Guidance On Consolidated Credit Counseling Services
In a bad economy, it’s getting pretty easy to become overloaded with credit card debt. You aren’t necessarily a shopaholic and you aren’t necessarily buying items that you don’t need. In an economy like we have today, families are finding it necessary to use credit cards for things they never would have needed to or considered perhaps a year ago. When groceries were paid for in cash, they now are added to a credit card. Even your morning coffee might need to be charged. When monthly statements become overwhelming and almost impossible to pay, consolidated credit counseling might be the only answer.
Consolidating your credit is just what it sounds like – you consolidate all your bills into one monthly payment. There are pros and cons associated with this process but for many families it’s the only option they have available without filing for bankruptcy.
First, check out some local non profit agencies that specialize in this kind of credit counseling. Many companies exist, especially online. Do your research, though. The thought of having all your bills lowered and consolidated is sometimes such a driving force that many consumers end up signing on with companies that do thing more than cause further problems.
The industry is rife with scams, especially with online companies. Many of these companies have very detailed and professional looking websites making consumers believe these companies offer valid and viable services. They usually have the usual disclaimers, a detailed application form, and even an address and phone number to add to their alleged legitimacy.
What these companies really do is take your money and run once you figure out what is really happening. They accept your application, they send you a few emails, they ask that you sign their contract and maybe they might ask for a deposit, usually called an administrative fee. After a few more days they then give you all sorts of details of phone calls they have made on your behalf and the final negotiated and reduced total of your monthly bill payments. A total that is sent to them each month.
Of course, the assumption is that they will, in turn, be paying each of your creditors the amount they have allegedly negotiated for with this agency. In reality, the company hasn’t contacted anyone at all, there is no new lower payment, and your money is doing nothing but fattening the bank account of the scammer who set up the website. By the time you realize there is a problem, which is usually about two months, these people are gone. The website is down and back up under another name, doing the same thing.
In a few months you will find that your creditors start calling asking when you plan on paying your overdue bills! When you explain your situation, this is when you are told they have no new agreements with you or any of your representatives.
On top of that, you are now being penalized with a higher APR because you have defaulted! Be careful who you ask for help!
Find Out More About Consolidated Credit Counseling at Consolidated Credit Counselling and Consolidated Credit Counseling Services