If you're behind on credit cards, medical bills, student loans, and other unsecured debts, you may need the services of a credit counseling firm. Here are some common warning signs. You can pay only the minimum balance due on credit cards or you miss the payment altogether. You've drained your savings accounts to pay your bills. You're working a second job to cover debts. You have no extra money on hand for unexpected expenses. Creditors are calling you, and though you try to pay down debts, the amount you owe keeps rising. As an alternative to filing bankruptcy, you might consider a credit counseling agency. These organizations are typically non-profit companies who'll assist you for low or no fees. After examining your financial situation, if you qualify, a credit counseling firm may be able to consolidate your unsecured debts into one payment that you make only to them. Generally, this payment is lower than what it would cost to pay each creditor individually. The company can often negotiate reduced interest on your debts and have late fees waived, breaking the cycle of accelerated debt so you can catch up. You may save money on interest charges and be able to pay off debts much sooner. The agency may also stop collection calls and help repair your credit rating.
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