What is Financial Counseling All About?
Most people in Seatac, Washington who are struggling with harsh financial troubles due to debt have successfully made use of financial coaching and counseling services. While it is often mentioned in the same breath with debt negotiation it is really quite different. If you work with a credit counseling service you will have your own personal credit counselor who will serve to help you to get out from under your debt. They can help get your debts paid off to ensure that it is easier for you to make your monthly payments. You could be paying a single lump sum each month and it should be smaller than the sum of the payments you were making previously.
If you are sick and tired of debt collectors calling you along with terrified of the debt collector letters you keep receiving, then credit counseling just might be for you. Washington and federal law is on your side. You have the advantage of the Fair Debt Collection Practices Act and the laws of Washington to protect you from unfair practices.
There is a right way and a wrong way to deal with credit counselors. Millions of people have been taken in by get rich quick scams, don’t you let yourself become one of these victims.
Any offer that tries to offer you an overnight solution should be thrown out immediately. There is no over night fix for bad credit. It is going to take some time before you are back on top. You want to look for trustworthy companies that have been accredited by Operation Care Financial Coaching.
Once you have found a really good service you will have to make an appointment so that you can counsel with them. The coach will need documentation of all of your debts, you need to show the coach everything because that is the only way they will have the ability to work out a solid debt snowball plan for you.
Now it is up to the credit counselor. They will then let your creditors know what is what and explain to them that you are having problems and they are there to fix it. They will work with the lenders to come up with a plan that you can cope with, one that comes with smaller payments and lower interest rates.
If you want, some credit counseling services will allow you to send them a lump sum payment that they will make sure gets to the creditors each month. This is referred to as a debt management system. While this is a handy tool, these services have been known to be late occasionally with the payments and this is something that you want to avoid. Late or missed payments will do even more damage to your credit report. What you need to do to avoid this problem is really check out the service and find out what dates they plan on mailing out any payments.
A credit counseling service that is running a scam will ask you for huge fees up front before they do anything at all whereas a reputable company will only charge you about 14 bucks a month. That is one of the best ways to tell the true services from the greedy scammers.
While dealing with credit counselors may not be perfect, if you are in serious trouble due to your debt and you just can’t deal with it anymore, it might just save your life.
Credit Repair Through Credit Counseling
By managing these debts properly, you will maintain a good credit rating which will allow you to continue to receive credit in the future. If you fail to make timely payments towards your loans – or worse, you let them go in default – you will find yourself stuck with a poor credit rating, which will rob you of many economic opportunities. In order engage in credit repair, you must slowly build your credit rating back up again.
In general, credit counseling is performed by non-profit or for profit agencies, and is not to be confused with for-profit credit repair companies. In the past credit repair companies had a reputation for being scams, especially those ones who advertise quick fixes.
In contrast, a financial coaching or counseling service, like OperationCare.com, will provide advice and in a context that precludes a profit motive. This is the most effective and most intelligent way to engage in credit repair. To deny that rebuilding your credit rating will be a long process requiring time and discipline is to do yourself a disservice, and a credit counselor will help you make the long term plans and decisions you need to in order to engage in effective credit repair.
Most good debt counseling organizations will provide you with advice and workshops, as well as educational materials. They will help you learn to both make and stick to a budget, which over the long-term will be extremely beneficial to your credit rating. They will also be able to provide you with one-on-one counseling, so you can examine and learn to make good economic decisions based on your particular credit experience.
The problem with a few credit repair services – and the main reason many are suspicious of them – is that they propose a quick, one size fits all solution. Anybody who claims they can quickly repair your credit without knowing anything about the situation is not being truthful. A financial counselor might be crucial in providing exactly the sort of attention that several credit repair companies won’t provide.
Most importantly, in Seatac if you engage in credit repair by using a counselor, your solutions will be more long term, because you will be learning how to manage your budget more effectively, and making permanent changes to your spending habits. This is far preferable to paying a credit repair company that promises a quick solution that is of no educational value to you.
When you want to get the counseling you need to repair your credit and improve your credit report call Operation Care, Inc. at 844-CARE-866 or 844-227-3866.