Cardholders who are struggling with credit card debt often seek out debt relief counseling or assistance from various companies and organizations. While there have been some fraudulent companies who have sought to take advantage of cardholders in a bad situation, new rules from the FTC have stopped certain organizations from collecting upfront debt counseling fees, which is hoped to cut down on scams that were being perpetrated against consumers.
However, there are those who feel that consumers should not turn to debt relief counseling services or nonprofit credit counseling agencies, but should speak with their creditors directly. While there are some people who feel that debt counseling can be beneficial, they too may suggest that consumers first talk to their creditors.
Understandably, many individuals who find themselves in a situation where credit card debt has become a problem may be unsure of what options could be available for their situation. Yet, there has been consumers who have simply talked to their credit card lender and worked out an alternative payment schedule, negotiated interest rate reductions, or in rare cases may have even been offered a principal reduction.
While there are numerous creditors who are willing to work with consumers who may have difficulty repaying their debt, advisers also suggest that consumers be sure that they are not going to be paying more costs in the long run thanks to alternative arrangements with their creditor. There are instances, like when a consumer extends their repayment terms, where interest will have a longer period of time to accrue, thus increasing the total amount a cardholder may owe.
Obviously, cardholders have attempted to avoid added costs to their debt, but in certain situations it may be inevitable. Yet, there are reputable and helpful credit counseling and debt relief services which may be consulted and can be beneficial to consumers who are at a loss for what steps to take when their credit card debt becomes insurmountable. Research online or with resources like the Better Business Bureau can minimize a consumer’s chances working with a fraudulent company, so advisers still feel that finding nonprofit credit counseling agencies or highly regarded debt relief services will only come through proper research.
There are also new rules that require certain debt relief organizations to present an upfront plan concerning a consumer’s debt, which has been agreed to by their creditors. It goes without saying, cardholders who are struggling with credit card debt and use debt counseling services will need to make sure the company they are working with will have their interests in mind and not be interested in simply making a profit from someone in a bad financial position.