This Service Called "Debt Counseling" - Can It Help Me Out?

Yes - debt counseling can without a doubt be that well-needed catalyst to sew and mend your financial wounds. But truth is, this financial mediator acts as a dualistic character, one capable to both assist and heal as well as hurt and trick you. In terms of assistance, debt counseling is unquestionably an extremely viable and resolving option to opt for as it is and has frequently been pursued by many individuals with weak and cluttered financial statuses looking for financial healing and strengthening.

And through the process of debt counseling these dismal and rickety situations have more often than not morphed into hopeful, more sturdy ones. This is so thanks to debt being organized and corralled together (through the aid of an agency) where they're systematically negotiated and gradually whittled down, leaving them satisfied and finally resolved. And thank goodness. No problem anymore. At least you'd like to think so...

Dualism In Debt Counseling Servicers

Consider the above and previously mentioned dualistic trait - take to mind that there are aspects of trickery at play here as well despite the salient and beneficial assistance factors. In the world of debt counseling you can easily find genuine and assistive options, but you can also find yourself walking into well-placed traps as well. The reality is that debt counseling scams are out there and if lack of awareness is present and such knowledge is not not taken into consideration you could find yourself in a bigger financial mess than you previously were.

What To Expect Through A True Debt Counseling Service: A Rundown

In a case where debt counseling is pursued through a trustworthy and upstanding agency, you can expect a few procedures and outcomes. What occurs through this process is a collection of money from the borrower -being you- through a specific agency with intent to disburse the collected funds to the involved various creditors. Through this counseling period keep in mind that the working agency pulls a portion of the collected money for covering their attached service costs. Also, expect to see and be notified of the counseling agency conducting negotiations with your lenders and/or creditors, specifically focusing on reaching agreements toward reductions in the total amount due and/or charged interest rates.

It's also important to know two more aspects to this debt counseling process: the time involved and how it affects your credit history. In terms of time, as a borrower, it should take you no longer than 5 years (through fixed payments) to pay off all debt. And depending how responsible and timely you are with your agency through the counseling term, it could be possible for creditors to report negative comments about you to credit bureaus, and subsequently hurt your credit report.

Now, Know What To Avoid: Scams and Schemes

Disappointingly enough, debt counseling offerings aren't all sunshine and flowers - realistically, there's a bit of a raincloud over the industry's head. Scams and schemes alike are all very real and quite continual within the debt counseling industry. The cold truth is that there's an abundant presence of financial predators running rampant, all of whom are ripping off those already owing money to creditors. The outlook is bleak, full of unrealistic promises and questionable practices.

What happens on the end of debt counseling scammers and schemers involves a direct putting up of a polished, sparkling facade, one presented in a most assured manner, all to make you feel comfortable to commit to their services. The way to distinguish such facades and not get caught up in such a con is by paying attention to what's being offered. When a debt counseling scam is put in front of you expect to see a few particulars: fees being charged upfront, monumental healing promises and declarations of how easy repayment processes are. How borrowers get scammed is through two scenarios: agencies disappear completely (with the borrower's money in toe) or agencies flat out lack to fulfill contracted promises.

So, do yourself a financial favor and take the above cautionary details -as disappointing as they are- into consideration to avoid falling for scams. Be careful and be sure to choose genuine debt counseling options.