Debt Collection

Credit and Debt Counseling

Credit and debt counselors advice people on how to improve their credit and economic situations. Debt counselors help people to understand where their money is going, how they are being charged with interest, and the best ways to knock out their bills. They will sometimes mediate with debtors to help reduce what a person owes. Credit counselors will look at payment histories, credit scores and reports, and overall debt to help a person make a plan to raise their credit scores.

Asked in Credit and Debt Counseling, Personal Finance, Debt and Bankruptcy, Debt Consolidation

Should you get credit counseling?

If you are living paycheck to paycheck, worried about debt collectors, or can't seem to develop a workable budget, you may be considering a consumer credit counseling service. Your creditors may be willing to accept reduced payments if you enter a debt repayment plan with a reputable credit counseling service. Choosing whether or not to use one of these services and choosing which agency to work with can be difficult, so here are some tips...
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Asked in Credit and Debt Counseling

What education or training do you need to become a credit or debt counselor?

You would need to have some accounting or credit training. You would probably need to have an associates degree in business or finance. The company could train the right person so you may not need any prior education or experience. ...
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Asked in Credit and Debt Counseling

Is it true that using a debt counselor will have a negative impact on your credit?

No it does not have a negative impact on your credit as they are there to help you out to manage your debts and increase you credit. They just give an advice on planning your debts then it is upto you how you make it.. Answer I went through consumer credit counciling,It was & is free in Mo. & that is the name. If you want there help it takes two You must do what they say including cutting all you credi...
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Asked in Credit and Debt Counseling

If you use a debt counseling service that consolidates your debt for you can you still make payments to your credit card company directly?

When you use a debt counseling service that consolidates your debt for you, you are supposed to make one monthly payment to the credit counseling company instead of paying your credit card companies individually. However, if you come into some extra money and you want to make an extra payment directly to the credit card company, you may need to do some research. Once you sign a contract with your credit counseling company you'll need to abide by the terms of that...
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Asked in Business Writing, Credit and Debt Counseling

Where can you get a sample of a hardship letter for medical bills?

If you have medical bills you can't afford to pay, you should write hardship letter to the hospital and/or your medical provider, and do it before you are sent to collection agency. Trying to explain the situation shows your good faith and desire to satisfy your bills. Hospitals and medical professionals are very likely to meet you half way, instead of trying to collect through the third party. So writing a short and right to the point medical bills hardship letter is...
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Asked in Credit and Debt Counseling

What's the difference between a debt consolidation loan and debt counseling services?

== == == == * A debt consolidation loan is a loan you get to pay off multiple loans or lines of credit. Debt consolidation loans are useful when you have varying amounts of debt on varying items (car loan, credit cards, medical bills, etc.). The idea is to get a loan at a fixed and low interest rate to pay off your varying debts. It typically lessens the total amount of money you end up paying. Credit counseling, also known...
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Asked in Credit and Debt Counseling

What is needed in order to sign up for credit counseling services?

What is needed in regards to signing up for credit counseling services will depend on which credit counseling company you decide to go with. Each company will have their own specific requirements, although there are some standards that almost all companies will ask for. The first thing you ...
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Asked in Credit and Debt Counseling

Will using a credit counselor help or hurt your credit?

Answer Once you employ the use of a credit counselor a notation to that effect is made on your credit score. This, in itself, is a neutral notation and does not affect your credit score. It is the credit score which determines your credit worthiness but there are some creditors who will view this notation in a negative aspect. Most creditors will look only at the credit scores, but whether credit counseling helps or hurts your credit depends on how an individual creditor...
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Asked in Credit and Debt Counseling

Will credit counseling show up on a credit report?

Answer When you are undergoing credit counseling, some of your creditors may contact the credit bureaus and put a notation on your credit card report signifying you are going through credit counseling. This notation is neutral and does not affect your credit score in any way. Once you finish the credit counseling, this notation is removed from your credit report. Answer yes it does show up. also just a pointer when you go to geta loan and a banker or a loan officer looks...
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Asked in Credit and Debt Counseling

If you use credit card counseling services to pay off debt how does this affect your credit?

Typically when you use credit counseling services there has been damage done to your credit already. It affects your credit, but not as bad as if you are paying late all the time and struggling. Typically they help you settle your accounts and sometimes this "settling" l;owers your credit score. Answer 2: Problems that cause you to seek credit card counseling will definitely lower your credit score. But the fact that you used a credit card counselor to help you out of...
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Asked in Credit and Debt Counseling

Can you file the balance that you owe the bank after your car has been auctioned on your Christian Credit counseling?

read the info from CC that you should have to see if "def. bal." is covered. OR call CC. ...
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Asked in Credit and Debt Counseling

What will happen if you drop out of a consumer credit counseling program?

