DEBT MANAGEMENT

Debt consolidation agencies by and large are not the way either. Many people think this is a wonder cure-all, but what they do is take all your existing debt and lump it into a new loan, in theory with a better interest rate than what you were paying on all the other balances. You can get better rates all by yourself! You do not need to pay an agency; and some debt consolidation agencies charge outrageous fees and sky-high interest rates. With the debt cures methods, I will teach you how you can reduce or even completely eliminate debt – not merely consolidate it.

Another highly advertised option is credit counseling. Using this kind of service to help you actually used to hurt your credit report! The credit reporting agencies now recognize that trying to improve your credit is a good thing, and your credit score is not affected. Basically, a credit counselor is supposed to teach you how to handle your debt, like offering you the worn-out advice of “cut up your credit cards”. They will also negotiate with your creditors for you, but now you know that you are able to do that yourself.

Credit counseling companies are often nonprofit organizations, but they charge a fee. Why should you have to pay a fee? You don’t! if you have already gotten involved with an agency, you can check with the National Foundation for Consumer Credit Counseling, to make sure that they are reputable.