Debt Solution Source

Credit counseling is a viable alternative for people considering bankruptcy or under pressure to make ends meet. Consumer credit counseling is an exceptional choice for young adults venturing away from home or newly married couples wanting to start off on the right financial foot.

Credit counseling services are available in most metropolitan cities. Most agencies charge fees for consultations and services. Individuals unable to afford counseling can seek help through non-profit agencies offering no- or low-cost services.

Although the economy has improved, many people are facing serious financial challenges. Many are turning to personal bankruptcy to stop creditor harassment or avoid foreclosure. Personal bankruptcy should be the last resort whenever possible. In addition to being reflected in credit scores, bankruptcy can prevent borrowers from obtaining credit for years to come.

In 2005, Congress enacted new bankruptcy laws which permanently altered the way consumers could obtain protection from creditors. The Bankruptcy Abuse Prevention and Consumer Protection Act require debtors to undergo credit counseling through an U.S. Trustee approved agency before bankruptcy approval is granted.

The U.S. Trustee Program is governed by the Department of Justice. Credit counseling services must abide by federal law and provide services to those who qualify. Personal money management experts suggest using an approved credit counseling agency prior to submitting a bankruptcy petition. Counseling could allow debtors to avoid bankruptcy. If not, BAPCPA credit counseling requirements will be met.

Individuals who obtain consumer credit counseling from providers outside the trustee program should take time to investigate the agency prior to signing a contract. One trustworthy source for verifying business credentials is the Better Business Bureau. The BBB provides basic business information and can verify if the company is in good standing or if complaints have been filed.

Another trustworthy source for credit information is MyMoney.gov. Founded by the U.S. Financial Literacy and Education Commission, this program provides a complimentary “My Money” toolkit consisting of pamphlets and a vast assortment of personal money management information and resources.

A lesser used, but highly reliable source for solid credit information is public libraries. In addition to books, libraries often loan an assortment of home study courses on household budgeting, debt consolidation, eliminating credit card debt and building investment portfolios.

Conquering debt and gaining control of finances is empowering. Education is the key to breaking through credit challenges. Take time to learn about personal money management strategies. Listen to Dave Ramsey or Suze Orman or borrow their books or videos from the library. Within hours you can discover how to pay off credit cards, eliminate outstanding debts, develop an investment portfolio, and become an expert in finances!

Suze Orman’s Debt Consolidation Tips

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