When you are grappling with debt, you are sure to hear about myriad ways to clear your debts. However, of all the ones that sound promising, how do you distinguish which one is legitimate and which ones you must stay clear of? These are important questions that you must be aware of. To help you answer these queries, we have put together this guide. One great way for debt relief is credit counseling.
What is credit counseling and how can it benefit you. Read on to find out more.
Getting Started with Credit Counseling
The first step to credit counseling is to find a trustworthy credit counselor like Doyle Salewski. Credit counselors are your allies when it comes to going debt free. They help you chart a plan to pay off all your debts. To do this, they first analyze your current financial situation. crfonline.org states that a reliable credit counselor is one who not only helps you pay off your debts. He or she should travel the extra mile to provide you with a sound money management plan for your future.
Credit counseling can be really uplifting and will help to boost your morale and self-esteem, when you have the right credit counselor. Remember that for the process to work out to your benefit, you have to be upfront and disclose your true financial situation to the counselor. Do not feel embarrassed and try to hide vital details about your situation, expenses and income.
The Difference Between Credit Counseling and Debt Management
Debt management and Credit Counseling are often used interchangeably. However they do not mean the same. Credit counseling refers to the sessions where a financial counselor looks at your financial situation and offers you strategies and plans, to make your finances work in the best way possible. On the other hand, debt management is the process of handing over your finances to a firm so that they pay the monthly payments to your creditors and help you get freed from your debts.
A Debt Management Plan comes with its own set of pros and cons. It costs you more than credit counseling and you have to handle over your finances to your credit management company. Instead of paying your creditors month after month, you just make a single payment to your credit management firm every month. The firm then distributes your payments to all your creditors. The biggest advantage of a debt management plan is that it saves you a lot of stress and hassle-free. You no longer have to deal with each and every one of your creditors. The firm you have hired does that for you, saving you from worry.
A reputed credit counseling lawyer or firm reveals the entire fees up front. They reveal this amount even before you reveal your financial situation. So always make sure that you enquire the fee before you sign up for a debt management plan or credit counseling. Also, don’t enroll with a particular firm before checking out the trustworthiness of the firm or the people who handle it.