Guide to Selecting a Credit Counselor

The hustle and bustle of modern everyday living takes its toll on lots of people. If you find yourself living from paycheck to paycheck and are now worried that debt collectors are going to come knocking at your door. Maybe it is time to have a good hard look at the mirror and examine your lifestyle, expenses and the idea of getting a credit counselor to sort yourself out from the money pit you’ve inadvertently dug for yourself.

Meeting with a credit counselor for the first time

 

Most if not all reputable credit counselors are non-profit entities that offer services at brick and mortar establishments or via the internet. It is recommended that you look for a credit counselor such as Consumer Credit of Minnesota that provides in-person counseling. However, it is important to note that the term “nonprofit” does not automatically mean services are completely free of charge. There are some consumer credit counseling organizations that provide premium services with premium fees. Some hide the cost while others might urge their clients to make “voluntary” donations to certain organizations. Here are some tips to guide you on how to select a worthy credit counselor.

Credit Counseling Organization

Begin by looking for a reputable credit counseling organization that can offer you advice on how to manage your money and your debts. They should be able to assist you to work out a budget, and provide free instructional workshops and educational materials. The counselors they employ should be certified and experienced in consumer credit including debt management. They should be able to discuss in detail your entire financial situation and assist you in coming up with a viable plan to help rein in your liquidity issues. Usually, an initial session lasts for an hour and with follow-up sessions as well.

Credit Counseling Meeting

 

A good credit counseling agency must also provide you with free information about their products and services without a requirement from your part to first give them information about your financial status. Any company that requires otherwise is most likely a scam. Therefore, you should seek help somewhere else.
Get a list of at least 3 credit counseling organizations that you are interested to do business with and then perform some due diligence on them by contacting your state attorney general and local consumer protection agency. They can provide you with information regarding any complaints that have been filed against them.

Services

A good credit counselor will give you realistic ways to get you out of debt

Try to look for an organization that provides a good range of services that include budget counseling and savings and debt management classes. Try to avoid organizations that instantly push for a debt management plan as your only choice even before they have given some time about your financial situation.

Offer of Information

Educational materials must be given for free. Those that charge for them you should avoid.

Fees of Credit Counselor

Ask for a specific quote in writing for their services.

Having a good credit counselor will save you more money

Not Able to Pay

In case you are not able to afford the cost, the organization must offer some form of assistance to help you get on the right track. Those that refuse to help because of your inability to pay, avoid them.

Read the Fine Print

Never sign anything unless you have read and understood the terms and conditions of the deal. All verbal promises should be transcribed in writing.

Debt Management Strategy

If your financial woes stem from too much debt or your inability to repay them, a credit counseling agency may probably recommend what is called a debt management plan or DMP. A debt management plan alone does not constitute credit counseling and this approach is not for everyone. Never sign up for this plan unless and until a reputable credit counselor has gone over and reviewed thoroughly your situation and has provided you advice on how to manage your money. Even if a debt management plan is right for you, the credit counseling people can still provide assistance on establishing a budget and teach you some money management moves.

Debt Management Plan

A debt management plan works by depositing money each month with the credit counseling organization. They then use the cash to pay your unsecured debts such as credit card bills, medical bills, student loans and the like. The payment scheme is in accordance with a payment schedule the counselor comes up with you and your creditors. Your creditors might agree to lowering interest rates or even waive certain fees as a result. It is always a wise move to first check with your creditors first if they are amenable to such an arrangement. Keep in mind that in order for a DMP to be successful, you should be able to make regular and timely payments which might take as much as 48 months or more depending on your debt and capability to pay.…

A Brief Overview Of The Financial Services In Case Of A Finance Organization

Financial matters in many cases have found to be in fraud. The main reason behind this is the voracity of the loan providing officers. The problem from the beginning has been an epidemic one. But right now it has been found that it has grown out of the circle. There are many several steps taken by the Government and other financial institutions to prevent the working of the fraud loan officers.

The formation of special teams

A special investigation team has been in action to prevent an ordinary man from getting fraud by these white collar people. The research team has been provided with the order to take all the papers and official documents for a first checking. This particular verification is needed to check the accuracy of the organization or the people involved in the provision of a loan. An ordinary person requires a lump sum amount to buy a house. This house is the asset for the whole life of the people.  Some people need an advance from a money lender to build a home. In many cases, the result found is that of cheating. The money lenders usually cheat those everyday people by providing an enormous amount of interest on the principal money.

As a result, the asset deposited for taking the loan goes missing with the tremendous burden that has been made to pay throughout life. The house also remains in the dream. To prevent this type of problem the investigation team is doing their work round the clock. In many cases, it has also been found that many banks are involved in this type of fraud case. The banks are mainly the loan banks. They used to operate in the rural areas. Rural area people are less aware of the market condition. They need an amount to build their home. The loan providing banks makes the use of those loopholes.

They mainly present themselves as investment providing officer from the bank. A person who is not the people of that area has been referred to as the guy who gives information. After that, some meetings are held with the population of that rural area. The dishonest people then provide hard money to those people.

The money is provided against some valuable things that those people take as a means of guarantee. The rural person does not have an idea of the present market value of loans. In this way, they cheat those people. There is also no guarantee of the rate that is going to be paid after the completion of the work.