Hope for Better Finances With Consumer Credit Counseling San Luis Obispo

With the economy not recovering as fast as it needs to be, many people are falling into dire straits when it comes to their finances. Some resort to selling off their property, some opt to relocate and find better income generating methods elsewhere, while some have no choice but to file for bankruptcy. While being bankrupt seems to be something that used to be frowned upon and embarrassing to most people, these days, it seems to be a viable option for people with very limited options. But are the options really that limited, though?

Financial advice can now be taken advantage of through different channels, and during these times when people are having difficulty with their finances, consumer credit counseling San Luis Obispo is a good alternative to other measures like filing bankruptcy. With professional counseling, you can get education on finances and debt education according to the situation you are in.

Consulting with a consumer credit firm should provide you with an assessment of your level of debt and design a personalized plan based on the amount of money you earn. Credit counselors may even get you a lower interest rate and negotiate with creditors on your behalf.

So, is there hope for better finances with consumer credit counseling San Luis Obispo? How does it work? It starts off by the counselor analyzing your current financial situation. This includes how many accounts you have, their balances, the minimum payments that they require, when they are due, and the presence of any past due accounts. Then, your monthly income is compared to the bills that need to be paid. This information is used to make a debt management plan to pay all debts. This plan is then sent for approval to all creditors concerned.

If any of your creditors approves the plan forwarded by the credit counsellor, you can make payments to the agency. What makes this work is that since the agency knows the state of your financial health, you would be able to manage the payments easily. The credit counselor should then forward the payments to your creditors in accordance to the management plan you have agreed on.

In ideal cases, the credit accounts will be closed to additional charges, as long as the payments according to your debt management plan are on track. That said, if you are negligent with your payments or if you are late in forwarding money to creditors, the agency will cancel your management plan and reinstate the interest rates and minimum payment.

As for costs, many consumer credit counseling San Luis Obispo agencies tag themselves as non-profit organizations. However, if you are looking on taking advantage of their services, take note that being non-profit does not necessarily mean that the services they provide are for free. In most cases, they charge a fee, albeit a manageable amount, especially for those who are in a financial fix. There are some agencies that get their fees from the first payment you make. On the other hand, there are also those that get a flat amount from each of your monthly payments.

When trying to hire a credit counseling expert to help you, remember not to pay anything just to get information about a company or the services they offer. You should be able to obtain that for free. You may start paying for their services once they have actually started implementing a debt management plan they have made for you.