1. Consider self-help initially: Even if you hook up with the most trustworthy debt consolidation or credit counseling agency, you’ll still be liable to pay some kind of fees. You must always remember that this money could well be used to whittle away your debt if you helped yourself. If you’re all on your own, you might be able to grab low interest rates by working out an alternative debt repayment plan with your creditors. Call your creditors; tell them about your financial hardship so that they agree to revise the terms and conditions on your credit card accounts. However, if you feel that such steps aren’t realistic for your financial situation, you must get outside help.
2. Redirect yourself to a better direction: If you’re convinced that your debt issues are so much out of control that you can’t combat it alone, a reputable non-profit credit counseling agency may just be the right option for you. You must check the credentials of the counselors and stay connected to only those agencies that have committed to certain ethical and professional standards through the NFCC (National Foundation of Credit Counseling) and the AICCA (Association of Independent Consumer Credit Counseling Agencies).
3. Stay on high alert for costly financial mistakes: If you agree to a debt consolidation or a debtmanagement plan, the debt consultant may tell you to pay the further bills to them and they will disburse them to your creditors in due time. This might be a fine option for you but you must check whether or not the agency disburses off the money on time. If they are late while making the payments to your creditors, this may hurt your score in the long run.
4. Make sure the plan that you choose is the best route: Be wary of all those agencies that push you into accepting a plan before even reviewing your present financial situation. The actual truth may be that you may not even need to resort to such a plan. It often happens that you get back on track by following the advice that is provided by the agency. Consider that you may not be able to seek or use new credit when your plan is in place.