- 1). Find a consumer credit counselor. In most areas of the country there typically are several companies and nonprofit organizations whose stated goal is to help people get out of debt. Many of these companies are scams, though. They take fees and do little to help.
The U.S. Department of Justice maintains a list of approved credit counselors (see References). These counselors offer debtors required credit counseling prior to bankruptcy, but their services may be available to people seeking to re-organize their financial house. The U.S. Department of Housing and Urban Development also maintains a list of counselors that advise people on the financial aspects of home buying (see References). Many of these counselors also work with people trying to get out of debt. - 2). Contact a counselor near you. According to the Federal Trade Commission, many credit counseling agencies will offer their services at little or no cost to you. When you call to set up an appointment, ask what paperwork and documentation you will need in preparation for the meeting.
- 3). Research options with your counselor. There are plenty of options to repay the loan. If your lender is a member of the Community Financial Services Association, an industry trade association, it should offer you a repayment plan upon request. Filing for bankruptcy may also be an option. In some cases, a counselor may institute a debt management plan in which you write a check each week to the counselor. They, in turn, will pay your bills from the funds you give them. These programs help borrowers live on a budget and cut off access to credit.
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