You have many free and paid credit counseling options. But no matter the cost, it’s always more convenient to get credit counseling online.
Covid-19 is still wreaking havoc on the US economy. At the same time, credit challenges are becoming more pressing. If you have credit card payments coming up, you know too well what we mean. But online credit counseling can help you fight several financial disasters. Foreclosure, rising credit card debt, and plummeting credit scores are all issues credit counselors can help you with.
So, let’s go over the options you have right now for credit counseling online.
Credit Counseling Online For Bankruptcy
One of the most useful times to get credit counseling is when you’re facing bankruptcy.
Bankruptcy isn’t the best option most of the time. But sometimes it’s necessary. Knowing whether or not it’s necessary can be hard to figure out. So, if you’re panicking, you should go to a credit counseling service.
Credit counseling online can help you get a clear plan of action to handle your debt. A professional financial counselor will look over your financial situation. Based on what they see, they may suggest one of several courses of action. If need be, they can even help walk you through the bankruptcy process.
When you’re facing bankruptcy, getting counseling may sound like an impossible option. But most credit counseling agencies will provide a free consultation. That’s the point where they evaluate your finances and determine a plan of action. If you go with a non-profit, you can get free assistance for the entire process.
Debt Management
One of the things your credit counselor may suggest is a debt management plan. These plans are a better option than bankruptcy.
A debt management plan will see you temporarily lose control over your repayments. These “get out of debt” plans will consolidate all your payments into one. They will then collect money from you and disperse your funds among all your credit cards and lenders. Your professionals will also try to negotiate lower interest rates in the meantime. While credit card companies don’t want you to pay less, you paying them less is better for them than you declaring bankruptcy and paying them nothing.
Bankruptcy
Sometimes even the best financial planning and services won’t save you from bankruptcy. If your financial situation is truly desperate, your credit counselors will suggest declaring bankruptcy.
There are several forms of personal bankruptcy in the US. The most common is Chapter 7 liquidation. In any case, your online credit counseling experts can set you on the best path.
Of course, declaring bankruptcy is an extreme option with some serious downsides. A declaration of bankruptcy will stay on your credit report for a decade. It will also tank your credit score and render you unable to use credit for a while.
Credit Counseling Online For Your Mortgage
Another challenge that many Americans have faced even before the COVID-19 crisis is mortgage payments. If you’re struggling with your finances, making mortgage payments can become increasingly strenuous. This is one of the more common and important reasons to reach out to counselors.
Your Options
If you get credit counseling online for your mortgage debt, your options will be the same. But you may receive a different debt management plan than you would with other forms of debt.
Homebuyer loan courses have useful information for those in your situation. In many cases, credit counselors will refer you to educational material. While not always ideal, the resources they send you to should be easy to understand and applicable to your situation.
Where You Can Find Online Credit Counseling
There are many online credit counseling agencies. A quick search can help you find many of them. But it’s important to vet any agency you want to go to carefully.
Many agencies are non-profit, while others operate as a business. In either case, your initial consultation and educational materials should be free. Don’t pay for access to educational information. You can always find these materials for free.
You can check the reputation of any agency you’re considering on neutral platforms like:
- TrustPilot
- The Better Business Bureau.
All reputable credit counseling agencies will be able to help you with the issues discussed above. They should be able to assist you during every step of the bankruptcy process. If that’s not necessary, they should have free educational resources. They should also be able to refer you to trustworthy service providers if they need to. But always make sure you also look into any third parties you are sent to.
The Last Word
What credit counseling services offer is the advice and support you can’t provide yourself. While financial planning is always important, it’s hard to navigate your way back to financial stability if you aren’t a professional. Especially during the current pandemic.
When you need help, don’t hesitate to look for a good credit counseling agency online. You don’t need to leave your home to get the support you need.
