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Home » Business And Finance Articles » Consumer Intelligence Choosing Smart Debt Consolidation

Consumer Intelligence: Choosing Smart Debt Consolidation

There is an onslaught of American consumers acquiring more debt. It makes for the business of debt consolidation management an emerging industry. Nonetheless, as the marketplace of the indebted continues to reach proportionate heights, it does not do much for the consumer. According to IRS commissioner, Mark W. Everson, "The new breed [of non-profit credit counseling agencies] appears to be more focused on marketing debt management plans than providing educational or charitable services."

Over the last seven years, the United States economy has been quite turbulent. Pre-9/11, American consumers demonstrated gluttonous buying behavior. Wallets and purses tightened after the crisis at the World Trade Center. As the economy continues to boomerang, many patrons are feeling the aftershock of a previous time of financial depravity. Subsequently, credit counseling services, debt management plans and debt consolidation loans are inundated with clients to serve.

The overwhelming number of grievances regarding non-profit credit counseling agencies is an emerging concern. Tens of thousands consumers have filed complaints with the Better Business Bureau regarding the unethical and false representation of the debt management organizations. The government is looking into the problem via the Internal Revenue Service. It may conjure new audits and income for the country, but it may not impact predatory organizations for victimizing consumers entrenched in debt.

Services Offered by Credit Counseling Agencies

By and large, both for-profit and non-profit credit counseling agencies extend invaluable debt management support. The significance of a counseling agency offers the following services:

• Acts as a liaison between creditors and debtors
• Helps consolidate unsecured debt
• Offers educational information
• Assists people with better personal financial management

The stereotypes associated with the indebted consumer are not all true. Unlike the classification of the irresponsible consumer who has charged their way into a financial stupor, a vast percentage of people have incurred extenuating circumstances. The misfortunate scenarios can be anything from a job layoff in a dying industry, to a medical fatality to the devastation of a divorce or even death.

Credit Counseling, an Ultimate Alternative to Bankruptcy

For the American who finds themselves ensconced in unforeseen circumstances, there are alternatives. Since bankruptcy can leave a big stain on one's credit report (up to ten years), credit counseling is the ultimate opportunity. As any industry has ethically bankrupt groups, the same is true of the debt management and credit counseling sector. With the escalation of American debt, a few illicit firms have been inspired to use consumer's misfortune to their fortunate advantageous.

Consumer Smart Credit Counseling

Nonetheless, for the American consumer in quest of credit counseling here are some consumer smart strategies to identify an illicit credit counseling firm from an ethical one.

• Any non- profit that charges excessive fees
• Fails to offer free personal financial advice for a do-your self solution
• Neglects to discuss or disclose fair consumer's legal rights
• Prior to providing counseling services, requires an upfront payment for credit repair
• Advises the consumer to dispute all information contained in the credit report
• Encourages the consumer to contact a credit reporting agency, directly
• Supports illegal actions the consumer can take to amend their credit (for example creating a new credit identity)
• Prescribes that the consumer to restructures a good credit rating by applying for an Employer Identification Number (FEIN)

Essentially, whenever a professional agent, business consultant or financial counselor recommends any type of fraudulent activity, the consumer is liable for prosecution, as well. If you seek help from a credit counseling agency or debt consolidation firm that recommends any of the above fast fixes for your credit rating, report the unethical recommendations to the Better Business Bureau.

Five Consumer Smart Strategies to Employ Before Opting for Debt Consolidation

Conduct a background research on debt management firms. Check with your state's attorney generals office and the Better Business Bureau. If the credit counseling firm has a propensity for committing fraudulent business tactics, they will be listed on either the Better Business Bureau or the Attorney General's office.

• Determine whether the service extends workshops on budgeting and managing personal finances. (It is one of the more prominent signs of an ethical credit and debt counseling/consolidation program).
• Request how the financial counseling agency is paid. Generally, when debt representatives are paid on a commission basis, they are motivated to improve their financial status versus their customers. Do not forget to present the same question to any non-profit debt organization as well.
• Inquire the credit counseling services hours of operation. The credit and debt service should be open during normal business hours. Be leery of debt management firms that contact you via telemarketing.
• Request a list of fees. Before finalizing a credit counseling agreement, request a detailed overview of the fees associated with the company. Overall, steer clear of any credit or debt management firms that carry exorbitant fees or abnormally high deposits requirements.

Finding the right debt consolidation program to get one's personal finances on track is a matter off applying the above consumer intelligent tactics.

© About-Personal-Loans.com. All rights reserved.

And here is another random article you might be interested in...

What's the Secret of Your Sucess?

I'm going to begin this article by sharing a little secret with you...

'If you want to experience success as an entrepreneur you must first experience entrepreneurial success.'

So what exactly do I mean by this?

Success is never an accident. To reach the pinnacle in any field of endeavour you must have the ability to visualise, touch, taste, hear and smell your own success.

Can you imagine an Olympic champion standing on the podium totally surprised to pick up their gold medal? There's absolutely no way! Chances are they've imagined exactly what it would feel like to wear their medal, wave at their adoring fans and sing along to their national anthem, thousands of times before it actually became a reality.

You have to see it first!

It was Vincent Van Gogh who said, 'I dream my paintings and then I paint my dreams.' As an entrepreneur you have to be able to see your business as a success before it can become successful.

Once you have an understanding of your business concept, visualise the happy customers that you will serve, the business partners that you will collaborate with and most importantly the streams of money that will flow into your company's bank account for work well done.

What will having a successful business mean to you?

As an extension of this visualisation exercise also consider what having a successful business will mean to you personally. For me, a successful coaching business means being able to do the work that I love, surrounding myself with inspirational people and having the opportunity to share my own unique talents.

So what does success in business mean to you? Your definition can actually span many different levels. Consider what it will mean to you financially, emotionally, spiritually, mentally and physically.

Once you have your list, ask yourself "what can I do to start experiencing those states of being immediately?"

Celebrate Your Success!

Celebrating your success is a crucial part of attracting even more success.

When I launched my two coaching newsletters, I had a vision that I wanted them to inspire people all over the world. My subscriber list begun with one subscriber in one country (in other words, me!). Every time someone from a new country signed up I would celebrate the achievement by either clapping my hands, clicking my fingers and on the odd occasion by giving myself a high five (embarrassing I know!). I also follow a similar process every time I sign up a new client.

A simple process of acknowledging and celebrating your success is a very important part of attracting increasing levels of prosperity and good fortune into your life and business.

So what is the secret of your entrepreneurial success?

Imagine yourself sitting in a chair being interviewed by a television journalist five years from now. You breeze through her pleasant enquiry until she asks you the final killer question "So tell me, what is the secret of your entrepreneurial success?"

This will be your cue to take a big deep breath, rock back in your chair, throw you arms behind your head as you remark 'Well I'm flattered that you asked. The secret of my entrepreneurial success is .................. (and you can take it away from here!)

When you are crafting your response be sure to highlight your unique talents, your extraordinary ability to overcome any adversity and most importantly your capacity to celebrate every little success along the way!

Copyright Damien Senn 2005. All rights reserved.