Confused? FAQs On Debt Relief Counseling Answered

Personal debt is at an all-time high in the United States right now. If you are in debt, you are not alone. If you are unsure about which debt-relief option to take to acquire yourself out of debt, you are not alone then either. There are many options to take and it could acquire confusing when trying to decide which is best for you. One of the most common options is debt relief counseling. This article would answer your most frequently asked questions to assist make your decision more clear.

FAQ #1 - What is Debt Relief Counseling?

It is counseling specifically aimed at acquiring you out of debt. It is really significant that you are completely open and honest about all of your debt and discuss it with your counselor. The counselor would look at your financial situation and make a plan so you could pay it off in the easiest and quickest way possible with the least amount of damage to your credit.

FAQ #2 - Where do you check it?

The three most reliable ways to check debt relief counseling is to ask someone you know who has gone through this for a reference, look in the phone book for a local agency, and look online. If you happen to know someone you trust that has had counseling, you could just ask them if they would recommend their counselor. If you do not prefer any friends or family to know you are in debt, just try the second option of looking in the phone book. Look under "Financial Services" and you would see agencies that advertise their counseling services there.

The third option is looking online. When looking online, you would check agencies that you must talk with on the phone, but you may also check a local agency. If you check a debt relief counseling service online, be sure you still do the counseling by phone - not just e-mail.

FAQ #3 - Who Does the Counseling

Before you sign any papers to agree to debt relief counseling, be sure that the person is a certified counselor in debt management or has been certified and is supervised by a counselor. do not waste your time and money and do not take advice from anyone who is not certified.

FAQ #5 - How Long Does It Take?

Your first session should take about an hour. This is when you would take your information to the counselor and explain what debts you have. They would check to see if they have all the information they need and ask you to bring more if they see that they need it. The counselor would also take this time to explain what services they offer and how they would be able to assist you.

FAQ #4 - How Many Times Do You Go?

You may have to have several sessions with the counselor at first while they are putting together your financial plan. After that, you should have to check in occasionally to be sure everything is going according to your plan. The average time to pay off debt is about three years; of course, this all depends on the amount of debt that you have.

FAQ #5 - Is Debt Relief Counseling a Good Thing to Do?

When you consider your options, which are bankruptcy and debt settlement, counseling is a good alternative. Bankruptcy and Debt settlement leave a much bigger negative mark on your credit score and affect your score for up to ten years. Bankruptcy is a matter of public record and debt relief counseling is not. So if you do not prefer anyone to know that you are having debt problems, it as also a better option for that reason.

Now that you have had your most frequently asked questions answered, you could make a much more informed decision about how to acquire out of debt Make a decision today and begin putting your finances back in order. Who knows, by this time next year, you may have your debt paid off!