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Return To Bankruptcy Article Archive   Destroy Debt and Avoid Bankruptcy With Credit Counseling Services By Michael Garvin It's easy to understand why people are struggling so much financially today. With everything essential seeming to cost more and more (i.e. gas and food), and the wages staying the same, it quickly becomes a battle to keep your head above water. The greatest temptation many couples and families are faced with in times like this, are credit cards. Although the invention of the credit card in the 1950's was a fabulous idea for companies like Discover and American Express, they seem to be part of the American downfall, as we are all in debt up to our eyeballs, and most of us will never break free of the chains they have placed around us. For years people turned to bankruptcy as a way out. It was easy to file, and seemed to be the golden ticket for people who were extremely debt ridden. However, times have changed, and the process of filing for bankruptcy is no longer easy like it used to be, and it viciously pummels your credit for years. So now what? What can a struggling middle class family do to keep from going under? To keep from living paycheck to paycheck in an attempt to make minimum payments on credit cards with APR's of 12%, who never really even put a dent on the principal itself??? The answer is simple. The answer is credit counseling. If you go on Google and type in "credit counseling" you will find over 4 million matches! That in itself proves how far "in the hole" most people are. In fact it has been said that on average, most American's are $20,000 in debt! And that is the average...which means there are plenty of people above that as well. What a good, legitimate credit counseling service will do for you is work with your creditors to reduce your interest rate and monthly payments. This way, you will be paying less out each month, but lowering your balances more. For some people this will save them hundreds of dollars a month, all the while making it possible to become debt free in as little as 5 years! This is probably the ONLY way most people will ever get debt free, and avoid bankruptcy. There is a catch to using a credit counselor however. Although in the grand scheme of things it seems like a minute catch, especially if you are living paycheck to paycheck and making late payments...but here it is. The catch is that once the credit counseling agency goes to work for you, all of your credit cards become inactive, and your credit will take a dip. Which means you cannot use the ones you currently have and are paying down. Although that is probably a very good thing for most people, especially impulse buyers, it can be tricky if you have an emergency or an accident and desperately need money and need it now. Because your credit cards become inactive, and you are using a credit counseling service, this will be reflected on your credit report, and may make it difficult for you to move, buy a car, or do anything drastic during the 5 years or so you are using the program. But you will be debt free in a fraction of the time you would have been apart from the program. And that is most definitely worth it. Taking the first step to making a change is always the hardest part. It involves careful planning and investigation, and well as a little time. But in making a change like this, to help not only you but your family as well is so worth it in the end. Especially when "the end" means being debt free! Although it is scary to have your credit cards put on hold and to have your credit to take a slight dip, think of how great your credit will be when your account balances read $0.00!!! What a day that will be. Don't be a statistic being part of the $20,000 average make a change today, so you can live comfortably tomorrow. Michael Garvin is a former mortgage loan specialist, who worked successfully for years for well known brokerage firms. Because of his experience in the mortgage industry, Michael found a passion for studying credit repair. Having a firm grasp on the topic, Michael created several websites jam packed with information, that is invaluable to most American's, and not widely known about. Visit the Credit Counseling Resources and Credit Repair websites. keywords: credit counseling | debt | credit card | bankruptcy Chapter 11 Bankruptcy Filing

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