Credit and Debt Counseling

Credit bureaus, also called credit reporting agencies (CRAs), are companies that collect and maintain consumer credit information. The three major CRAs in the U.S. are Equifax, Experian, and TransUnion, and they are all publicly traded, for-profit companiedebtredemption.

When you use a debt counseling service that consolidates your debt for you, you are supposed to make one monthly payment to the credit counseling company instead of paying your credit card companies individually. However, if you come into some extra money and you want to make an extra payment directly to the credit card company, you may need to do some research. Once you sign a contract with your credit counseling company you'll need to abide by the terms of that agreement. Many credit counseling companies want all payments made to your credit cards to go through them. This will mean that you will need to send the extra money to the credit counseling service rather than directly to your credit card company. Another thing to think about is if you do send the funds to the credit counseling service, you might not have any control over which credit card they apply it to. You can tell them where you would like it applied, but that doesn't necessarily mean that's where they have to apply it.

The number of credits can vary according to institution. However, typically for this field the number of required credits can range from 33 to 40 credits.

If your loan application has been rejected, the first thing to do would be to find out the reason for decline. It is advised to check with the concerned lending institution for exact reason of decline. If the reason stated is related to your Credit Score or Credit Report; it is advised that you obtain a copy of your credit report from the concerned credit bureau. Once the credit bureau report has been received, then you need to scan the report thoroughly to understand the concern. On identification of the concern you can either chose to work towards a resolution on your own or you can engage a credit advisory company to help you.

I also found this article very helpful. It outlines the steps you should take and gives advice which is quite simple to follow. propertybuyer.com.au/richs-blog/what-to-do-if-your-home-loan-is-rejected/

It would be better to pay off all debts as soon as possible!

As said in the above answer, it makes more sense to go ahead and pay the debts, especially if you are paying interest or fees on these debts. But if for some reason you decide not to do that, pay them on your own because a credit counseling company will most likely want to charge fees for their services.

Put the small inheritance into savings, so that next time around you have some cushion against sudden expenses. There are some decent CDs or savings accounts that pay interest. Then, work hard and scrimp for awhile to pay off those debts. If you need help figuring out how to manage the debts, a non-profit credit counseling company can help. There are also some good money management chatrooms that can help you become more savvy. I like the one on MSN Money.

A reputable financial counseling or credit counseling organization may be able to help you for free. Some have nominal charges for a consultation while many others offer free counseling sessions. Make sure that you seek help from a nonprofit organization so that there is no incentive for them to sell you on any single solution.

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CareOne Credit works with you and your debtors to identify feasible options for reducing your debt, consolidating credit card bills, and has a large base of customers who have benefited from the expertise of this company. They are a for-profit organization, and you must consider your options with similar credit counseling services in order to decide whether CareOne will be helpful to you. Overall, CareOne Credit has positive ratings and is a reputable credit counseling service.

Once you are enrolled in a debt counseling program, using your credit cards is no longer an option. Credit cards are an easy way to mount up your debt situation. One of the principles in debt counseling is not incurring new debts. You cannot use your credit cards when you are undergoing debt counseling. You will also need to cancel your credit card insurance.

They will discuss with you your budget. How much do you bring home twice a month and they will talk to you about creditors their names and the minimum due each month. A lot of people are tired of paying the creditors the minimum that is when these people come in. They will negotiate with the creditors to lower their minimum payment. Instead of giving each creditor a payment, you will give them one payment and hopefully they will pay the creditors for you.

Check with the Better business bureau to see if they have a rating and to see if it is a non-profit and have financial counseling. A lot of people claim they help people, but they don't.

You can get consolidation credit counseling online at the ConsolidatedCredit Organization website. Alternatively, you can also get this type of counseling from websites such as ConsumerCredit.

What is needed in regards to signing up for credit counseling services will depend on which credit counseling company you decide to go with. Each company will have their own specific requirements, although there are some standards that almost all companies will ask for. The first thing you

Careone Credit Counseling is a debt relief company that helps consumers get out of debt with the help of a trained credit counselor. They also provide credit counseling for those in need.

Go to the US Trustee's Website. This is the link http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm.

Christian Credit Counseling offers free counseling that may help you. In Detroit, they can be reached at (248) 557-7341.

There are a number of credit counselors in the Texas area. Some of the many companies include Abacus Credit Counseling, ABC American Bankruptcy Counselors and Wiser Consumer Education.

There are quite a few financial counseling services available. Money management and credit counseling are a good place to get basic money management tools.

