What Is Debt Counseling?

Consumer credit counseling agencies offer debt management programs that allow you to consolidate your bills. The counselors negotiate with your creditors to obtain lower payments, reduced interest rates and/or waive late and over the limit fees. Once an affordable payment plan has been established, you make one monthly payment to the credit-counseling agency. The agency then disburses payments directly to your creditors.

In general, debt counseling is intended for people who are having serious financial difficulties and are unable to keep up with their payments. The impact of a debt management program on your credit report varies depending on the circumstances. By making payments promptly most people may actually improve their credit rating.

Benefits of debt counseling:

• Reduce your monthly payments.
• Have your interest rates lowered.
• Help you avoid bankruptcy.
• Make one convenient monthly payment.
• No penalty for early repayment.
• Pay down existing debt faster.

Make Me Debt Free