Q: I’m a 22-year-old college student who has racked up almost $8,000 in credit card debt. I honestly have no way of paying these bills in a timely manner. Instead of filing for bankruptcy, I would like to consolidate my bills with a consumer credit counseling service. Can you refer some well-known and trusted agencies?
–J.J. Jackson, Via the Internet
A: You should know that the debt-consolidation process can take several years, but you can start the process now. In many ways it is a good exercise in disciplined spending and budgeting.
The first steps are to stop using the cards, and then develop a budget to
If that task becomes overwhelming, your biggest assignment will be to find a reputable company that will put together the best possible plan. There are several options including credit counseling; balance transfers; and consolidation loans, which in some instances can cost you more in the long-term. Members of the Association of Independent Consumer Credit Counseling Agencies (800-450-1794) and the National Foundation for Credit Counseling (www.nfcc.org) are among the most reputable. The former caps enrollment fees for debt management; members of the latter are charged less than $20.
Mail your consumer empowerment questions to Ask Your Advocate, BLACK ENTERPRISE130 Fifth Ave., New York, NY 10011or send an e-mail to alleynes@blackenterprise.com.