Credit counseling services can assist consumers in eliminating debt by creating a payment plan and working with creditors to reduce interest rates and sometimes eliminate fees. Credit counseling companies are able to negotiate pay-off plans with the creditors, combining payments for multiple creditors into one convenient monthly payment. Consumers who are struggling to keep up with minimum payments, especially those with high interest rates, are good candidates for a credit counseling service.
Step 1
Visit the National Foundation for Credit Counseling by going to their website or by calling its toll free phone number (800-388-2227). The National Foundation for Credit Counseling is a respected national, nonprofit consumer counseling service that has partner agencies located all over the United States. They will help you locate one of their affiliate agencies near your home.
Step 2
Call the affiliate office of the National Foundation for Credit Counseling to set up an appointment. Depending on your situation, you may be able to have your consultation over the telephone. Credit counseling through the National Foundation for Credit Counseling is usually a free service. Some credit counseling companies charge a fee up front for their services. The Credit Repair Organizations Act strictly prohibits this practice. Never pay up front for any credit counseling or credit repair services.
Step 3
Meet with your credit counselor. Take copies of all credit card and loan statements, as well as a detailed account of all monthly expenses and income. The counselor will help you create a plan to pay off your debt. You may be eligible to enroll in a debt management plan where the agency contacts your creditors directly and negotiates lower interest rates and monthly payments. On average, it takes three to five years to completely eliminate debt in one of these plans. If a debt management plan is created for you, make your monthly payments on time. Payments are made to the National Foundation for Credit Counseling agency and are distributed directly to the creditors.
Things You'll Need
- Statements for all creditors
- Pay stubs showing income
- Monthly bills
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