Is debt counseling a solution for credit repair? Debt Counseling Services and
Credit Services are Organizations that are sponsored by most of the creditors.
Most Debt Counseling services are nonprofit organizations; however there is few
that are on their own. Before you can contact a Debt Counselor you must have
some source of income. The counselor provided you will often contact your
creditors and alert them that you are making the effort to repay your debts.
Once the creditors have been contacted, the organization will next work out an
agreement that works with your current budget. After a decision has been reached
you are expected every month to make a payment toward paying off your creditors.
Your money goes first the organization where you have asked for help, and then
is forwarded to your creditors. Once the creditors receive your money, the
Counselors ask the creditors to deduct a small amount of funds to pay for their
There are some debt counselors that will waive interest on your
balance, however, most counselors won't. If you are unable to meet your
payments every month you might be required to pay late fees. The only real
plus point you have by using a Debt Counseling Agency is that you won't see
bankruptcy on your credit-report although the two are similar. The best solution
then for repairing your credit is taking the ball in your own hands. If you take
back the control that was robbed of you, you have the plus point of getting out
of debt without further complicating your situation. One way of taking back your
control is to set up a monthly budget plan that works to payoff your debts and
leave you enough funds to survive. Survival takes less than most people believe
in the sense we often purchase items we don't really need.
If we purchase
minimal grocery necessities and other necessities we will find more funds
There are multiple solutions for cutting back on house items for
cleaning. Generally, soap and water is sufficient for cleaning your home. Better
yet, if you have laundry detergent you can clean carpets, wash windows, clothes
and so on. One solution is possible to handle multiple tasks; therefore purchasing
multiple products for house cleaning is often a waste of money. The
advertisements that tell you this product works better than the other is often a
gimmick to lower you into a debt.
Another idea is it is possible to cook dinners
that last for more than one day. Also, you could pack a lunch instead of purchasing
out when you are at work or on a trip. If you are taking trips regularly and it
isn't for business purposes, you might ask yourself how you can cut back. When
you cut back on trips you are cutting back on gas mileage, meals, and hotels and
so on. Anytime you can find a solution to cut back you is making effort to
repair your credit as long as you are spending the savings on your bills. If you
are trying to save money for trips or items for your home, you might want to put
this off til you get your bills paid.
Remember when you pay off your bills
first, money will flow more freely for other desires in life. If you are having
hardies meeting monthly obligations contact your creditors and explain your
situation. Many creditors will work to find a solution rather than taking a
complete loss. Be ware that some creditors are greedy and don't really care how
hard times are for you. These types of creditors want money and they want it
now! The best solution then for dealing with creditors is to payoff the most
imperative bill first and work your way through each bill.
If you have bills
that are not all-important terminate them for a short-time til your credit is
repaired. Bills such as cable or satellite, Internet if not used for work and
other entertainments can wait. Bills are a part of our daily lives and avoiding
bills is not a solution for repairing credit. Therefore, Debt Counseling is not
the best solution for eliminating debt.