If you have a lot of debt, you may want to enroll in a debt management program. The best debt management programs are run by non profit groups such as CCCS of Greater Atlanta or the National Foundation for Credit Counseling. Watch out for debt management programs that ask you to pay an upfront fee. Learn more about debt management programs here.
Risks Of Using Non-Profit Credit Counseling Agencies
All credit counseling agencies are not looking out for you - even the ones that claim to be non-profit. Many consumers are surprised to learn that there are good credit counseling companies and bad ones. Just because the one you're using carries the "non-profit" label doesn't mean it isn't making money for its owners. "Non-profit" also doesn't mean the counselors are really working on your behalf. Once you find a good credit counseling agency, there are different ways it can help, some of which will affect your credit history.
Take Charge Of Your Credit Score
Many people who are in debt end up getting suckered by credit repair scams that promise vastly improved credit scores (for a large upfront fee) but can't deliver without doing something illegal, like setting up a fake social security number. Others end up working with a credit consolidation company, but are unaware that being in a debt management program can torpedo their credit scores. There are endless reasons why someone might fall into financial difficulties, but there are only a few ways you can repair your credit history and credit score - none of which include hiring someone else to do it for you.
Debt Management Program: How To Research One
One way to pay down credit card debt and avoid bankruptcy is to enroll in a debt management program through a credit counseling service. But before enrolling in a debt management program you should research the credit counseling agency who offers it and make sure that the credit counselors are educated and qualified. Learn what questions to ask before enrolling in a debt management program.
Debt Management Program Can Help Avoid Bankruptcy
Do you feel like your debt is overwhelming or out of control? It may be worthwhile to enroll in a debt management program rather than filing for bankruptcy. While both a debt management program and bankruptcy look bad on your credit report, a bankruptcy makes for worse credit. Learn what to look for when choosing a debt management program.
Credit Card Debt: Pay Off And Improve Credit Score
After making numerous credit mistakes, can you consolidate your debt and improve your credit score? A debt management program probably won't help you pay off the debt and instead may lower your credit score. Ilyce's advice: get a second job, pay off the debt and improve your credit score.