but, i’m in too deep!

On top of that $5,000 on my credit card, I’m about to start paying off my two college degrees. Not to mention that I owe people money and I want a new outfit for my best friend’s wedding. Sigh... I’m afraid I may have dug my hole too deep. If the gap between the money that is going toward my bills and the money coming in is too big, there’s help.

There seems to be a counselor for everything. A credit counselor will help you manage your debt. They will help you set up a debt-management plan (DMP). The DMP will help handle your debt and perhaps consolidate and reduce credit card payments. It can even help lower interest rate charges.

Hopefully, you can get a hold of your debt before it gets out of hand. You may also realize you can wear that dress that you wore last year to your sister graduation to the wedding. Or you can work with the processor and RAM you already have. You don’t need anything new.

Watch for shady credit counseling services

     Here are some tips... 
     Don't talk with companies that charging expensive fees for their services. Check out what is allowable by state law. You don’t want to be out more money, do you?
     Get their full disclosure: a written statement with fees, main source of funding, creditor concessions, amount to be disbursed, how long the DMP will last (no more than 48 months), and possible impact on credit reports. 
     The company should also have quality customer service. You’d like to be able to call on weekends and some evenings and receive monthly DMP statements. The payments should also arrive to the creditor by the due date. 
     Lastly, check out the company with the Better Business Bureau. See if anyone complained about them. If it’s all good, work with the company.
    

And maybe, there will be one less thing that compares me to my mother.

credit counseling

One great service is the Consumer Credit Counseling Service (1-800-388-CCCS). They can help you find options to deal with your debt. They’ll work with your income and your list of expenses to help you get out of that hole.

Also, ask the people at your credit union for a referral. You can also check listings at nfcc.org (National Foundation for Credit Counseling) or aiccca.org (Association of Independent Consumer Credit Counseling Agencies).

Make sure it’s a nonprofit and accredited by an organization such as the Council on Accreditation. The services should cover your income, expenses, debt, reasons for your financial issues, and your goals. This should all be explained to you clearly.

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