Introduction
The debt situation in America is at a record high, consumer debt was at $2.4 trillion in the year 2010. This is equivalent to $7,000 per person. 30 percent of all these debts result from credit cards, in fact, 1 in every 10 consumers has above 10 credit cards. 5 percent of all card holders are more than 60 days late in making their payments. It is thus no surprise that debt credit counseling has become very important. Most people seem to be under debt stress, and the number of bankruptcy cases being filed are sky rocketing. Credit counseling services are helpful and provide valuable solutions to people in debt.
History
Roughly 2.5 million people in the US seek debt credit counseling every year. When looking for counseling services, it is important to note that there are many fake companies offering quick fixes and taking advantage of people in debt. How can you tell a fake from a genuine company? A reputable company should be comprised of experienced professionals who understand the ropes. Credit counseling should be more than giving advice on how to spend carefully, save money and reduce expenditure. Counselors should go the extra mile to offer long term workable solutions and explain to you the reasons why you are in debt. One of the easiest ways to fall into debt is through credit cards; failing to honor payments for a few months is enough to plunge you into deep debt. A good credit counselor will give you debt management options and show you ways in which you can repair your credit score.
Features
One of the most important lessons offered through debt credit counseling is financial discipline. The problem with credit cards is that they create an illusion which does not represent your current financial status. Counseling helps you to manage your finances by first resisting the temptations that come with credit cards. Basically, being financially disciplined means that you should always strive to live within your means. Your credit card may allow you to spend more, but you don’t have to, this is how people easily fall into debt. Debt credit counseling will provide you with information on how to prepare a budget and stick to it. The other common mistake is that many people tend to stretch the meaning of the word income. Income refers to the exact amount you earn and not what you may hope to earn in the near future.
Tips and comments
Debit credit counseling services are tailored to offer financial advice from a professional point of view. Counselors are person trained in debt, finance and budgets. They analyze every debt situation and come up with a plan based on your income and debt situation. They do this by assessing the facts and providing a strategy and a way forward towards debt consolidation. You should check to ensure that the credit counseling agency you pick is accredited by any reputable authority. Seeking credit counseling is a bold and important step towards achieving long term financial control.
