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Credit Report & Credit Score; Credit Repair, Debt Management > Credit Score > Taking Advantage of the Wonders Credit Counseling

Taking Advantage of the Wonders Credit Counseling

By Ruth Racey
Published: Saturday, October 17th, 2009

Sometimes sustaining a good credit score or increasing it to a much desirable level gets to be too much to handle. It is a good thing that there are organizations that offer help for such need. Their credit counseling services are quite essential for us to keep our charge accounts on the right track.

Having many bills and line of credit from a number of companies sometimes makes it hard to keep track of each one. You would have trouble remembering which company needs to be paid with what amount. If you would take on the services of an organization meant to help you out in this type of problem, a program will be put into place that consolidates all your bills into one low monthly payment. You will forward this payment to the organization, which in turn will distribute the proper amounts to the companies.

This will take away all the hassles from paying your bills every month. Aside from this, the payments will also be considerably lower because your credit counselor will arrange with all your creditors for smaller amounts to be paid every month. However, going to a debt counselor might not be right for everyone because this could come with hefty interest rates and fees.

To get the right deal out of consolidating all your bills into a single payment, see to it that you can pay off the entire amount in two to three years. If the terms indicate that you would have to pay it off in five years or more, then this is not the best option to go for. Lengthier payment terms also mean bigger interest rates and fees.

Another great thing about credit counseling is that it increases your credit rating for an array of reasons. An example of this is if you pay your one time debt with the help of a debt consolidation company before the due date, all your bills are actually paid off in just one time and early at that.

Since this will be stated on your credit report, this could be viewed by credit companies and you will be rewarded for responsibly paying your bills before schedule. Even if all your debts were consolidated to one payment, this credit statement will still be true because all of your creditors got their money on time.

Although a lot of people believe that approaching debt consolidation companies could affect and lower your credit score, now you know that this is not true. Using the services of this kind of company actually shows responsible thinking on your part and is beneficial in a number of ways.

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