Consolidated Credit Counseling Services
Tough economic times can call for tough choices when it comes to paying off debt, especially credit card debt. Although credit cards can lead you into debt, there are services available that offer to reduce your credit card debt and lower your payments. Consolidated Credit Counseling Services is one of those agencies. This article will explore how the agency works.
Other People Are Reading
-
Function
-
Consolidated Credit Counseling Services was established in the early 1990s. The agency wanted to provide a service for families that were in financial straits and needed a way to bounce back out of credit debt. Consolidated Credit Counseling Services claims that they will provide customers with professional counselors who will tailor a financial plan to suit their needs rather than force them into a program that doesn't work. They offer educational classes that specialize in creating budgets and advice for people of all categories. For example, there are sections of advice for military members, children and senior citizens.
If you enroll in a debt management plan with Consolidated Credit Counseling Services, they will negotiate interest rates with your creditors so that you end up making lower payments.
Benefits
-
By participating in a debt management program with Consolidated Credit Counseling Services, you will only have to make one monthly payment instead of several payments to creditors. The agency can also negotiate credit card rates significantly lower than if you tried to negotiate on your own. Through lower monthly payments at lower interest rates, your payment record can be improved as all your creditors are paid on time. Participating in the debt management plan can help you avoid bankruptcy because you are still continuously paying creditors as opposed to charging off accounts.
-
Time Frame
-
Most debt management plans can be completed in significantly less time than paying the minimum balance on your own. According to Consolidated Credit Counseling Services, most accounts it accepts can be paid down between three and five years.
Considerations
-
Enrolling in a debt management plan with Consolidated means that you will have to close accounts. You will not have access to any more credit from those accounts. Although having regular payments may improve your credit score if you've ever fallen behind, having accounts labeled under debt management can turn off future lenders.
Potential
-
According to Consolidated Credit Counseling Services, a debt management plan may or may not be the best option for you. However, it doesn't hurt to have access to good credit counseling by professionals. Consolidated is also an accredited organization that is a member of the Better Business Bureau and the ANSI-ASQ National Accreditation Board.
-
