Right now, it is all too common for individuals to be in debt to the point that they need to enlist outside debt management help to be able to resolve their debts. Not only can the debt be overwhelming, but the stress of dealing with the problems associated with these debts can be debilitating. Along with all this, you have to try to come to a decision on how to manage your debt. You also have to be concerned about reliability when it comes to letting someone help you manage your finances.
Credit counseling is one of the best ways to get debt management help, but if you are seriously past due (more than 3 months), it might not work for you. Debt counseling has an enrollment fee of $50-$75 and a monthly fee of $30-$50. This may sound expensive, but it you consider that most of your interest rates are going to go down to 10% or less, $30-$50 is a steal.
Your lenders will interact directly with the credit counseling organization. You will make one payment per month to them and the credit counseling service will disburse it to your lenders as required. Your interest rates will be reduced, your fees will be eliminated and your collection calls will stop. The important thing here is not to enter into an agreement that you cannot fulfill. Two percent of you total balances will be the monthly amount you will be required as a payment. Depending on your total debt, your debt management plan will take 3-7 years.
Debt management help through a credit counseling service can be what you need if you feel you are becoming overwhelmed with debt. However, this is probably not going to work for you if you have are not able to make the 2% payment each month or if your debt is more than 3 months past due. Bankruptcy and debt settlement work best for this.
A credit counseling company is a place to begin. Many credit counseling companies offer debt settlement also, because it is needed at this time. These also offer budgeting help and financial education.