SOURCE: A New Horizon Credit Counseling

Credit counseling, debt consolidation

January 04, 2010 15:23 ET

Co-Signed Credit Cards Are Dangerous; A Better Alternative According to A New Horizon Credit Counseling

FORT LAUDERDALE, FL--(Marketwire - January 4, 2010) - A New Horizon is a well established Credit Counseling company with over 14 years experience as a non-profit organization assisting individuals and families from all walks of life in regaining control of their finances. This is accomplished utilizing Financial Literacy training and a host of programs to counsel and educate individuals on the responsible use of credit along with a structured debt management plan to assist them in paying off their existing debt.

In February of 2010 the Credit Card Responsibility and Disclosure Act will become effective and prevent anyone under 21 from getting credit cards unless they can show sufficient income or have a co-signer on the account. This can be problematic for college students who rely on credit cards heavily while attending higher learning/higher education institutions. Typically credit card companies have not offered co-signed accounts; however, with the new laws taking effect in early 2010 some companies are considering this option given the economic hard times we all face in today's world. At present, only Bank of America has announced that they plan to allow co-signing. All other credit card companies have not made a decision or, like American Express, have said they have no plans to make any changes to their existing policies.

Clearly, the danger to co-signers is they now have an obligation to pay balances not paid timely or unpaid by card holders. In addition, it is unclear what time limitations the co-signers will ultimately be obligated for. The Federal Reserve has not released final language on these timelines as yet.

An alternative to this would be to enroll "credit challenged" young men and women in a reputable Credit Counseling Service program. A credible Debt Management firm will offer many programs including Financial Literacy Training, Budget Management and a host of other programs to counsel individuals with a free budget analysis and a structured debt management and repayment plan to assist them in realistically paying off their existing financial obligations in full. Enrolling early will provide education and counseling on how to properly manage credit and provide best practices for placing anyone on the road to financial freedom. A New Horizon Credit Counseling has seen credit scores increase when individuals enroll in Credit Counseling Programs and will ultimately lead to "credit responsible" young adults who are now educated on how to use credit RESPONSIBLY.

If you would like more information on how credit counseling may help you with Debt Management, Financial Literacy and Credit Counseling contact Stuart Lieberman who may be reached at (800) 556-1548 Extension 1126 or at A New Horizon --

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