Debt Consolidation Credit Counseling Helps You See your Way Forward

Death and taxes are supposed to be the only certainties to life. Well, dealing with debt really needs to be added to that list; as we are all faced with bills on a daily basis. And, for some people, they need debt consolidation credit counseling to get them through the tough times of their financial life.

One very good aspect of dealing with debt is that many of these counseling services are free; many debt consolidation credit counseling firms are non-profit.

How Do You Find One Of These Debt Consolidation Credit Counseling Companies?

If you are lucky, there will be some listed in your local phone book. If not, do not worry; the Internet will be your salvation. Just go online and use a search engine like Yahoo, Google, or even good, old MSN. Any one of them will pull up a plethora of counseling firms for you to choose from.

Next, gather all your financial information together. If you are truly serious about getting debt consolidation credit counseling, then they are going to have to have all your financial records: credit card bills, mortgage statement, car payment books etc.

Now, be careful in picking out a counselor. As I said, many are non-profit and charge no fee for what they do. But, others are not; and not all of them are good, decent companies! So, follow the old axiom: caveat emptor – buyer beware.

What To Do When Meeting Debt Consolidation Counselor?

Once you meet with the counselor, they will have to review your entire financial situation in order to proceed with the debt consolidation credit counseling.

This means giving them information on things like: what cable system you have, and what its monthly bill is. What newspapers you subscribe to? Do you belong to a fitness club? What is your typical monthly grocery bill? Do you have any children, and what are they involved in? If you have a son who plays hockey, you probably have to pay for lessons and/or equipment. A daughter taking piano would be another matter to mention.

Once the counselor has all your information, he/she can draw up a plan to help you consolidate your debt. Sometimes it can be as simple as contacting your credit card companies and setting up a re-payment schedule.

On the other hand, if you are way behind on your payments, if your house is about to be foreclosed on, if the finance company is trying to repossess your car; then other action may be needed.

What If I'm Filing for Bankruptcy?

Sometimes, debt consolidation credit counseling means drawing up a plan to go to court to file for bankruptcy. The counselor can go over all the details on that. But, in a nutshell, it means that all your debts are consolidated into one lump sum payment that is administrated by the court.

On the plus side, it is interest-free. Yet, it is important that you make the monthly payments on time, until the debt is completed paid off. To fail to do so may mean loosing everything you have!

Finally, if you are considering getting some debt consolidation credit counseling, do not wait until you are on the verge of “going under,” financially speaking. By then, it is really too late for a counselor to help you. No, you must seek out help before things get so bad that you can’t negotiate with your creditors to find a solution that is mutually beneficial.