What Help You Can Expect From a Credit Counselor?

When you approach a credit counselor, you have many expectations. If you are prepared to co-operate, he can certainly help you to normalize all your debt problems within a short time.

What help they will offer you?

1. The counselor will ask you to bring all the receipts, statements and whatever documents you have concerning your debt. On the basis of all these papers, he will be able to make out the total amount of debt you have accumulated so far.

2. Then the counselor will speak to your lenders and credit card companies requesting their help with the repayment plans. The counselor will also request these creditors to lower interest rates and waive penalties to make your payment proposal workable.

3. The counselor will discuss with you about your income details and your capacity to pay. With your assistance, he can prepare the budget where he will incorporate your present income and will fix future payment amounts and dates, considering your normal expenses. You have to be honest at this step. When you commit a particular amount and date, you should not make a default to get behind again.

4. All the payment arrangements requested by the counselor have to be approved by your creditors.

5. The counselor will also help you with the advice and tips for your spending pattern and your financial planning. He should teach you about healthy spending habits and can chalk out a plan for your future.

6. You can also think of ways to earn additional income or make some additional savings so that you can clear your debts speedily.

7. During this counseling time and for some more time thereafter, you will not be able to use any of your credit cards and you will be advised not to create any more credit during this time.

8. There will be remarks on your credit report that you are under a counseling program. However, even with these remarks you are much more comfortable than the bankruptcy proceedings. You will also be able to stop receiving harassing calls from your creditors as well as from collection agencies.

9. When the counselor suggests payment of a specific amount per month towards your debts, you are supposed to make that payment to the counselor and he will take care of its distribution to different creditors.

With the help of your counselor, you should be able to go on a right track within a short time. Always remember, your counselor is not a magician. You have to be realistic while discussing financial commitments with him. If you take his advice in correct perspective and honor your commitments of payment, you will leave behind the nightmare and start enjoying your life soon.

Author : Chintamani Abhyankar

About the Author :

Carrying a 'loaded' credit card is everybody's dream. But with limitless shopping, it will soon be overloaded with debt! It is an embarrassing situation and you want to come out of it as quickly as possible. Your counselor can sort it out for you. How to interact with him? How to sort out the problems of debt? Chintamani Abhyankar provides useful tips and advice.

Chintamani Abhyankar, is an expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and tips on personal finance.