Recognizing the Signs that You Might Need Credit Counseling.

Most families in America today have a credit card; some have two or more. The type of credit card you own, gold, platinum, ext, is almost a status symbol in society. The concept is a good one, using your good credit to purchase big-ticket items that you may need time to pay for. If used wisely, credit cards can be a dependable resource, however, sometimes we are unaware of fact that we are overspending. Some may think that if they are able to make monthly payments, then their debt is under control. This is not always case. These are some signs that you may be in or going in direction of having a major financial crisis. * You use your savings to pay monthly bills. * You pay only minimum monthly payments on any of your credit cards. * You take out cash advances to pay your credit card bills, or other bills that you may have. * You are over or nearly over your credit limit on one or more credit cards. * You have been turned down for loans. * You receive calls or letters from collection agencies.

Understanding the Process of Credit Counseling

Many of us have seen advertisements on television. "Get out of debt fast!" "We can solve all your credit problems with only one call!" These sound really great but you know that, realistically, one call is not going to solve your credit problems. If it were so fast and easy to get out of debt credit card companies and these agencies advertising on television would be out of business very soon. Credit counselors can help you to understand your credit problems and to devise a plan to help you to manage your debt. They do this by providing services to you for a fee or for free if it is a non-profit organization. Some agencies will provide a free debt analysis to determine best way in which they can service your needs. The following is a guide to help you understand how credit counseling works and if credit counseling is right for you.

The first step you should take is to decide if you do have a debt problem. For some it may be obvious, but for others they may not recognize problem until they are faced with a collection agency. If you are only making minimum payments on your credit cards, or taking cash advances to pay bills, then you may need to seek advise from a credit counselor.