The story behind Credit Card Consolidation and Counseling

You may find yourself with too many credit cards at a high interest rate. At that point Americans find themselves at a point where they way to seek counseling.

What Credit counseling programs do, is require the customers to close their accounts at all the credit card companies. They require that the customer make a single payment to the counselling organization, and it sends that payment to all the creditors. The main benefit of this program is that these organizations usually reduce the interest rate on the various credit cards.

You should examnie your options before going forward with any of these programs.

Credit Counseling for Consumers

Military bases, universities, credit unions and housing authorities among others, have nonprofit financial counseling programs. Some are free, some cost money. If you are working with a reputable nonprofit organization, the creditor may accept the suggested terms for consolidation.

Lately, many such organizations were facing scrutiny when it was brought to light that although they masquarade as "nonprofit" their fees are very much "for profit".

Many organizations have local offices, or are throught the phone and interenet. Choose a company that is accredited with TASC, as well as appearing on the Better Businss Bureau as a good company to do business with.

Do not contact credit relief organizations that:

• Charge unexplainable fees to enroll in their program
• Suggest you make "voluntary contributions," (another term for fees.)
• Require you send them a full report on your balances and finances so that they in turn give you a consultation.
• Start enrolling you in a debt management plan (DMP) without analyzing your financial predicament.
• Start enrolling you in a DMP without first teaching you about budgeting and money management skills.
• Require that you make payments into a DMP before they contact your creditors to accept your consolidation program.

Some Common Debt Settlement Resources

Debt Relief - What does it mean?
...Hiring a company to handle your debt situation is not a weak move, it's an extremely smart financial move... Click here to read more

What are the rules for Debt Settlement
...When the help arrives, one thing will always remain with you, that is to not be back where you started five ten or twenty years from now... Read more

Debt Relief 101
...its not a bird, and not a plane, debt relief is a process that will lead you to a goal. That goal is getting out of debt... Read more