When you open a credit card and use it in a harsh way, you might find it difficult to make repayments. It could happen to anyone of us. What to do then?

Under this situation, a debt counseling service might save you from your credit crisis.

Many banks offer debt counseling services, and you may also find lots of options from some private institutions as well. Debt counselors could help you analyze your paying habits and choose the option that fits your lifestyle and needs best.

There are lots of advantages for choosing a debt counseling services.

First, some debt counseling services are totally free or in very low-fee, which means you could ask for an expert without paying too much. Debt counselors will help you consolidate all your credit card debt into a single payment, which makes you understand your financial status better.

Debt counselor services are regulated by NFCC, the National Foundation for Credit Counseling, which ensures you a fair, legal and properly priced help. Once you choose a repayment plan that your counselors suggest, you can get rid of those annoying debt collections letters or calls. If you follow their plans restrictedly, your credit score might be improved as well.

However, there are some drawbacks.

The debt counselor would not allow you to apply for a new credit card when you are choosing a consolidation plan and when you owe some debts. In order to avoid the risks and your personal credit crisis, some counselors might suggest you to close your credit card, which may be inconvenient for you.

Also, you need to submit lots of personal information such as your income and your private consumption habits to the counselors, which means you need to prepare a lot of information before asking for a counseling service.

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