Credit counseling services are ten a penny, and some are downright frauds, but for every fraudulent company, there is going to be a service that does indeed help the average consumer. Spending over budget is probably one of the most common problems that plagues the average American, and neglecting to pay your bills on time can negatively impact your credit score. A poor credit score prevents you from getting approved for loans or renting the home of your dreams.
However, before things get out of hand and reach the point of no return, you could just employ the help of a credit counseling service. Though most services do charge a nominal fee for their help, the information and knowledge you gain in order to lead a better way of life is simply priceless. Even if your debt has reached an all-time high, credit counselors can help you get your life back on track and avoid filing for bankruptcy!
What Credit Counselors Can Do For You
As we just touched upon the topic of debt, credit counseling services can help you maintain good standing with your debt by paying it off or giving you the necessary warning you need when you’re starting to sink.
With the right counseling service, you can make sure that your credit score remains high in the 600s. A great score is an integral part of getting a loan with 0 percent interest rates. Additionally, when you look to rent pretty much anything, you need to have a decent credit score in order for companies and organizations to rent to you.
If you’re already in a world of debt and your phone is ringing off the hook because of creditors, you can finally experience a bit of peace when you sign with a credit counseling service. Your counselor is responsible for dealing with creditors and helping negotiate fair payments. Oftentimes, creditors will rip the average person off, but when you employ professional help, they know exactly how to get those pesky callers off your back.
Even if you’re not in dire need of a credit counseling service, you can still stand to gain something in the way of reduced interest rates. In most cases, yearly interest rates for credit cards can reach anywhere from 5 to 10 percent respectively, which is extremely high. A counselor can help you use your credit card in a manner that will not raise your interest rates, but lower them instead.
Bill consolidation is yet another good reason to hire a counselor. Credit counselors are able to help you mash all of your bills and debts into one lump sum that you need to pay off on a monthly basis. This can help you calculate your budget much more efficiently and know exactly how and when you will spend your money.
As you can see, there are quite a few reasons to get credit counseling help! With a high credit score, you will enjoy more perks in life.