You'll want to find out right away if you will eventually be charged for the services that they provide because if you are in debt, the last thing you need at this point is another bill. Once you've determined if you'll be able to work with the agency, you can start repairing your credit rating by letting the agency consolidate your debt.
Think about what you've read so far. Does it reinforce what you already know about bankruptcy? Or was there something completely new? What about the remaining paragraphs?
Credit counseling agencies can help you draft a debt repayment plan, outlining what needs to be done in order to clear all of your outstanding balances. They calculate your income, along with any unforeseen financial setbacks (such as medical expenses) are also taken into account when making up this plan.
Whatever is left of your debts are then converted into one lump sum, which you can then start to repay in monthly installments. In some cases, an agency might buy the debt from your creditors, meaning you make your monthly payments directly to the agency. In other cases, the agency might intervene on your behalf, and convince your creditors to extend grace periods, temporarily suspend collection, or accept a reduced lump sum.
Credit counselors can help you get out of debt, but they cannot totally erase any past damage to your credit report. Although past bad credit can remain on your report for several years, working with a credit counseling agency can still help you get approved for credit at some point in the future as it shows that you put in a lot of effort. Through a credit counseling agency, you will be able to make consistent payments against your outstanding balance, which does reflect positively on your credit report, and can be influential if you apply for credit in the future.
Take time to consider the points presented above. What you learn may help you overcome your hesitation to take action.
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