Credit Counseling Review

Prepare for credit counseling to save time, and help your counselor give you the best advice.

Here are the basic steps to prepare for credit counseling:

Make the initial contact
Prepare a draft of your current household budget
Gather together:
- payroll stubs (last one for each income source)
- last 2 years of tax returns
- copy of last received billing statements on all debts, utilities, mortgage, car payment, etc.
Prepare a list of your assets with an estimate of current market value
First consultation (by phone or in person)

During your first consultation you may be told whether or not you qualify for their services (yes, you do have to qualify). However, if the counselor needs to do a deeper review of your financial situation after the first consultation, it could take longer to notify you.

Qualifying for The Debt Management Program is usually pretty straightforward:

you may have to meet a qualified unsecured debt minimum;
you must place all qualified unsecured debt into the program; and
all parties must be able to maintain reasonable payment expectations, including how long it will take to pay off your debts and your monthly payment amount.

After your first consultation, the debt consolidation service may obtain a copy of your credit report, contact creditors, prepare a list of recommendations, and draft the Debt Management Agreement (DMA) outlining what they will do, what you need to pay, etc.

At this point, you will likely have another consultation, again free, either by phone or in person. You will receive a copy of the proposed DMA to review, and accept, if you decide to use their services.

Making Payments For Credit Counseling

If you enter into a Debt Management Agreement with CCCS, you will be making monthly payments directly to them. They will deposit your payment in their escrow account, then issue checks to your creditors in accordance with the DMA each month.

In most instances, you can make weekly instead of monthly payments if it fits into your budget better. The only restriction is you need to make sure the minimum monthly payment is paid on time.

If you are absolutely overwhelmed with credit card debt, then you need to check out debt consolidation/settlement. For a free consultation, click here.

CareOne offers consumer credit counseling.

Return to Consumer Credit Counseling Facts and Articles

Return to the top of Credit Counseling Review

Getting The Answers You Need

Need help to get your expenses under control fast? Check this out.

Be sure and check out the various debt solution reviews, tips, and articles provided on DebtSteps.com:

Find Your Solution offers a comprehensive list of reviews to get out of debt once and for all. Get answers on bankruptcy, consumer credit counseling, debt settlement, money management, budgeting, loans and mortgages.

Debt Relief Tips & Articles to guide you on your way to financial freedom. Get the lowdown on dealing with debt collectors, handling money problems, understanding your credit, and more.