When the Debt Won't Stop
Debbie WilsonLoanBiz Columnist
If you're like the
typical American family, you've probably incurred your fair share of credit
card debt. And whether it was a lost job, medical costs, or an over-the-top
shopping spree, spending beyond your monthly income can prove to be like
digging a hole without end. Many families can tighten their belts and recover,
but according to the National Foundation for Credit Counseling (NFCC), at least
2 million Americans a year turn to a credit counselor for financial help. Are
you a candidate?
Debt Counselor Help
If you haven't been successful in getting out of debt on
your own, you could be a candidate for debt counseling. But before you jump for
credit card help, consider the following questions:
- Can
you only afford to make the minimum payment on your credit card bills?
- Do
your monthly credit card bills exceed 15% of your take-home pay?
- Do you
forgo paying some creditors to pay others?
- Do you
put routine necessities like groceries on a credit card?
If you answered "yes" to any of these questions, a
debt counselor may be the solution you're looking for.
Finding the Right
Debt Counselor
A debt counselor is a financial professional who will
evaluate your debt situation and help create a strategy to get you out of debt
as quickly as possible. He or she can negotiate lower interest rates and help
get credit card late fees, over-the-limit charges, and other miscellaneous fees
reduced or eliminated. Before you make a selection, have a look at the U.S. Department
of Justice's list of agencies that have been approved to counsel debt clients.
You may have to pay a set-up fee for a debt management program, but you'll be
happy to have someone who is bonded and meets the government's training and
ethical standards.
Learning to live debt-free may take less time than you
think. Sometimes a little professional help is all it takes to get back on
track.
Sources:
DebtAdvice.org
National Foundation for Credit Counseling (NFCC)
About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.
