Meet Don, a typical American in debt, troubled by a delicate financial situation. Don here is soaked to the bone, drowning in an overwhelming financial sea. He’s been floating in the water for too long, exhausted from fighting endless waves of payout and constant water, splashing, hitting his face, going into his mouth. Choking, not being able to pay on time and struggling to stay afloat are his daily occurrences: he practically bobs up and down like a beached buoy. And Don isn’t the only one helplessly swinging and struggling around. Don is simply one of the drenched and stranded majority: millions and thousands of other buoy-floaters (or credit-debt individuals) are lost in this very real, but unknown, financial sea. Undoubtedly, turbulent times are ahead and Don, as well as the rest of the float group, need rescuing.
Floating assistance and boarding on a dry credit counseling ship
Sailing the same seas in which so many are struggling, credit counseling fleets abound, seeking to pick up as many “drenched in debt” people as possible. What they do provide is some guaranteed buoyancy, improved assistance, and an outstretched, saving hand to your dry and complacent boat. And, despite how many buoys there are, it’s not impossible to get on board, dry off, and get help with your deep and soggy credit situation. All these buoy-like individuals, floating aimlessly, can easily be picked up and pulled out of such an unforgiving ocean of money: it’s just a matter of waving them around, calling for help, just tagging yourself for rescue.
When to dial the credit counseling fleet your way
Many people who are having trouble staying afloat will turn down these fleets, but many of them don’t need credit counseling to save them; some people just need financial assistance. How to know if you are really a buoy specific individual deserving to mark a passing boat is pretty easy.
If you can pay your bills and pay all your bills on time, the last thing you need is credit counseling. The same is true for people just looking for a lower rate – this can be done by negotiating through you and your credit card companies, not through the help of a credit counseling company.
two
The circumstances that qualify you for rescue by credit counseling fleets include many scenarios. Above all, you will obviously have to be in the middle of these debt-infested waters, wading up to your chin and about to sink forever. There are specific cases that require you to take action, fire up your style, and signal your location. Flag the first boat that passes if 1. you can’t make the minimum payments on your credit cards, 2. you consistently pay one or some of your bills late, 3. collection agencies and creditors harass you, and 4. your Efforts to discuss a workable payment plan with creditors have stalled or failed altogether.
Dry off on board and familiarize yourself with your credit counseling ship
First, congratulations. She has managed to pull herself out of the sea of financial despair and onto the deck of a credit counseling ship. She’s drying up, but while she’s at it, it’s important that you become familiar with exactly what will happen, particularly knowing how you will receive financial assistance and the steps that will be taken to do so.
Once on board, the credit counseling team will contact your creditors and lenders to discuss with them. The intent here is to talk to them in a better way, that is, to negotiate lower, more manageable payments that are spread out over time. Once negotiations are complete, your credit counseling team will coordinate the structuring of your payments, outlining specifically how and how much you will pay them (or, more importantly, transfer) each month for a certain period of years.
Helping Dons and other buoy-like individuals through the credit counseling process above is a gradual, but guaranteed, elimination of debt, with the goal of getting people out of debt forever. However, this takes years, ideally 2-4 to complete. If a credit counseling motion is expected to take longer (5 years or more) in your scenario, then embarking on a credit counseling ship might not be the best idea for you. Instead, waiting out the dreaded bankrupt fleet could be your last chance for rescue.