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When You Should Consider Credit Counseling

Nov. 9, 2019, 10:14 p.m.   qualiacredit  

Credit counseling is a good way for you to manage debt, understand how to repair your credit, and get help with creditors who are calling you all the time. There are a few tips below that explain when you should talk to a credit counselor, and you will learn about the benefits in each example. Credit counseling is a good thing for anyone to try when they feel they cannot get their debt under control.

You Have A Lot Of Maxed Out Credit Cards

When you have a lot of credit cards that are maxed out, you are likely making minimum payments on these cards. You may have one bad month at work where you do not earn as much money as you think you should, and you might not be able to make payments at all. Because of this, you should turn to a credit counselor.

The credit counselor can negotiate with each credit card company, work out a payment schedule, and prevent your account from going into collections. Plus, the credit counselor might be able to keep your card open. If you can avoid closing your card, you will not have a negative mark on your credit.

You Have Too Many Medical Bills

Your medical bills may be out of control, and it is hard to negotiate with a hospital or medical office. When you talk to a credit counselor, the counselor can talk to the hospital or medical office. The two sides can come to a payment arrangement that keeps the bills out of collections. Plus, you can make payments on your bills that will reflect well on your credit.

You Have A Lot Of Student Debt

Paying off student debt is hard to do if you have just stared in your industry. Some people will actually go back to school so that they can defer payment on those loans. Because you have deferred payment on these loans, you will not need to pay them off until a later date.

However, going back to school is hard for some people. You should approach a credit counselor if you need help negotiating a payment plan for your student debt. These lenders want to get their money back, but you may not have the bargaining power of a credit counselor. Let the credit counselor create a payment plan for your student loans. You may even turn the student loans into a new loan that has better terms and/or rates.

You Are Upside Down On Your House

If you are upside down on your house, that means the value of the house is lower than what you owe. If you are stuck in a situation like this, you may go to a credit counselor for help. Credit counselors can recommend good refinancing options, or they may go to the mortgage company to work out a payment plan for the loan. Most of these companies want you to keep your house because they will lose money if they foreclose and sell later.

The credit counselor will help you refinance, change your payment arrangements, and get back on track. The credit counselor will help you build a budget for the family, and you can account for the debt that you need to manage.

You Have A Lot Of Old Debt

If you have a lot of old debt, you should go to a credit counselor for help with the management of your credit. If these bills are several bills, you may want to wait for them to come off your credit report. Negative items fall off after seven years. Plus, some companies will try to collect after the seven-year time limit has elapsed. Make sure that you are not paying off these bills.

Let the credit counselor show you what to pay off, what to leave alone, and which companies are collecting bills that no longer impact your credit.


You should approach a credit counselor if you have any of the problems listed above. You can deal with student loan debt, a bad mortgage, medical bills, or credit card debt that is hard for you to pay off. The credit counselor will help you work a payment plan, create a monthly budget, and avoid paying off bills that are no longer reflected in your credit report.

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