Questions to Ask a Credit Counseling Service about Debt Relief

Debt relief is a topic on a lot of consumers' minds these days, and with good reason. American credit card debt in 2001 was $692 billion, triple the amount from 1989. In that same time period, the average credit card increase for a middle-class family was 75%. The amounts were even higher for low-income families and senior citizens. At one time, such a high amount of credit card debt would seem frivolous as buyers spent money they didn't have on luxury items such as electronics or jewelry. Today, however, in less stable economic times and a poor job market, more people are turning to credit cards as a way to extend their income. More and more debt is being rung up for everyday items such as groceries and medical bills. How can people get real help with debt relief?

Credit counseling services were originally established by credit card companies who wanted to get at least some of their money back before a client decided to declare bankruptcy. While that may seem shady to some people, for others it is a legitimate way to pay the debt they owe.

When seeking debt relief, however, be wary and be an informed consumer. Do your research before signing on with any one service. Here are some questions to ask:

* How much does it cost? Many less-than-reputable services charge hundreds of dollars to start up, money that doesn't go to any of your creditors.

* Does the service notify credit bureaus about your enrollment in their program? Some do and some don't. Creditors may still elect to put a bad mark on your credit report, but the agency you are looking at for debt relief shouldn't.

* What services are offered? Do they offer a range of solutions from trouble-shooting before finances are a big problem to debt management. Beware of companies promising too quick a solution or promising to "fix" your credit report.

* What are the benefits of belonging to one particular group over another? For example, some services offer newsletters and budgeting tips, all to help you become more stable when your debt is paid off.

* Are they a member of the Better Business Bureau? If that is not advertised, check them out with BBB first.

With time, patience and diligence, you can become debt free.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt consolidation, credit counseling, repair and free debt relief information that you can research in your pajamas on his website.

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Debt Relief Information:

Related Articles

How to Reduce Your Debt in 5 Easy Steps
If you have incurred substantial personal debt, consider these options: budgeting, debt consolidation, credit counselling from a reputable organization and working with your creditors. You will need to choose a debt reduction method that will work best for you? The method you use will depend on your level of debt, how much spare money you have, your level of discipline, and how quickly you want to get out of debt.
Different Ways Of Dealing With Debt
Bills, creditors, debt collectors. Are you yearning for the days when all you had to worry about was the money in your piggy bank? If so, you are far from alone.
Student Loans Can't Be Swept Away Through Bankruptcy
Bankruptcy is in the news these days, as Congress has finally overhauled the Federal bankruptcy law after years of talking about it. The credit card companies, rightly or wrongly, have been pressuring members of Congress to tighten the bankruptcy statutes, saying that too many people were willfully spending money they couldn't repay with the intention of avoiding paying the money back by filing for bankruptcy.
Pay Off Your Student Loans and Reduce Your Debts
Financing a college education is one of the more expensive debts you may incur. Student loans can take years or even decades to pay off.
Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?
Do You Need to Join a CCCS - Consumer Credit Counseling Service?Are you in a "debt hell"? If you are unsure, ask yourself these questions:Do you have bill collectors calling you and home and at work, leaving annoying messages?Are you afraid to open the door in the morning because you are afraid that the Sheriff's office has left a court goody for you?When the phone rings, do you get butterflies in your stomach?If you answer the phone and it's a bill collector, when they ask for you, do you reply "He/She's not in right now", or even just pick up the phone and then hang it up without saying who is on the other end?Do you go for days on end without checking the mail because there are only bills there?When you finally do get the mail, do you just throw it in some random location for weeks or even months without ever opening it?Are you paying one credit card company's bill with another credit card?Are your credit cards riddled with over the credit limit and late fees?Do you only receive high interest credit card offers?Have you applied for credit cards or car loans and been told that you had been denied because of bad credit?Does your credit report show a lot of late payments, charge-offs, bad debt, 30 60 90 or 120 days late entries listed?Does filing bankruptcy seem like your only way out?If you related to at least two of those items, chances are you would benefit from a consumer credit counseling service.Believe me, I know what you are going through.
Personal Bankruptcy: Last Option To Legally Stop Bill Collectors
Do you have stacks of unpaid bills?Are you in debt?Are bill collectors hounding you?Are you frustrated and annoyed and wish to get them off your back?If you answer yes, then pay close attention.Filing for a personal bankruptcy may be the last option for you.
Debt: Dont Pay Your Minimum Balance
Almost all Americans carry credit card debt. Actually, over 40% of US families spend more than they earn.
Should You Invest In Savings Or Payoff Your Debts?
I have faced this financial question 8 years ago and recently I have friends asked me this same question. I think I should write it up so that it may help some of you that having the same situation.
Personal Bankruptcy - If Its Unavoidable, File Now
The Bankruptcy Abuse and Consumer Protection Act, signed into law by President Bush last April, promises changes to Federal bankruptcy law that have been long sought by the lending industry. The bill promises sweeping changes to Federal law, and will make it much harder for the average consumer in financial trouble to have their debts wiped out by filing for bankruptcy.
How Do I Lower My Debt Burdens?
How do I lower my debts?There are several ways of improving your credit status. If you have decided upon taking up firm steps to decrease your debts, then you may consider these few ways for dealing with the situation.
How to Protect Yourself: Debt Collections
So you are getting collection calls? You're desk is full of unpaid bills. You dread answering the phone.
Are You SURE Your A Bad Debt?
Many people who seek the advice and guidance of debt counsellors are driven to them in the first place by fear and ignorance - two powerful emotions which often mask the real scale of the problems.In many cases, what you made have been led to believe is a 'bad' level of debt, may instead need only some careful reorganisation and a new set of mortgage priorities.
Future Secured? Oh Really?
A headline for a retirement annuities flyer declares "FutureSecured!" Was your reaction like mine? Yea, sure!Is our financial future ever that secure? Maybe for a few. But for the majority of us this is not true.
The Road to Debt Relief
Living with debt is not something someone hopes for, but it happens and it usually becomes far more severe than it should before something is done to eliminate it. Once many individuals realize they have a problem with debt, they are too embarrassed to ask for help so they let themselves dive further into debt.
Eight Ways to Consolidate Debt
Next to winning the lottery, a debt consolidation loan is a debtor's dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments.
Credit Repair? Its All Up to You
Log onto to a search engine such as google.com and type in the term credit repair.
Utah, the Nation's Bankruptcy Capital
Congress recently passed the Bankruptcy Abuse Prevention and Consumer Protection Act, designed to minimize frivolous bankruptcy filings and to require debtors to repay some of their debt. Once it takes effect in October, 2005, the law will make it harder for those with problem debt to have their debt wiped away by the courts.
Save Money When Going Out
It seems as though whenever we go out for the night, it costs much more than we originally intended to spend. Having a 'night on the town' shouldn't cost you a whole weeks salary.
Five Hot Tips To Get Out Of Debt Forever
The financial and psychological burden of being in debt causes us and our families continuous emotional stress. That stress eats away at the quality of our lives and leaves us feeling powerless, angry, depressed and helpless.
You Can Make Financial Resolutions Anytime
The New Year often brings with it a desire to right the wrongs in yourlife. From this desire springs the tradition of New Year resolutions.