Government Credit Card Debt Counseling - Free Debt Counseling?

Government credit card debt counseling is part of a larger government program designed to help consumers manage their debt. Debt creates an overwhelming sense of despair. Living from paycheck to paycheck and juggling your credit card bills can trigger a cycle of debt and misery that is hard to escape from. As a way of protecting consumers the Federal Trade Commission is offering government credit card debt counseling and debt consolidation counseling programs. These programs are a requirement for debtors who file for bankruptcy. This is called mandatory counsel and according to the federal rules of bankruptcy procedure 1007 (b), 3 "an individual debtor must file a statement of compliance with the credit counseling requirement..."

What do these programs do? They offer practical advice and training on government debt consolidation methods, and provide access to approved credit counseling agencies. A first stop for borrowers looking for help is the Federal Trade Commission website (ftc.gov). There you can find guidelines on how to manage your debt, and contact details for government approved credit counselors. The first piece of advice the FTC offers is to contact your credit card company and "try to work out a modified payment plan that reduces your payments to a level you can manage." The second tip you will get is to contact a qualified credit counselor. At The Department of Justice website (http://www.justice.gov/ust/eo/bapcpa/ccde/cc_approved.htm) you can find a database of government approved credit counselors. This is part of the Justice Department's that supervises bankruptcies and trustees. The Federal Trade Commission recommends you always crosscheck an agency that claims to be approved by the government against this database.

Debt consolidation counseling should provide sound advice on how to deal with your credit card debt. This might include, among other measures, applying for a debt consolidation plan (DMP), or even filing for bankruptcy.

Article Source: http://www.articlesbase.com/credit-articles/government-credit-card-debt-counseling-free-debt-counseling-2165733.html

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