New Jersey Financial Counseling Services

It's easy to rack up debt, and during this tough economy, it's hard to get out from underneath it. Even small purchases can add up to high interest rates and fees that make it seemingly impossible to pay down your debt and get back on solid ground. The circumstances that can cause people to go into debt are many- divorce, death, illness, even unexpected medical bills. While your debt piles up, your interest keeps accruing, and if you only pay the minimum every month, it will be a long time until you pay it off, if you ever do. Before you consider bankruptcy, you should learn about some of the New Jersey financial counseling services that are available to you. They can be a real lifesaver in an attempt to get out of debt quicker.

What Exactly is Financial Counseling?

Financial counseling is intended to help you pay down, rather than run away from your debt. When you're buried under a mountain of debt, our counseling services can help you get back on the track to financial solvency. Credit or financial counseling involves a full inventory of all your debt, and the formulation of a reasonable plan to pay down the debt. We will also negotiate with your creditors to wipe out late fees and possibly reduce those high interest charges.

How Does the Service Work?

Before you hire us or any other financial counseling service, you should verify that it is an organization in good standing. Make sure that consumer reviews for it are good, and you should ask family and friends or the Better Business Bureau for recommendations. Steer clear of any organization that promises to wipe out your debt where you will never have to repay a dime, and also avoid any company that asks for a large up-front payment to assist in the paydown of your debt.

What Next?

After you have chosen our company, you will meet with a trained financial counselor. They will ask you questions about your debt, your expenses and your income. This step can also be completed by filling out an application, and once the counselor has a good idea of your debt, income and expenses they will figure out how much of your earnings can be used to pay your debt. The counselor works as a middleman between you and your creditors, and they will negotiate with them, asking them to accept a more reasonable monthly payment. Once we've repeated the negotiation process with all your creditors, we'll draw up a repayment plan and work to close out your accounts so you don't accrue any more debt.

Most financial counseling orgainizations will charge you a monthly fee, that they distribute to creditors via the repayment plan. If you stop paying the monthly fee or discontinue participation in the program, your interest rate and -free, and balance will likely go back to where they were before you enrolled in credit counseling. Hiring a financial counseling service will go a long way in helping to get you debt-free, and keeping you that way.