Questions to Ask a Credit Counseling Service about Debt Relief

Debt relief is a topic on a lot of consumers' minds these days, and with good reason. American credit card debt in 2001 was $692 billion, triple the amount from 1989. In that same time period, the average credit card increase for a middle-class family was 75%. The amounts were even higher for low-income families and senior citizens. At one time, such a high amount of credit card debt would seem frivolous as buyers spent money they didn't have on luxury items such as electronics or jewelry. Today, however, in less stable economic times and a poor job market, more people are turning to credit cards as a way to extend their income. More and more debt is being rung up for everyday items such as groceries and medical bills. How can people get real help with debt relief?

Credit counseling services were originally established by credit card companies who wanted to get at least some of their money back before a client decided to declare bankruptcy. While that may seem shady to some people, for others it is a legitimate way to pay the debt they owe.

When seeking debt relief, however, be wary and be an informed consumer. Do your research before signing on with any one service. Here are some questions to ask:

* How much does it cost? Many less-than-reputable services charge hundreds of dollars to start up, money that doesn't go to any of your creditors.

* Does the service notify credit bureaus about your enrollment in their program? Some do and some don't. Creditors may still elect to put a bad mark on your credit report, but the agency you are looking at for debt relief shouldn't.

* What services are offered? Do they offer a range of solutions from trouble-shooting before finances are a big problem to debt management. Beware of companies promising too quick a solution or promising to "fix" your credit report.

* What are the benefits of belonging to one particular group over another? For example, some services offer newsletters and budgeting tips, all to help you become more stable when your debt is paid off.

* Are they a member of the Better Business Bureau? If that is not advertised, check them out with BBB first.

With time, patience and diligence, you can become debt free.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt consolidation, credit counseling, repair and free debt relief information that you can research in your pajamas on his website.

In The News:


pen paper and inkwell


cat break through


Debt Management - Is It the Right Choice For You?

Debt Management plans offer credit counseling clients a different and... Read More

The Road to Debt Relief

Living with debt is not something someone hopes for, but... Read More

Repair Bad Credit Yourself

In March 2005, the U.S. financial services industry succeeded in... Read More

Is There Any Way To Get Out Of Debt?

In this era where we are bombarded daily with commercials... Read More

Debt Collectors; And what you can do to Get Them Out of your Life

FTC opinion letter on validation Section 809(a) of the FDCPA,... Read More

How to Negotiate Debt Settlement

People over extend themselves financially as a result of a... Read More

How To Avoid Medical Collections

With medical collections costing doctors millions upon millions of dollars... Read More

Debt Management Systems

What is a debt management system, and when do you... Read More

Learn The Five Key Debt Reduction Steps You Must Take Immediately!

Step 1. The purpose of this first step is to... Read More

Is Independence Overrated?

Happy Independence Day from The Money Motivator!If you don't celebrate... Read More

5 Ways to Get Out of Debt

It has been said that everyday more and more people... Read More

How to Get Triple A Credit in 25 Days

Good credit is everyone's dream. A wise use of credit... Read More

Debt Problems? You Can Negotiate With Your Creditors

It is always possible to negotiate with creditors ? even... Read More

What Is A Chapter 13 Bankruptcy?

Many consumers that are bogged down in debt frequently turn... Read More

Should You Invest In Savings Or Payoff Your Debts?

I have faced this financial question 8 years ago and... Read More

Bad Credit Home Loan To Get You Out Of Debt

A "bad credit home loan" can help you climb your... Read More

New Bankruptcy Law Will Not Protect You from Identity Theft

Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More

Bankruptcy: What You Need to Know

Personal bankruptcy is a legal way to give people with... Read More

Top Ten Reasons People File for Bankruptcy

1. Eliminate the legal obligation to pay many of your... Read More

What is Bankruptcy?

Here is a useful guide to bankruptcy. It should be... Read More

Bouncing Back from a CCJ

Should you be unfortunate enough to face a CCJ ?... Read More

Reduce Your Debt With These 5 Tips

It's never pleasant to realize that you're in financial hot... Read More

Save Money When Going Out

It seems as though whenever we go out for the... Read More

Two Ways To Debt Relief

There are many debt relief programs out there both off... Read More

Debt and Financial Optimism in the UK Continue

With £1.3 trillion pounds worth of debt in the UK,... Read More

Secrets to Why Debt Reduction is So Vital for Your Financial Health

Living with debt is never a good idea if you... Read More

Assess Your Financial Attitude and Eliminate Your Debt Forever

Want to know if your attitude towards your finances is... Read More

What You Should Know About Bankruptcy

Filing bankruptcy is not only a last resort legal action;... Read More

Pay Off Your Student Loans and Reduce Your Debts

Financing a college education is one of the more expensive... Read More

The Last Debt Solution Should Be Bankruptcy

A debt solution like bankruptcy should really only be used... Read More

Bankruptcy: Which Chapter Do I File?

There is more than one kind of bankruptcy. You should... Read More

Bank Like a Banker

The business of banking has changed dramatically over the last... Read More

Bankruptcy: Who is to Blame?

If you are considering bankruptcy as a solution to your... Read More