The National Foundation for Credit Counseling is the largest and longest-running national non-profit credit counseling network with nearly 850 offices around the country. Credit counseling is a service provided by its members, most of them known as consumer credit counseling services. Founded in 1951, services provided by their accredited members are either free or low cost. You can find a member local to you by calling their toll free number 1-800-388-2227 or by visiting their web site (see the related links below). Their web site is also available in Spanish. You will find information on why and how you should manage your credit. There are many free tools that can help you do it easily and successfully, including calculators to figure out how long it will take you to pay off your debt. There is a printable budget worksheet that can help you plan your budget. Consumer alerts are available and organized by date and subject matter. Housing counseling on pre-purchase, foreclosure prevention and reverse mortgages is also found in its own section. There is a section with everything you will need to know about bankruptcy as well. When searching for credit counseling services look for one that is accredited with some national organization and noted that way on the home page of their website. Credit counselors get small fees from the credit card companies (or other agencies) they negotiate with on your behalf. You should look for assurances that all the money you are paying goes completely to your creditors. If the agency you are working with charges you a fee it should be stated as such and paid separately. There are questions you should ask that any legitimate business should be happy to answer... Are they non-profit? How do they get their funding? What fees do they charge and are those fees disclosed up front? If you are considering using a credit counselor, shop around and ask each agency all the questions necessary for you to be comfortable with them before you book an appointment.

In general it is usually best to avoid organizations that describe themselves as "credit repair" companies. They may claim they can fix your credit or get you qualified for a mortgage, loan or credit card. Even if the company really is legitimate, they can do nothing for you that you can not do for yourself. They will, however, charge you a hefty fee for their "help." They may say they can remove incorrect information from your credit report but under The Fair Credit Reporting Act, you can do that yourself. Directions for doing that will be found where you get your free credit report. These organizations will claim they can remove negative items from your credit report. They cannot. Negative (but correct) items can stay on your report for 7 - 10 years. Once you have your credit file you can challenge items that are outdated or incorrect yourself. If an item is removed because you challenge it and it turns out to be correct it will reappear between 30 to 60 days later. You may be able to negotiate with creditors to remove information from your credit file once you have paid an outstanding debt. You will be just as successful as anyone you might pay to do this for you.

Every bank in America, whether local, or chain, gives credit counseling for credit consolidation. If more in depth help is needed, they will also point you to someone who knows more.

The National Foundation For Credit Counseling would be the best first stop. They are non-profit, they can provide you with a list of hundreds of local non-profit agencies nationwide.

There are several places you could go to get advice on bankruptcy. I would check with a nonprofit credit counseling agency first, then possibly a bankruptcy lawyer.

Because some debt managment companies are more interested in 'spinning out' your debt for the longest period - thus earning them more money in handling fees. A reputable company will solve your problems swiftly - with the least cost to the customer - thus ensuring their reputation earnes them more business from recommendations.

Bankruptcy is legally declaring your inability pay your bills. The average person filing for bankruptcy is $25,000 to $30,000 in debt. It is now a requirement for consumer debtors filing for bankruptcy in the United States to complete a program with an approved non-profit budget and credit counseling agency during the 180-day period preceding the filing of bankruptcy. A list of approved credit counseling agencies by state and judicial district is available on the U.S. Trustee program website and will also tell you where to take the courses to prepare for bankruptcy.

There are several forms of bankruptcy that can be filed. The two most often used by individuals are Chapters 7 and 13. Chapter 7 bankruptcy does not involve a plan for repayment. It is used when you have no regular income and involves the sale of your assets, with few exempt items, to pay as much as possible. Real estate mortgages and other secured loans (e.g. car loans), survive. The value of property that can be claimed as exempt varies from state to state. Other assets, if any, are sold to repay your creditors. There are items of your debt that will not be discharged in Chapter 7, such as child support, income taxes, property taxes, alimony and student loans. Despite this, all debts must be listed. You should check your qualifications and educate yourself as much as possible about all your alternatives before making any decision. A Chapter 13 allows for adjusting debts for someone with a regular income. It allows you to keep your property and pay debts over a three to five year period. If at the end of that period your creditors have not all been paid - your further debts are discharged. It's important to realize that any bankruptcy will stay on your credit reports for 10 years after you are discharged. No individual may be a debtor under chapter 1 of the bankruptcy code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing.

It is your responsibility to educate yourself as much as possible before making such a serious decision and proof of your attendance, or certification that you have attended approved credit counseling before you file is mandatory. You may be able to get this online but make sure you receive services only from an approved provider for your judicial district. You can get a free "evaluation" online from several law firms, but most initial consultations are free. To find a local bankruptcy attorney who will be committed to getting you debt relief and provide you with information, advice and services, you can get a referral to a local law firm or simply use an online business listings website.

Wondering how you can pay the attorney? Filers might expect to pay up to about $2,500 for Chapter 7 and up to $3,500 for Chapter 13 and many people think they can not afford that. You may be able to find an attorney through legal aid services. There are fees that are dictated by the court, such as filing fees that are unavoidable. Find an agency that is local to you. You may be able to have the fees added into the bankruptcy settlement. Most bankruptcy attorneys will offer several options such as paying the fees in installments, or restructuring debt payments in order to free up money to pay the fees. An experienced bankruptcy attorney is familiar with the difficulty of paying fees and should be able to suggest ways of accomplishing this. Don't assume that you won't be able to pay.

Most credit card counseling plans can only decrease the amount of interest you have to pay per year. They don't actually decrease the amount that you owe on your debt.