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What Is Consumer Credit Counseling?

By: Peter Kenny

There are times when consumers need help with their debt. While there are many ways to get help, one of the most effective is to use consumer credit counseling services. These organizations and agencies can go by different names. You may hear of them as debt consolidation or debt management companies.

These types of consumer debt agencies and companies have been around since the early 80’s when banking laws changed and credit card debt soon after became far easier to accumulate. Because so many people were getting so far into debt and were having problems meeting even the minimum payment requirements, the banks began to take some action.

Back then the only real course of action for indebted consumers was to file for bankruptcy. This was bad news for both the consumers and the banks. As an option to bankruptcy, the banks helped to establish and fund consumer credit counseling organizations. By doing this, they were able to recover their money as well as help out those who were in financial trouble.

Over the course of time, two types of consumer credit counseling companies have come about. One is the non-profit type organizations that help consumers to make budgets and to communicate with lenders. The other type is a for-profit enterprise that can do budgets as well but they usually offer more in the way of actually dealing with the debt problem.

It is not uncommon for consumers to become confused when they are looking for help with their debt issues. It is also become more common for consumers to get ripped off by bogus credit counseling companies, which makes it imperative that consumers investigate a company before they sign on with one.

Before signing on with any company, you should spend some time thinking about what it is that you need from the company. If you are looking for a debt consolidation loan, you would do much better to work with lenders who offer those types of loans. In some cases, this can mean your local bank or some other highly reputable lender.

If you are a consumer who has too many credit bills coming at the end of the month and you are constantly falling behind with your payments, you may not be able to get a debt consolidation loan and your better choice might be to work with a company that can help you get better interest rates from your creditors or perhaps better payment terms with the companies. As you can see, these are two different approaches, requiring the skills of two different type companies.

It is unfortunate but there are some companies out there who tout themselves as credit counselors or credit repair companies who are in the business not to help you but to make a profit off of you. Some of these companies want you to pay a high advance fee before they will do anything for you. Others will take the money you send to them for payments and use it for other purposes, which is basically fraud. Yet others will set up debt programs for you which will take decades of payments from you before you reach your goal of being out of debt.

Consumer credit counseling is a good idea for some people who in hardship circumstances, but do exercise caution when approaching companies for help. Be sure to check them out before signing on with any.

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_9053.shtml

The Benefits Of Tornado Insurance

By: Peter Kenny

Homeowners and business owners often wonder what types of insurance coverage they have as it pertains to certain weather events. One particular weather event that often causes confusion with homeowners is tornado events.

Most, and the emphasis here is on most, policies will cover homeowners and business owners for what are called wind events. Tornados are covered under the wind event listing. The best way to know for certain if you are covered for this is to look at your policy.

It is very important for those individuals who live in what is commonly called tornado alley to review their policies. Tornado alley is that part of the US that runs north from Texas through Nebraska and northeast to Indiana. There are other areas of the country, especially in the South, that also experience tornados on a frequent basis. The reason residents of these areas want to ensure they are covered is because many insurance companies are beginning to deny certain coverage levels to high risk areas of the country. This reduction in coverage is relatively new, which also makes it important to review your coverage when you renew or change your policy.

Those who live in hurricane prone areas will also want to check on their coverage as it pertains to wind damage and tornados. A tornado does not have the usual storm surge or the wide spread flooding that is a part of most hurricanes. All of this can become a problem when hurricanes do happen and certain homes and business are damaged by wind while the rest of the area has been damaged by other effects of the hurricane.

If your home or business does suffer tornado damage it is important to get with your insurance agent as quickly as possible. There are some policies that have time limits on reporting damage. This varies from one state to another.

You should also know that when tornados happen, insurance companies will often prioritize claims. Those who have suffered total loss of their home or business will be serviced first, followed by those with less damage.

If possible, you want to document your damage. This can be done by taking photos of the home and property. It is also a good idea to have an inventory list of personal items that were either damaged or destroyed. You can submit this list for compensation. Whenever you speak with an insurance representative, make sure you jot down the name and the topic of the conversation in case you need to refer back to that conversation later. Also, if you have to stay in a motel or hotel, keep all of your receipts, including those for meals.

It is unfortunate but true that predators often show up after a natural disaster. These people often come in as a construction or repair companies. It is important that you do not sign any home repair contracts until you have had a chance to look into the company that is offering to do the work. Many homeowners and business owners have lost a lot of money to fraud during natural disaster events.

Article Source:
http://www.articlecity.com/articles/business_and_finance/article_9055.shtml