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Home> Income Tax Guide

Debt Counseling

Debt counseling are usually sought after when some one is having problems keeping up with and paying his debts. There are many debt counseling companies out there, usually for a fee but some offer free counseling, to individuals and companies who struggle with their short term and long term financial obligations.

Usually, it would best to seek the services of a debt counselor or financial planner well before you get yourself too deep in debt. If you see yourself headed in that direction, go and get the debt counseling help.

But before you ask for the help of debt counselors, you should know that some of them have ties to many of the same creditors that you may be indebted to and there may be a conflict of interest.

As a debtor, you should ask the debt counselors up front if they have any ties or obligations to any of your creditors and the debt counselors should be more than happy to disclose who they represent, or have ties to, in writing. If not, you should seek your help elsewhere.

Debt counselors are there to give you sound financial advice and they tell you what you don't want to hear about your spending habits. Most people already know what there financial problems
are, they just need to hear it from someone else. A debt counselor can only help you if you are willing to help yourself.

If you are too heavily in debt, you may have to resort to filing bankruptcy, but that should be a last resort. Congress has enacted a sweeping reform bill that may require a petitioner,before entering bankruptcy, to go to debt counseling.