If you are looking for a credit counseling service it is likely that you are already in financial danger. When a counseling service offers easy solutions to your problems, it can be hard not to believe them, especially if you're on the verge of bankruptcy. In this article I will talk about credit counseling services and what you should know about them.

There are a number of good credit counseling services available, and they can greatly help you get back on your feet. However, you have to exercise caution because there are many services that are looking to take advantage of people who are already in a bad situation. Credit counseling services are good to use if you're in a situation where you are not able to make your minimum monthly payments on loans or credit cards. Many people in this situation may already be receiving phone calls from collection agencies.

Credit counseling services typically deal with unsecured credit cards or loans. They do not work with secured loans, and this includes loans such as mortgages. They will look at how much you owe in order to set up a payment plan that suits your needs. They will also set up a budget for you. If you are on the verge of losing your home, they can provide advice for how to contact your lenders to request more time for making your payments.

If the credit counseling service is able to negotiate with your lenders, you will need to set up a budget in order to make your payments. Under these circumstances credit counseling services can be a great resource to help you. However, if they are not able to negotiate with your lenders, and it seems there is nothing you can do to catch up with your payments, it may be time to consider filing for debt consolidation or bankruptcy.

The first thing a credit counseling service will do is analyze your financial situation. They will then attempt to get your lenders to lower the interest rates. They will help you manage your debt, and you may have to pay them money that they will apply towards paying off the loans you have. These services make their money by charging fees for helping clients and helping creditors by setting up payment plans that allow the consumers to make payments. Many lenders will pay fees to credit counseling services who assist them.

When you are looking for a credit counseling service, there are certain things you should look for to make sure they are honest. Any service which charges high fees up front are often more concerned with making money than with helping you manage your debt. You should also be wary of companies that make outrageous promises. Any service that makes such claims is often fraudulent. If they make claims saying that their services will have no effect on your credit rating, this should be a cause for concern.

If the credit counseling service is helping your manage your debt, they should be able to make payments in a timely manner. The best way to choose a credit counseling service is to look for institutions that are listed in the National Foundation for Credit Counseling. If they are not listed, they may be a fly by night operation, something you will want to avoid. While the chances of an accredited institution defrauding you is low, you should still research them to make sure there are no problems.

Being in a financial strain is hard enough as it is. You don't want to use a credit counseling service which will add insult to injury by defrauding you.

Joe Kenny writes for the credit card information site http://www.cardguide.co.uk, visit them today for more credit card articles.