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If you're in debt, you're not alone.
According to the Federal Reserve, Americans are in $1.98
trillion of debt -- that's more than $18,000 per household.
If your debt is overwhelming, you can seek help from
a debt or credit counselor. But whom do you ask and
how do you know they have your best interests
in mind?
We've gathered the most frequently asked
questions about debt and credit counseling. They should
help you on your way to a more stable financial future.
| Q
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When
do I know I need debt counseling?
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is no specific amount of debt -- whether it's $5,000
or $50,000 -- that means you need a debt counselor.
You need to consider how much income you have each
month, what your expense are and what your financial
plans are. If you can plan a way to get out of debt
yourself, that may be your best bet. If you feel
helpless, overwhelmed or can't figure out a plan,
you may need debt
counseling. |
| Q
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How
do I find a good debt counselor or credit counselor? |
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When shopping for help, either
for a credit counseling agency or a debt consolidation
agency, keep in mind that just because a company
claims to be nonprofit, doesn't mean they have
your best interest at heart. Be wary of a company
that immediately urges you to join a debt management
plan -- they should take an interest in your particular
issues, not throw you toward a cookie-cutter plan.
And like any other big decision, shop around and
ask for all prices and fees to be stated up front
and put in writing.
Bankrate has
more in-depth
tips on finding someone to assist you with
your debt.
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