Get Help with Debt Management

By Jami Delgado

Doing a search on your computer will render a series of companies with several debt management plans that may serve your needs. The problem is knowing which company is right for you. Some companies may focus on commercial debt management, while others are debt management credit counseling corporations. Still others call themselves debt management consultants. This article will discuss the options for personal debt management.

Doing a search on your computer will render a series of companies with several debt management plans that may serve your needs. The problem is knowing which company is right for you. Some companies may focus on commercial debt management, while others are debt management credit counseling corporations. Still others call themselves debt management consultants. This article will discuss the options for personal debt management.

First, get a copy of your credit report and know where you stand. You are allowed one free credit report a year; take advantage of it. Also, be aware that as of 2008 the FICA scoring has changed and may have affected your credit score. Look into the differences between the old scoring systems and new in order to understand how it may have affected your score.

Be aware of debt management companies that offer debt management plans. These plans often rely on a piggybacking system where you pay to have your name piggybacked onto the old good credit of a stranger, thus boosting your score in a matter of months. This system does not work with the 2008 FICA scoring as the new system does not look at secondary names on accounts. This system is often referred to as credit repair plans.

Educated yourself! Know more about credit and how it works so that you can understand any solutions that counselors suggest. Again, there are many resources available for free online that will give you valuable information. See the resource links below.

Consider searching for non-profit debt management counseling. Non profit companies are less likely to be milking your for cash. Counselors will teach you the tools to improve your credit over time, rather than taking over your credit management. Remember to ALWAYS research a company before working with them.

Consider turning to online counseling services. There are many counseling services online that are free or inexpensive. Beware of companies asking for substantial fees to help you. Remember, you're in debt! One such company is Crown Financial Ministries. Though a Christian organization, their goal is to help anyone learn to manage money. There are free online services AND they offer local financial coaches that will meet with you personally (for free) to help you organize your budget and planning. See link below to this company. There are many others out there like it.

Tips:
• Always know where your credit stands
• Create a budget and plan to get out of debt
• Rethink needs vs. wants
• Do your research before working with a company!