCA standards, go to Find a Counseling Agency.

Credit Counseling Services - Conclusion

In conclusion, a credit counseling service is a viable option for those individuals who are unable to resolve their current financial debt. If you are unable to work out a viable repayment plan with your creditors, and you have a history of financial mismanagement which you can not seem to resolve, then credit counseling may be an option to consider. When selecting a credit counseling service agency, first and foremost you need to make sure they are a member of AICCCA. AICCCA assures that certain industry standards are meet. Remember this, in order for a credit counseling company to offer their services to the public, they do not need to be a member of AICCCA. Therefore, when selecting, make sure they are a member. Those credit counseling service agencies which are listed in the AICCCA directory are members. Also, make sure you shop around when a seeking a credit counseling service agency. Given the high number of credit counseling companies available, you should be able to find one which meets industry standards and concomitantly provides pricing which does not further exacerbate your financial situation.