Credit Debt Management Repair Services

Finding trustworthy credit debt management repair services may prove to be a difficult task. There are simply too many bad apples in the barrel. Here are some tips, reviews and links that can help you chose a reliable debt counselor.

What to consider when choosing debt management counseling agency?

• The credit counseling agency should be a non-profit organization
• They should be in business for at least ten years
• Their counselors should be certified by an independent organization such as the National Foundation for Credit Counseling (NFCC)
• The credit counseling agency should be accredited by the Council on Accreditation (COA)

Why is it so important that they be non-profit?
Counselors of trustworthy credit debt management repair services will never pressure you to join any of their Debt Management Programs (DMP), because they do not profit from it.

That doesn’t necessarily mean that the program is free. It may cost up to $40 per month, but ONLY if you can afford it. In many cases they wave off the first 6 months’ fee, or even more.

In addition, their counselors will discuss your entire financial situation and help you develop a plan based on the best option for your personal financial needs. They will also offer free education on personal finance, using credit and more.

Can credit debt management repair services help me negotiate better terms?
Yes. They can certainly help you negotiate reduced interest rates and payments. It’s part of the program. As a general rule, they can reduce your total monthly payment down to 2% of your total debt, and can also reduce the interest rates to around 10%. You must however stop using credit when you enter the program.

What happens when I join a DMP?
While you’re on a debt management program, the status of your credit reports will update to show “In Debt Management Program“, which might disqualify you from getting new credit (especially mortgage). However, your Fico score will not be effected by this (See Factors Excluded from the Fico Score).
When you complete the program, that status will be removed from your files, so you will be eligible once again.

Which are the most reliable credit debt management repair services?
The largest non-profit credit counseling service is Money Management International. They have offices in more than 24 states, and offer counseling 24 hours, 7 days a week over the phone as well as the Internet.

The National Foundation for Credit Counseling (NFCC) is another highly reputable non-profit credit counseling service (Previously known as the Consumer Credit Counseling Service (CCCS)). It was set up by the credit card industry to offer assistance to people who are struggling to pay their credit card debts.

The NFCC is also a certified pre-bankruptcy counseling, so their counselors can look at your whole financial picture and advise you on how to proceed.

They can negotiate lower interest rates and payments so that you can pay off your debt. By the time you complete their program, you will have decent credit. Most reviews basically call them angels from above.