There are a lot of questions that come up when one starts looking at their finances. If you are like many people in today’s society, your financial situation is bleak. Today’s economy is tough and more and more people are realizing that they are severely in debt.  If you are thinking that filing bankruptcy is your only option than you should know that there may be another option for you: debt consolidation.



It is important that you look at all the options when it comes to your finances as bankruptcy is a big thing to declare. For one thing, bankruptcy is essentially going to ruin your credit standing for a number of years. It is going to have a definite negative effect on your ability to qualify for loans for a home, a vehicle, or any other form of lending you may need.  Before you file for bankruptcy you should go see a credit counselor as they can help you find an alternate way of handling your debt.


Credit counseling may be able to save you from having to file for bankruptcy. It may save you from having to struggle to re-establish a good credit rating. When it comes to a debt consolidation credit counseling agency, it is important that you know what they are and what they can do for you.



What is a debt consolidation credit counseling agency?


A debt consolidation credit counseling agency is formed for the purpose of assisting ordinary people who find themselves unable to meet the debts they have incurred.  The agency is staffed by counselors who have been trained to educate and give you advice on how to successfully manage your finances. These agencies provide a variety of different services depending upon your circumstances. Each agency will take a look at all of your finances so they can find the best way(s) to help you get a handle on your debt.



What do they do?

Each consolidation agency is a little bit different; however most of them offer the same basic things. You can expect a counselor to sit down with you and to go through all of your debt with you on a personal level. They will help you figure out where you can cut some costs and will help you with budget creation. Most agencies also offer a debt management plan which allows the agency to pay your creditors each month from a lump sum of money you have deposited into your bank account. So basically, the agency works on your behalf with the people you owe money to; many times getting interest rates lowered which can substantially decrease the length of time you pay back the money.




All debt consolidation agencies are not the same, however, so don’t be fooled into thinking they are. While most of them are legitimate, there are a few out there that are looking to make a quick buck at your expense. So before you hop on board with an agency make sure you take the time to check out how legitimate they are. Contacting the Better Business Bureau about the agency can help you tell really fast if an agency is for you or not. Don’t skimp on doing the research on a credit agency or you may find yourself in even deeper financial trouble.