The Consumer Credit Counseling approach looks to minimize debt by negotiating with creditors to lower payments and interest rates. However, unlike debt settlement, Consumer Credit Counseling companies ask consumers for payment and rarely slash actual debts. For those seeking to repay the entirety of their debt (especially a temporary blip caused by accident, illness or sudden unemployment), Consumer Credit Counseling is an option worth investigating, but be advised there may be negative consequences to your credit scores.
There's another aspect to Consumer Credit Counseling that should be understood. Many Consumer Credit Counseling firms often advertise themselves as non-profit groups offering financial advice, but they also take payments not only from the consumers but also the creditors. As you'd imagine, those working both ends of the system, wouldn't offer the best counseling and may suggest payment strategies that result in even higher debts for the consumer. The entire Consumer Credit Counseling industry is being more closely watched because of alleged misdeeds, and, though some Consumer Credit Counseling companies do help a specific sort of borrower, it's important to determine just whom they're actually working for.
Compared to debt settlement firms, Consumer Credit Counseling programs have very little motivation to reduce consumer debts (despite the fees charged) and can sometimes do more harm than good.
Credit Counseling Information
Consumer Counseling – Provided by a counselor that reviews your financial situation: income, assets and liabilities, and then provides money management and debt management recommendations.
Credit Card Debt Relief – Any of the various plans and services which aim to reduce and/or eliminate excessive credit card debt.
Credit Card Help – When one is in a situation of unmanageable credit card debt and a victim of unwise, personal financial practices, one is in need of credit card help.
Credit Card Relief - Any of the various plans and services which aim to reduce and/or eliminate excessive credit card debt.
Credit Counselors – These are counselors who offer non-judgmental advice to consumers to improve their financial situations particularly when it comes to credit and credit issues.
Credit Management – The goal of credit management is to help consumers gain control of their finances through education and credit counseling.
Financial Help – When one is struggling with credit card debt, good solid financial help should be sought out. There is no shame in seeking help to improve one’s credit and financial standing.
Get Out of Debt – A process which takes time and effort. Getting into debt does not occur overnight, and neither can getting out of debt be expected to happen so quickly. But with the right practices and the right guidance and professional support, one can indeed get out of debt.
Money Problems – Due to the current U.S. economic recession and mass job layoffs, coupled with credit that was far too easy to obtain and spend prior to this situation, many Americans find themselves suffering from severe money, debt and financial problems.
Pay Off Credit – The goal of most people struggling with credit and credit card debt. At a minimum, credit debt should be reduced to manageable levels.
Unemployment – Unemployment and unemployment rate reference people who are not employed but actively seeking work. We currently are facing the highest U.S. unemployment rate in over a quarter century.
