Debt Consolidation -- Choose Your Credit Counselor Carefully By CharlesEssmeier

Recently passed by Congress, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 will require people who are filing for bankruptcy to first undergo mandatory credit counseling.

This is probably not a bad idea; after all, many people with problem debt could probably benefit from credit counseling. A good credit counselor can assist clients with problem debts in establishing a repayment schedule, creating a personal budget, and learning how to avoid debt and credit problems in the future.

The problem is that with the estimated one and a half million additional people seeking credit counseling each year, there will undoubtedly be more credit 'counselors' entering the market, and many of them are only interested in reaping huge profits at the expense of their clients. There are already a number of credit counseling firms working in the marketplace that advertise themselves as 'nonprofit', when they actually are closely tied to for-profit debt consolidation firms. These agencies will strongly encourage their clients to consolidate debt through their partner company, and the result may be a long-term loan for the client that doesn't help them at all, but reaps huge profits for the consolidation firm. How can someone who is genuinely seeking legitimate, helpful credit counseling choose a counseling agency wisely?

*Counselors should listen. If they start pitching a solution to you during the first fifteen minutes you are there, you should be suspicious. A credit counselor should be gathering information about you in order to determine how best to help you. They can’t possibly know how to help if they don’t understand your problem. Unless, of course, they don’t care about your problem and only want to sell generic “solutions.”

*Watch out for firms that want excessive fees up front. Be particularly wary of nonprofit agencies that ask for fees or “voluntary contributions” or nonprofit agencies that tell you that they cannot help you if you do not pay a fee upfront.

*Beware of firms that ask for a sizeable fee to obtain a copy of your credit report. Such agencies should be able to obtain your report at no charge, and you are entitled to one report per year for free.

*Sometimes, bankruptcy is unavoidable. Watch out if the agency doesn’t mention bankruptcy at all, or if they change the subject if you bring up the topic. Debt consoldators cannot make any money on bankruptcy cases, but sometimes, that’s your only option.

*Shop around. Talk to several different agencies and compare what they tell you. Any agency that differs dramatically from what the other agencies are telling you should probably be avoided.

*Check with your local Better Business Bureau, and ask if they’ve had any complaints about the agency.

*Watch out for firms that offer quick solutions to your problems. You didn’t get into financial trouble overnight, and you won’t get out of financial trouble overnight. Any competent debt or credit counselor will know this and will undoubtedly tell you that working your way out of debt takes time.

*See if the agency belongs to the National Foundation for Credit Counseling or Association of Independent Consumer Credit Counseling Agencies. Many do.

By taking a few simple precautions before agreeing to work with a credit counselor, you may save yourself a lot of grief and a lot of money later.

Resource: http://www.isnare.com/?aid=2107&ca=Finances

Online Loans By David Bruce

Short term loans can be a great way to fund a large purchase, or simply to help you meet your existing commitments when times get tough. Unfortunately, trying to find a personal loan can often be a complicated and involved task, and it can be a very time consuming process. Fortunately, the Internet provides the solution for many looking to find a personal loan for their circumstances, with numerous comparison and loan websites offering a run down of the best available deals for those looking for finance. In addition to that, it is also possible to obtain loans from online providers at reduced interest rates provided you know where to look. In this article, we will look at lending over the Internet, and how you can go online to help find the best deals for your circumstances.

Online lenders can often be the solution to those looking to obtain low cost finance. Lenders that exclusively operate online have the ability to pass on savings to their customers through automation, and reduced overheads by virtue of the nature of their operation. Operating online means the lender doesn't need expensive premises, and doesn't have the same overhead burden as other lenders do. This in turn allows them to offer cheaper services whilst still making the same, or possibly even an increased' profit margin as compared to traditional lenders. There are several major online banks that can provide these kinds of services at extremely competitive rates, and it would certainly be worthwhile investigating these online loans as a way to raise the finance you require. However, remember that lending online is no different from lending offline, and any commitments you do accept will be as enforceable against you should you fail to make the required repayments as agreed with your lender.

The Internet can also be a great way to save you time when searching for a low rate loan for your circumstances. By searching online through the various institution websites, you can find out about their lending rate, and the borrowing process in order to help establish the lender that best fits your criteria. Alternatively, there are a number of online loans comparison websites, designed to show you a glimpse of the market in seconds to allow you to best make your decision. Of course many of these sites accept an affiliate commission for each loan they sell, so it is important to remember that this is only a picture of what the market looks like, and you should go on to do further research beyond this stage if you are serious about finding a loan that works well with your circumstances.

The path of lending has been dramatically altered by the Internet, and with the advent of online loans and virtual lenders, it is possible to find cheap loan solutions whatever your situation. Provided you do the research behind the scenes, the internet should be an invaluable guide in sourcing the precise loan you require, at an acceptable, affordable rate of interest.

Resource: http://www.isnare.com/?aid=178732&ca=Finances