Free Credit Help

Free credit help is available through several nonprofit organizations whose advertisements on the Internet promise to solve money problems and have clients debt-free in twelve to thirty-six months. The usual method used by companies offering assistance is to consolidate all debt so debtors have one monthly payment instead of many. This means going through a lending institution or bank for a loan to pay off the creditors. The company offering assistance will usually negotiate a lower interest rate as well. At the same time, the debtor is required by the free credit help company to cut up all his or her credit cards and agree not to add to his or her indebtedness while the loan is being paid off. Debt assistance services sometimes come in the form of negotiations by the company with each of the client's creditors to lower or eliminate the interest on the debt, and agree to a lower payoff number. In this case, the free credit help firm then collects from the client and distributes payments among the creditors, while taking a percentage for itself; thus making the service not free at all. Beware if this last scenario is presented.

Among the methods suggested by debt assistance services is the home equity loan. A home equity loan allows homeowners to take the equity in their home to pay off bills. The only drawback of this plan is that if they sell the house before that loan is paid back, the balance must be paid before any funds can be received from the sale. Since cardholders are not required by the free credit helps company to dispose of credit cards with this plan, it may not keep them out of debt for long. Some card companies are offering to assist with debt consolidation at a fixed interest rate, which may help, but it isn't the best answer. Even if they start out with zero interest, that is limited to a few months, then interest is charged. This can be helpful to those who don't use other cards. Included in the services of debt assistance companies is counseling that will help keep clients out of debt in the future. Free credit help firms may be the people to consult early on to keep debt from getting out of hand. Budget planning is part of the counseling offered as well.

Those who are overextended should to provide their own free credit helps by calling creditors themselves and negotiating lower interest rates. Or they can contact a bank for a consolidation loan, and discard cards (except for one for emergency use). Not that the bank will make the loan for free, but borrowers are not paying someone else to arrange it for them. Reliable, free credit helps services are available through many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service. Debtors need to pray about their struggle with borrowing and overspending. "Happy is he that hath the God of Jacob for his help, whose hope is in the LORD his God" (Psalm 146:5).

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