Before you try consumer debt counseling, follow these tips.
Consumer debt counseling can be useful in some situations, if you’ve become so deeply buried in consumer credit card debt that you’re behind in your payments and starting to get calls from credit card debt collection agencies.
"Probably the very best thing my earnings
have given me - is absense of worry.
I have not forgotten what it feels like to worry
whether you'll have enough to pay the bills.
Not to have to think about that any more
is the biggest luxury in the world.”
- J.K. Rowling |
However, before you pay for any sort of debt relief counseling service, here are some free tips to follow when dealing with your creditors.
- Talk to them!
It may seem like you’re dealing with a huge, faceless corporation, and for the most part, that’s exactly the case - but that doesn’t mean it won’t help to explain your circumstances to them one-on-one.
Decisions are still made is most cases by customer service representatives, not computers, and it can make a difference if they understand your specific circumstances and your willingness to repay what you owe.
- It doesn’t hurt to ask.
Many credit card holders are surprised to find their interest rates being lowered simply because they asked. If you’ve accrued late fees or over limit fees, ask if they’ll lower your interest rate to assist you in your efforts toward executing your consumer debt relief program.
Point out that you’d be better able to get your account back in good standing if your finance charges weren’t so high. The worst that can happen is they might say “no”.
- Get it in writing.
If they agree to make some special repayment arrangements for you, ask if you can have that in writing. Keep track of your phone conversations with them, including when the calls were made and whom you spoke with.
- Beware of how some solutions might affect you.
A good consumer debt counseling service will inform you if a creditor agrees to settle your debt for less than you owe, the IRS might consider the difference as “income” and tax you on it.
Check to see if that’s the case before agreeing to anything, and decide whether it’s still worth it.
- Read your mail.
Credit card companies send a lot of mail, including plenty of unwanted applications for new credit. But they may also be sending important information regarding your account with them.
There might be legal notifications such as a notice of intent to garnish your wages. Pay attention to what comes in the mail.
If you’ve followed these steps, it will make consumer debt counseling that much easier, because you’ll have already established good relationships with your creditors.
Consumer debt counseling won’t always solve every problem, but at the very least you must can do your part to make it go more smoothly.
"Money and success don't change people;
they merely amplify what is already there."
- Will Smith, Actor |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
