you know how much money you spent last month? The majority of people know how
much money they made but have a vague idea of how much they spent. Not having
a solid control of your money both incoming and outgoing is an essential part
of controlling debt.
With today's society operating primarily on credit, it is
very easy for most families to spend more money than they make thus increasing
the amount of their debt. That's why you may need to consult a credit counseling
In the past, the way that families saved their money was to
set aside a certain number of containers or envelopes and label them for their
uses. They would then use only the container or envelope for specific purposes
and when it was empty, they did not spend.
Therefore, their debt was minimal
(if at all) and there savings increased with each pay period. They also knew where
their money was going. With today's technology, people rarely see or handle their
money and this makes it very easy to spend up to 10 percent of your income without
even knowing where it went.
To begin the process of controlling debt it
is important to know what you are doing with your money. This is where credit
counseling can help you get on track. Most credit counseling services offer:
Immediate decrease of monthly payments
* Decrease in the amount of collection
* Interest and fees are stopped and/or eliminated
* They show
you how to manage your money to stay out of debt in the future
* You are unable
to use credit cards while using consolidation services
* Ability to meet the
minimum amount of unsecured debt in order to qualify for services
* When you
begin consolidating your debt it could have a negative impact on your credit rating
choice to use credit counseling services is a personal one. Finances are a very
personal issue as such it is important that the service you decide upon is one
that you feel comfortable talking to the representatives. There are many reputable
agencies available to assist you in getting out of debt; there are also agencies
that do not have the best reputation.
Therefore, it is important for you
to research the services you are considering and verify that they are reputable
and have a good report with a large number of creditors. Remember, they are the
ones you are choosing to act on your behalf. You want an agency that will be able
to negotiate the best terms, which will help you in reducing your debt.
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Article Source: http://EzineArticles.com/?expert=Mike_Singh
are many different types of credit counseling services, including Non
Profit Credit Counseling.
For more information, search our site or the web: