For many of us, these are difficult economic times. Household debt is now at a record high level relative to disposable income. Unfortunately, this often leads to personal bankruptcy and/or foreclosure. But that doesn’t have to be the case. There are alternatives to declaring bankruptcy or to allowing your home to go into foreclosure.
Credit counseling is available to help you restructure your debt, curb your spending habits and manage your monthly payments. The problem is finding a credit counselor you can trust. Many unscrupulous firms market bankruptcy as a quick fix for consumers who find themselves over their heads financially, whether they just went wild with credit cards or got hit with a job loss or illness.
One place to start is with the U.S. Department of Housing and Urban Development, www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm where you will find a list of HUD-approved credit counselors. Or you can call HUD at 1-888-466-3487.
Another excellent source for qualified help is the National Foundation for Credit Counseling (NFCC). This organization was founded in 1951 and is the nation's longest serving national nonprofit network providing premier consumer counseling and education services on budgeting, credit, and debt resolution. Many of the services are free!
There are more than 1,300 community-based NFCC agency offices nationwide. These agencies are often known as Consumer Credit Counseling Service (CCCS) and can be identified by the NFCC member seal.
NFCC member offices can be reached by calling 1-800-388-2227 or you can find them on the web at http://www.debtadvice.org/. The NFCC member locator is very user friendly – just plug in your zip code and it looks up offices with all contact information within as many miles as you designate.
If you find yourself in financial difficulty, the worst thing you can do is ignore it! The sooner you face the problem, the easier it will be to get out from under the debt. These places can help; all you have to do is ask.
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