What to look for in a CREDIT COUNSELOR
At Credit Report Blog (Creditreportblog.com), many readers write in about having heard of credit counseling agencies and ask whether they really are helpful and even make sense to hire, when you are already up to your neck in debt. People think of the services of a credit counselor as another bill to pay. If you are one of many Americans living paycheck to paycheck, worried about calls from debt collectors and not being able to work out a suitable repayment plan, then a credit counselor could be the answer. However, you have to be very careful when choosing a counseling service. Many credit counseling organizations claim to be non-profit but actually end up charging high fees that are sometimes hidden or suggest solutions that cause the person to go deeper into debt.
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When do you need a credit counselor?
If you can pay your bills on time and are current on all your payments, you certainly do not need a credit counselor. Some indications that you may require the aid of a credit counselor are:
1. If you are not able to pay the minimum payments on your account.
2. If you are constantly late paying one or more of your regular bills.
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Fraudulent credit repair services?
You see ads all the time on tv, radio, the internet, and fliers, promising you services (for a fee) to “erase your bad credit”. These companies offer to remove bankruptcies, liens and bad loans from your credit forever. Some even go as far as offering to “create a new identity for you–legally.
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