can someone explain credit counseling?

Question

12000 worth of cc debt! Help ME!

Answer 1

If you need help, check out this site: http://www.nfcc.org/ . This is Consumer Credit Counseling Services (CCCS), a legit non-profit company offering free credit counseling. They also have debt managment program available, if you qualify, at no fee. They can review your finances and give you specific advise on budgeting and dealing with your debt.

There are a lot of companies offering debt relief/counseling. They take their fees up front and trash your credit.

There are ways to work yourself out of debt but you must set yourself a strict budget. Get rid of all the extras -- cell phone, eating out, new clothes, etc. Put every penny you can squeeze out of that budget on the highest interest rate credit card, while paying minimum on the rest. When the highest rate is paid off, move to the next till they are all paid.

It will take 2 or 3 years but you will have a good credit history.

Answer 2

If your over your head in debt and can't afford your monthly payments, a certified credit counselor may be the right option for you if you have bad credit.

Unlike debt consolidation loans which are very hard to obtain with bad credit, a certified credit counselor can enroll you in a debt management plan with bad credit. This enrollment will allow them to negotiate with your creditors to lower your interest rates and monthly payments.