Living paycheck to paycheck? Worried about
debt collectors? Cant seem to develop a workable budget,
let alone save money for retirement? If this sounds familiar,
you may want to consider the services of a Debt Consolidation
Debt Consolidation may offer educational
materials and workshops, or help you develop a budget. Many
offer services nationwide through local offices or the Internet.
Look under "debt consolidation" or "credit counseling"
in your telephone directory or your Internet search engine.
Debt Repayment Plans
If your financial difficulties
arise from too much debt or an inability to repay your debts,
they may work out a Debt Repayment Plan for you. In these plans,
you deposit money each month with the company. Your deposits
are used to pay your creditors according to a payment schedule
the counselor develops with you.
As part of the repayment plan, you may have
to agree not to apply for or use any additional
credit while youre participating in the program. A successful
repayment plan requires you to make regular, timely payments,
and could take 48 months or longer to complete. Most companies
charge a monthly fee that could add up to a significant charge
A debt repayment plan does not erase your credit
history. Under the Fair Credit Reporting Act, accurate information
about your accounts can stay on your credit report for up to
seven years. A bankruptcy can stay on your report for ten years.
In addition, your creditors will continue to report information
about accounts that are handled through a debt repayment plan.
For example, creditors may report that an account is in financial
counseling, that payments have been missed, or that there are
write-offs or other concessions. But a demonstrated pattern
of timely payments should help you get credit in the future.