Is Credit Counseling a Good Thing?

Credit counseling can be a very good thing, especially for those who are in serious debt. Obtaining some kind of credit help, it really can be a good thing, but in some cases it could send some potential creditors and lenders running away in the future. You should also know that depending on the company and what your counselor chooses to do, it could very well hurt your credit score. For solving your immediate debt problems, credit counseling is a great thing. It sets up a payment schedule that usually last 5 years where you make monthly payments.

What Happens When You Get Credit Counseling?

For many people, if they are deciding to file for bankruptcy, they are going to have to do some kind of credit counseling before the bankruptcy will even be considered. The counseling is for anyone who needs help with many financial problems as well as how to manage the debt that they currently have. It can help you pay your bills on time and teach you many great techniques on how to stay out of debt.

Just talking to a company, especially one affiliated with the National Foundation for Credit Counseling, about doing a credit and debt counseling plan is not going to have a negative impact on your credit. What messes up your credit is the fact that when you enroll in a debt management program, it gets noted on your credit report. Some creditors deem that as bad, but many other deem it as a good thing. Negotiating with your creditors is what is really going to play a key factor in hurting your credit score. When you settle for a lesser owed amount, it will be reported to the credit bureaus and that is what shows on the report. It can knock quite a couple of points off of your score.

Good Credit Counseling Solves Debt Problems

For those of you who are already in the worst shape when it comes to debt, credit counseling can be a great thing. It can help raise and improve your credit score as well as get you out of debt, by paying your bills. It would be in your best interest to talk with a couple of different companies to see what they can all offer you and if it is something that you are definitely interested in. You should make sure to choose one that knows what they are doing as well as has some of the best experience in providing help to consumers everywhere.

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