Debt Counseling: Find Debt Consulting Services Near You

Posted on November 23, 2021 in Debt

If your debt has you feeling that your finances are out of control, it may be time for you to do something different. Knowing your debt is out of control is one thing, but nothing will change until you take the action needed to get things back on track. That’s where debt counseling, also known as credit counseling can help.

The first thing you need to know is that you are not alone. Thousands of people daily are overwhelmed with their debt and don’t know where to turn. Working with a good credit counseling agency can help you take the necessary steps to get your finances back under control.

What Is Debt Counseling?

Debt counseling is the process of sitting down with a counselor experienced in debt management. Because they understand your situation and know what the options are, they can help you understand your options and work with you to eliminate your debt. They can help you with a plan to get your finances back under control.

Some of the options people have to manage or eliminate their debt through debt counseling are debt consolidation, debt management, debt settlement and bankruptcy. The objective of counseling is to find the option that works best for your unique situation.

Debt Consolidation

A debt consolidation loan is a loan that combines multiple debt obligations into one single loan. A debt consolidation loan usually has lower interest rates than many of the existing debts. They also allow you to make only one payment per month instead of many.

Debt Management

The goal of a debt management plan is to pay off your debt in full. With the help of a debt management agency, creditors will agree to reduce interest, waive fees, and may re-age your account after a specified number of payments.  In addition, creditors may reduce minimum monthly payments.  The plan must be structured to have the debt paid in full within 60 months. Once enrolled in a plan, regular monthly deposits of a set amount are made to your debt management agency. The agency will distribute payment to your creditors until the debt is paid in full.  Although there may be fees involved, they are usually more reasonable than a debt settlement company.  Debt management agencies are non-profit organizations, and fees are regulated by the state.

Debt Settlement

A debt settlement company will try to negotiate with your creditors to accept a lump sum payment less than what you currently owe.  You will have to make regular payments toward your new negotiated payment.  While that is a good thing, during this time, your creditors are not getting paid. Your credit score is dropping, even though your creditors agree to take the lump sum. Usually, a statement will appear on your credit report noting that you paid less than what was owed, which will negatively impact your credit. The IRS may consider the forgiven debt as taxable income, and the debt settlement company will collect a fee from you, usually 15-25% of your settled debt.

Balance Transfer

If you’re struggling with credit card debt, you could consider a credit card with an introductory 0% APR balance transfer offer. This option gives you some time to pay down your debt without paying interest on it.

Bankruptcy

For many people with growing debt that’s unbearable to manage, they quickly feel that bankruptcy is the answer. But just as with any other option, there are consequences to filing bankruptcy. If done for the right reason, and after evaluating all your other options, bankruptcy can provide some relief by eliminating certain debts. On the downside, bankruptcy will stay on your credit report for seven to ten years. 

Is Debt Counselling a Good Idea?

Debt counseling helps make monthly payments more manageable. That could mean replacing debt with a loan that has different terms that include waived fees, a lower interest rate, or reducing the balance, or extending the loan term, or debt negotiation. It’s important to understand the potential risks and benefits of any debt resolution before deciding on the one to proceed with. Most of the solutions are long-term solutions meant to help you get out of debt over several years. Debt counseling is always a good idea as long as all options have been thoroughly reviewed against your circumstance. That’s why it’s a great idea to talk to the professional debt counselors at TurboDebt.

What Does Debt Counseling Look Like?

At TurboDebt, a debt counseling session entails three main elements:

Strategic Planning – They examine your overall financial picture to understand the challenges you face in finding financial security. They then strategize the best money management plan to become debt-free in the shortest amount of time. Get in touch to learn more about how this service can help you recover from debt and achieve your financial goals.

Advising – While change is difficult, it is often necessary to achieve debt recovery. Balancing priorities is the key to success. Breaking free of the debt cycle is a big step, but the benefits of a stress-free, debt-free life are well worth any short-term disruption in the status quo.

Consulting – With years of experience, their staff works to help you settle your debt and recover financially. At TurboDebt, they combine their insights and skills to transform your processes and strategies into a manageable game plan for security and stability.

Which Debt Repayment Method Is Right for Me?

TurboDebt is a debt consulting service that can help you take control of your finances and work towards a debt-free life. The company can help you with debt recovery in implementing effective strategies and low-cost solutions to eliminate debt. They understand that one size does not fit all when it comes to helping individuals and families with debt, and recognize the need for clients to have choices. They connect clients to debt relief programs that fit their unique needs. To know the right method for your circumstance will take a few action steps:

  1. Answer a few quick questions about your debt relief goals.
  2. Get your free consultation with one of their representatives.
  3. Choose the debt relief program that best meets your needs.

Get your free consultation today or call 1-866-830-5449!

Conclusion on Debt Counseling

With the pandemic, most people’s finances took a hit. If you’re working to manage a heavier credit card debt than you had a year or two ago, you’re certainly not alone. Seeking credit counseling is a step in the right direction. You’re on the right track. If you’re looking for more resources to help ease your financial burden, They can help get you there. They offer:

  • 100% free consultation
  • A no-obligation free savings estimate
  • Assurance of being debt-free in as little as 12-48 months
  • Alternatives to bankruptcy

At TurboDebt, their focus is on understanding your immediate and future goals and is the basis of the free initial consultation. Through their partnerships with multiple debt programs, They seek to offer the most effective debt relief solutions available to consumers. Take advantage of a free savings estimate with no obligation, and find debt relief in your state today.

You can be one of the thousands who benefit from debt relief this year. Get your free consultation TODAY or call 1-866-830-5449!

Frequently Asked Questions About Debt Counseling

Is debt counseling free?

The fees will vary depending on the agency, but there’s typically a set-up fee and a monthly fee.

Does debt counseling affect your credit score?

Debt counseling may affect your credit score, but the degree of the effect depends on the type of debt solution you choose.

How can you get the most out of credit counseling services?

To get the most out of credit counseling, come prepared with as much information about your financial situation as possible. That will help ensure your credit counselor has all the information needed to give you personalized advice for your situation. On top of that, timing is key. You don’t want to feel rushed or anxious, so set a time that works for you and won’t interfere with other priorities like work and school.

How much debt is too much?

A good rule of thumb with mortgages or renting is that payments should not exceed more than 31% of your gross income. If you have more than 19% of your gross income going to debt, that’s at least 50% of your gross income. You want 20% of your net income to go toward financial priorities, including debt payments.

How can I avoid building up debt?

Track your spending. When we write down what we’re doing with our money, we tend to make changes. Make a spending and savings plan, and review it monthly.

What do I need for my initial consultation session?

Know how much money you spend each month. That includes living expenses, like utilities, food, gas, etc., and how much money comes into the household each month.

Will my information be kept confidential?

Yes. Your information is not reported to the credit bureaus and is not shared without your permission. Should you begin a debt management program, your consent will need to be obtained before arrangements are made with creditors.

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