Credit Counseling

Credit counceling as a means of establishing a debt management plan

Credit Counseling Basics
Credit counseling (Debt counseling in the UK variant) is the process of teaching a given debtor to avoid incurring debts that he is not able to repay. In most cases, the main part of the credit counseling process is the attempt to convince a creditor to establish a special debt management plan (DMP) for the given debtor. This plan is aimed at constructing a repayment schedule that a debtor experiencing certain financial hardships will be able to afford. If the creditor is open for negotiation, the DMP worked out by your credit counselor will most probably include: reduced regular payments, lower fees and interest rates to the debtor. As it has already been stated before in other a...[Read more]

How to Choose a Good Credit Counseling Company
Most often the process of choosing a good credit counseling company (CCC) turns out to be a very difficult thing to do since a large number of companies that proudly call themselves “non-profit” turn out to care about their own bottom line much more than about representing the interests of their clients. A report by US Senate investigators published in 2005 stated that some of the new CCC’s that had been operating in the industry for a relatively short time were working according to a completely different for-profit business model that brought large amounts of money to their affiliates without damaging the charitable status of the companies themselves. On the other hand, this report e...[Read more]

New Bankruptcy Law 2005: Credit Counseling is Now a Must
A debtor thinking over the possibility of filing for bankruptcy should pay maximum attention to any changes in the bankruptcy law. According to the last important amendment, starting from October 17, 2005, an individual must receive credit counseling from a company approved by the government at least six months before filing for bankruptcy protection. We strongly suggest you consult a credit counseling bankruptcy lawyer since only a professional is able to make you aware of your legal alternatives and rights. Credit counseling organization representatives are able to consult their customers on the following subjects: - Managing Debts - Managing Money - Educati...[Read more]