Repair Your Credit Profile

Are you deeply in debt? So the typical scenario of receiving countless letters or disconnection notices as well as endless phone calls from bill collectors isn’t very new to you.

It is important to understand the kind of debt that your problem consists of first. If the total of the minimum payments that you are required to make each month on your unsecured debt (think credit cards) exceeds 20% of your net income, then there are free debt management programs that can help you.

However, if the debt that you are drowning in is made of secured loans (mortgage payments, car loan payments, or monthly installment payments for furniture or appliances), then the free debt management and credit counseling services cannot help you and neither can the for-profit credit counseling and debt management services.  They can try and help you with debt reduction.

The free credit counseling services like CCCS (Consumer Credit Counseling Service and MMI (Money Management International) are nonprofit organizations. The services are free and you will not be charged a monthly service fee, nor will there be any charge for the counseling services. They are there to help you reduce debt.

Each and every one of us are in debt, one way or another. Nobody is ever really completely debt-free. Even older people who own their own homes and drive old cars still have some debt, like insurance premiums and utility bills.  We all need to work on debt reduction.

Debt is a part of all our lives, we need to learn sound financial habits soon so we can get our debts under control, debt management plans can help.

Please be aware that when you seek credit counseling and enter into a debt management agreement with the free credit counseling services, all of your credit accounts will be closed. You cannot charge anything else to those accounts, and you cannot open any new credit accounts until you have cleared your outstanding debt.

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