People who find themselves with credit card debt that they can’t pay are often desperate for a solution to their debt problems. Most credit card companies are willing to work with you to come up with an arrangement to help you to pay off your debts. It is entirely possible to negotiate with them yourself, however a lot of people are not comfortable doing this. In that case it is usually wise to consider credit card debt counselling.
A debt counsellor will work with your credit card company to come up with a payment plan that you can afford. They will generally try to work out a plan that eliminates all of your debts and may suggest that you consolidate your debts into one payment. Your counsellor will help you to come up with a budget so that you can make the payments. They will also help you to improve your money management skills to help you avoid more debt problems in the future.
It is important that you know when it is time to consider debt counselling. Debt counselling is primarily for people who are unable to pay their bills. If you can’t even make the minimum payments you need debt counselling. If you are consistently just making the minimum payments then you should probably give it serious consideration. Generally the best advice is to determine how much the fees for this service are going to be and how much money they can save you on your debt. If the amount they save you is more than the fees they charge it is probably worth considering debt counselling.
It is also important to keep in mind that using a debt counselling service will negatively affect your credit. If you still have good credit and are able to make your payments then you probably shouldn’t use a debt counsellor. The best option is to pay off your debt in full if you can. If you can’t your credit card company will work with you but their will be consequences to your credit.
A professional debt counsellor can be a godsend to people with serious credit card debt problems. They can help you to work out an arrangement with your creditors to reduce your payments. This is not a solution that applies to everybody. For some people it may be too late and bankruptcy may be the only option. For others it may not be necessary to hurt your credit by using one of these services. You will have to look at your own situation and decide if credit card debt counselling is right for you.