I dropped out of consumer credit counseling years ago, and it was not a good experience. The credit cards that I had would not re-open my accounts and my credit report had a negative comment regarding "Consumer Credit Counselors", which is a red flag to any creditor that you needed assistance with maintaining your finances. Also, depending upon who your creditors are they will cancel the arrangements made with consumer credit counselors and go back to the original terms and agreement of...
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Asked in Credit and Debt Counseling

If you come into a small inheritance enough to pay off your debts is it better to pay them now or over time with a credit counselor company?

It would be better to pay off all debts as soon as possible! As said in the above answer, it makes more sense to go ahead and pay the debts, especially if you are paying interest or fees on these debts. But if for some reason you decide not to do that, pay them on your own because a credit counseling company will most likely want to charge fees for their services. Put the small inheritance into savings, so that next...
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Asked in Credit and Debt Counseling

How much is a certificate from a debt counselor for bankruptcy?

My bankruptcy clients have seen prices ranging from $30-$50. You should check with the local United States Trustee's office for a list of credit counseling agency that are approved in your judicial district. ...
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Asked in Credit and Debt Counseling

Can you sue a credit counseling agency after you file bankruptcy?

The US constitution permits citizens to sue anyone at any time for anything. Whether the suit will be heard is another matter. Expanding on the above...presumably you feel they didn't do what they promised. The written agreement between you and them would be the most important thing to prove your case...and I'd suspect it is written to protect them well...including things like it supercedes verbal representations and may even require you to submit to arbitration before going to court. ...
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Asked in Credit and Debt Counseling

How do you break contract with family credit counseling corporation?

Technically speaking there is no "Contract", its more of an agreement. I believe they may have gone under and sold their accounts to "American Debt Counseling, Inc." but from what I've read they have the same ripoff practices. The way to break your contract is simply fax them a written request to stop your automatic payments. ...
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Asked in Credit and Debt Counseling

If a chapter 13 case is dismissed for failure to obtain credit counseling prior to filing how soon can you refile?

If the case was dismissed without prejudice, you can refile at almost anytime after you get the credit counseling. However, you should exercise extreme caution when refiling the bankruptcy and you should consult an attorney before doing so. Under the new laws, there are harsher restrictions on refiling bankruptcy to prevent "serial" filings. A serial filier is someone who files case after case to avoid eviction or foreclosure. Failing to file the Certificate of Credit Counseling can be sufficient grounds to find that...
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Asked in Credit and Debt Counseling

How do you start an honest and reliable debt consolidation and counseling company?

If really serious, you would learn an enourmous amount of info as to how collection agencies work by working for one as a debt collector. If not, first step would be to talk to an Attorney; you would probaly have to retain one in some manner anyway. Look at your states regs. Looking into the licence requirements will give you a start. I would assume you will have to be bonded and have a net worth of x amount of dollars....
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Asked in Credit and Debt Counseling

How do you decide between a 125 no equity loan or a debt counseling agency to consolidate your huge credit card debt?

Keep in mind the 125 loan will probaly have high interest or some other means of increasing the payment in the future. The lender wants to be covered for their risk. Talk to a banker about the loan and an Attorney about the debt couseling agencies. That should give you your answer. Check out either company you decide to go with by calling the BBB of your state. ...
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Asked in Credit and Debt Counseling

What happens if you are in a credit counseling program and you cannot continue with payments due to slow job?

It would be best to meet with the person handling your account explain the problem and have the payment plan restructured. ...
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Asked in Credit and Debt Counseling

Can you use a credit counseling service to pay the deficiency balance in a repo in nc?

I was a Certified Credit Counselor in the state of North Carolina, and the answer to your question is no. The only accounts that a credit counseling organization will accept are revolving accounts (credit cards), payday loans, utility debts, and medical debts. Repossessions will have to be negotiated between you and the collection agency or lender that has this account. ...
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Asked in Credit and Debt Counseling

Could you make payments to a debt collector through a consumer counseling agency like Debt Free?

You could, but remember that DEBT FREE can not do a SINGLE THING FOR YOU that you can't do yourself!!!! ...
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Asked in Credit and Debt Counseling

What are good credit counseling programs?

Consumers who want to substantially reduce their debt should consider their options before contacting consumer credit counseling services. Companies specializing in debt counseling may be working on behalf of the creditors (your credit card companies, etc.). While they may offer you terms that appear attractive, remember that debt counselors may not have your best interests in mind when designing a payoff program. ...
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