Consumer Debt Counseling Is Not All Talk But Learning How To Make Things Right
Consumer debt counseling is all over the place but you have to be careful choosing the best one. For example, if you are planning on buying a major item like a house or a car, it is good to get some tips on how to get it right because there are ways to make the purchase better for you and your family.
Before you get the loan, consider becoming a qualified buyer. Have you heard of qualified buyer on TV ads? It looks like qualified buyers get all the chances. They get their purchases at the lowest possible interest rate. But really, it is not by chance that they become qualified buyers to buy a home or a car.
So, how does one become a qualified buyer? The consumer debt counseling will tell you that those who have the best credit scores get the best rates. Don't despair, if yours is not good now. There are things you can do to make it better. You can do something to make your credit score help you get the best deals. Here's how:
The first thing to do is to get a copy of the credit report. You can get this once a year for free.
Reduce the credit card debt. Why? The closer the amount owed to maxing out the credit cards, the lower is the credit score.
Pay all the bills on time. The lender loves looking at your payment history. They find this most important.
Here's where the consumer debt counseling can come in handy for they can give legal and practical advise on how to use credit wisely. They can talk to your creditors and renegotiate your loans. And to top it all, they can also arrange to pay off your debts.
That is why care must be taken as to the right consumer debt counseling to choose. Some are legitimate and others are not. Some may charge you a lot and heaven forbid, they may not send your payment on time. This will wreck havoc to your financial health and may leave you worse off than before.
There are many places that will make money available to you. Some are okay but others may make your debt last long so they can get more of your money but a bank may allow you to borrow a small amount of unsecured loan if you have a good credit.
How about a secured loan? It is a loan with a guarantee of a personal property like a car or a house. Now a credit union may be better for you as they may offer a loan with a lower interest rate, that is if you join. Finance companies, on the other hand, charge higher interest rate if the credit rating is not good.
Be wary of loans with a high interest especially if they make you pay up-front. This is a sign of a scam. Also be sure that you read the whole contract and that you understand everything before you sign on the dotted line. Be careful too when dealing with payday lenders, money shops, pawnshop, storefront lender, title pawn company and loan sharks.
The National Foundation for Credit Counseling can help you find a company that is reputable near where you live. Here's their phone number: 1-800-388-2227. You can also access them on the web at http://www.nfcc.org. This way, you can check the reputation of the one giving you some consumer debt counseling.
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