The Credit Loans Guide http://www.thecreditloansguide.com Your Source For Consumer Loans & Credit Cards Thu, 15 Apr 2010 23:45:43 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 What are the benefits offered by credit counseling agencies? http://www.thecreditloansguide.com/what-are-the-benefits-offered-by-credit-counseling-agencies/ http://www.thecreditloansguide.com/what-are-the-benefits-offered-by-credit-counseling-agencies/#comments Thu, 15 Apr 2010 23:45:43 +0000 http://www.thecreditloansguide.com/?p=35 If you are in credit card debts, you must contact the credit card companies and inform them about the financial hardship you are facing. You can request the companies to reduce your outstanding debt balance and negotiate an alternative repayment plan. However, if you are not able to negotiate, you can take help of a credit counseling agency. Some of the ways you can benefit by seeking help from a counseling agency are:

Suggest ways to solve problem: A certified counselor of the counseling agency will analyze your financial situation and provide you with suggestions to solve your debt problem. The agency will advice you to immediately stop using credit cards to make purchases. If you use your credit card, you may accumulate further debts.

Help you to prepare a budget: The agency will assist you to prepare a budget based on your monthly income and expenses. They will also help you find out ways to save some money each month so that you can repay your credit card debts.

Fix negative listings: A representative of the agency will negotiate with your creditors and the credit reporting agencies to eliminate negative listings from your credit report.

Negotiate with creditors: The credit counseling agency may negotiate with the credit card companies and help you reduce the interest rate on your cards and waive off late fees.

Designs debt management plan: The counselor designs a plan for you so that you can effectively manage your credit cards and avoid negative items from getting listed on your report.

Advice on delinquent accounts: The agency will suggest you not to close delinquent accounts. If you close your accounts including your other credit cards, it will have a negative impact on your credit score.
A credit counseling agency will not only offer you suggestions to pay off credit card debts but will also help you restore your credit. To improve your credit score, they may advice you to open new accounts and make timely payment towards them. The agency will also educate you on credit rights and suggest you ways to avoid accumulating debt in the future.

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