Guidance On Consolidated Credit Counseling Services - By: Andrew Emerson

Consolidated Credit Counseling - Some Information

It's easy to let your credit card debt get overwhelming. This doesn't mean you're a shopaholic, addicted to the thrill of the hunt and feeling forced into buying items on total impulse, watching packages stack up unopened and unneeded. In a bad economy many families are forced into using credit cards for things they never would have used them for before such as weekly grocery shopping, coffee shop runs, or even paying other bills using a credit card. When bills pile up, consolidated credit counselling might be a good option for you.

Consolidating credit is nothing more than including all your monthly bills into one payment and then in turn paying a service to pay your bills. A reliable service will do this as you freeze your accounts and allow a professional to manage your bills. This might be your last chance of recovery before being forced into bankruptcy.

First, check out some local non profit agencies that specialize in this kind of credit counseling. Many companies exist, especially online. Do your research, though. The thought of having all your bills lowered and consolidated is sometimes such a driving force that many consumers end up signing on with companies that do thing more than cause further problems.

One of the scams involves companies that actually do absolutely nothing for you. These are usually online sites that have very professional looking information, testimonials from supposed clients, and lots of disclosure information about what they do and how this could affect your credit - all things one would expect to see in a legitimate business of this nature.

However, what they do is take your money and run. They simply take your application, perhaps communicate via email or even a few phone calls, wait an appreciate period of time, and then tell you everything has been fixed. They then give you a new figure for what your monthly payment will be, and you are instructed to send them this money.

Of course, the assumption is that they will, in turn, be paying each of your creditors the amount they have allegedly negotiated for with this agency. In reality, the company hasn't contacted anyone at all, there is no new lower payment, and your money is doing nothing but fattening the bank account of the scammer who set up the website. By the time you realize there is a problem, which is usually about two months, these people are gone. The website is down and back up under another name, doing the same thing.

You find out what has happened only because your creditors start calling wondering why you haven't paid your bill! Then you discover they have never been contacted by any company acting on your behalf in order to reduce your payments.

On top of that, you are now being penalized with a higher APR because you have defaulted! Be careful who you ask for help!

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