If You Opt For
Federal Trade Commission is of the opinion that a good and authentic credit counseling agency provides advises to consumers on debt management, developing a budget and guide in paying down debts too in some cases. All of these together may prove to be of help for those drowning in financial problems.
A credit counseling agency is supposed to guide a debtor in getting an income based and affordable repayment plan through lowered interest rate and waived off penalty fees or late charges.
Benefits of Acquiring Credit Counseling Services
Credit counseling helps you in managing and paying off your debts. If you are still at a loss as to what you should do with regards to getting help of a credit counseling agency, below are the benefits which you can get through them:
1) They negotiate repayment plan with creditors on behalf of you – The counsellor from the counseling agency starts negotiating with your creditors in order to obtain a proper repayment or a debt management plan. Dept management plan involves various benefits, thereby helping you to become debt free soon enough. The repayment plan is based on the level of your affordability.
2) They are going to negotiate to lower the interest rate – One of the greatest benefits of obtaining help from a counseling agency is that it negotiates with the creditors to lower the interest rate. It is mainly because of the interest rate that it becomes harder for you to pay down your debts. With the lowered rate, it becomes easier for you to make the payments.
3) The several debt payments get consolidated as one – You are no longer required to make several payments in a month. As the counseling agencies offer you the payment term after negotiation with the creditors, you are required to make a single payment to the counseling agency.
4) You are no longer required deal with the creditors – As you are required to make the payments to the counseling agency, you are no longer required to deal with either the creditors or the collection agencies. It is the counseling agency which deals with your creditors, negotiates with them, and also disburses the payments to the creditors and collection agency.
5) They help you with maintaining your credit score– Good credit score matters and so it is important for you to maintain one. When you start having debt problems, it has a direct effect on your credit score. It is a good credit score which can help you obtain loans at low interest rates. So, it is with the help of the credit counseling agencies that you can maintain or rebuild a good credit score. This again helps in rebuilding good credit rating.
Therefore, you can see that a credit counseling agency helps you in various ways. It is not only your debts but quality financial management too and advice which you can get through them. They are going to help you in maintaining a good and high performance credit score. With their help, you get to avoid falling into debt yet again as you learn the tricks to managing your finances more responsibly than ever.